S. I. Shulenburg

“ There can be no better market for this kind of commodity than Russia. Russia's natural resources and her people's productive forces are truly enormous, almost incalculable. Russia's life, commerce, and industry are just beginning to develop, and they will continue to develop for many years to come. The people's purchasing power and the demand for all kinds of commodities is growing rapidly, and the tempo of this growth becomes faster and faster.
I cannot find a single field of trade or industry in which American capital would not be able to find safe and profitable application. ”

“ It seems to me that three or four decades from now, Russia's railroad system and her trade with America will have developed so much that it will be quite natural to realize that, as a matter of fact, we are very close neighbors, that our territories are separated only by a narrow strip of water, scarcely thirty-five miles in width. Then it will be well to remember also that the Russian and the American railroad builders have always been bold, that they have never stopped before the most serious problems, and have always solved them successfully. ”

“ In other words, the trade relations should not be one-sided. Therefore, I shall permit myself to warn you against being carried away by the thought that export trade from America to Russia should be brought about at any cost. Such export relations can and will develop only when there will exist, and be ready for development, an equivalent in value import of Russian goods to America. ”

“ If it is desirable that the trade relations between the two countries should be close, animated, and long-lasting, it is necessary that such relations should be profitable not alone for one of the countries, but for both. ”

“ The more the people of America will become acquainted with that of Russia and with the conditions of life there, the easier will it be for every one of us to find the answer to the question: whether close commercial relations between Russia and America will be possible in the future. This question is undoubtedly of great interest and of great importance. I shall permit myself to give a very direct and definite answer to this question. My answer is: Trade relations between Russia and America are possible, desirable, and must necessarily come about, as a result of the natural trend of things. ”

“ It is true that a part of Russia's territory overlaps the Arctic Circle, and that the Winter there is cold and, no doubt, not very pleasant. Yet even there, Summer comes regularly. And then snow disappears, and it becomes possible to raise certain vegetables and grains, for the sun never sets for weeks and even months. But then, another part of Russia's territory extends far south. Our Crimea has mild, wonderfully pleasant climate, where snow is almost unknown and in which grapes and other warm-climate vegetation thrive. ”

“ The private railroad companies are under Government control and almost all enjoy the privilege of Government guarantee. This means that the Government guarantees the payment of interest on railroad bonds even when the net earnings of the railroad are not sufficient.
What I have just said is enough to indicate that in the railroad field, Americans, when working in co-operation with Russians, will find highly favorable conditions for the application of their capital and energy. ”

“ There are unlimited prospects in this field of application for American capital.
The field of mining industries, metallurgical in general, and iron and steel in particular, deserves special attention. Russia possesses very rich deposits of gold, platinum, copper, manganese, mineral oils, etc. Her iron ores are of the best quality in Europe, and the supply is so enormous that it cannot be calculated. In many places iron and coal deposits are found almost side by side. ”

“ In speaking about the future trade relations, it is natural that the question should arise as to what goods can be exported, and what goods can be imported. I think that it would be perhaps a little hazardous on my part to give a detailed list of such goods. This question can be settled only by a most elaborate and careful study of all conditions of the markets in each department of trade. These conditions change continually: goods that cannot be sold to-day may be sold very readily to-morrow. ”

“ The production of such implements in Russia has been developing very rapidly in recent years, but the demand for them was developing even more rapidly, and therefore the annual import of agricultural machinery has been very considerable. I have no doubt that in the future the demand for these articles will increase every year, and that, therefore, in this field the Americans can do a great deal. ”

“ But if the Russian railroad system appears large when the figures are taken absolutely, it proves to be totally inadequate if taken in relation to the area and the population of the country. Comparing Russia with other countries, we get the following picture: In European Russia there are 16 miles of railroad per thousand square miles of territory ”

“ The city of Tiflis in the Caucasus lies almost on the same latitude with New York, and Russian mid-Asiatic provinces lie as far south as the state of Virginia. Even our famous Siberia in its central and southern parts has a good, healthy, dry climate, with cold Winters, but with warm and dry Summers. ”

“ This figure is very significant, as it shows how rapidly the economic life of the country is progressing and how insistently it demands the improvement of the railroad lines already existing and the construction of new ones. Two-thirds of the Russian railroads are owned and operated by the Government, and one-third is owned and operated by private companies. ”