File No. 861.51/191
The Ambassador in Russia (Francis) to the Secretary of State
[Received August 24, 3.15 a.m.]
1645. Am still without reply to several cables concerning Russian credits which I understand limited to $100,000,000 and special credit $75,000,000. Former about consumed. On latter $10,000,000 paid National City [Bank] and additional $10,000,000 requested by Russia indorsed by myself. No [report] concerning additional $60,000,000 for August maturities.
Have endeavored since arriving Petrograd April, last year, to encourage and facilitate Russian exports, which very potent in preserving exchange value ruble. Imperial Government denied all my requests for export of skins but have secured consent Provisional Government for export 5,000 tons thereof in exchange for sole leather and shoes. Russian Government proposed requisition said skins and to purchase leather and shoes at prices already agreed upon but it is necessary to ship shoes, leather promptly before navigation closes and before skins can be shipped, consequently shoe leather manufacturers compelled to credit Russian Government until arrival of and disposition of skins for about $5,000,000 which vendors of shoes, leather decline to do. Hutchins, vice president, Bank of Commerce, New York, here, has devoted much time and thought to the transaction, sending cables amounting to over Rs. 2,000. His bank willing to make advance for shoes, leather, charging 6 per cent, and arrange for purchase same and sale of skins for Government at minimum prices, charging 2½ per cent commission, no other profit. Government desirous to consummate transaction. Leather, shoes greatly needed. Commerce however desirous that cost shoes, leather [Page 22] be guaranteed by our Government until arrival of in America where demand for skins great. Tonnage to America readily obtainable, tonnage from America arranged by Minister Supplies from allotment made his Department. Can you make such guaranty? Preston of Keith Co. also been attempting this exchange. Possible Preston and Hutchins would work jointly. Think greatly desirable because moral effect [$]5,000,000 exports more helpful in sustaining ruble exchange than [$]25,000,000 applied thereto. I recommend because think moral effect very beneficial and important. We should do everything to encourage and strengthen situation here. Suggest you confer with Department of Commerce whose commercial attaché familiar with situation.