Settlement of Accounts between Latvia and Russia
Let us take the last point first, viz., the mutual settlement of accounts between Latvia and Russia.
It seems that here M. Mandelstam wishes either to frighten us or simply to “overcharge” us.
Now from the statements of the Ministry of Finance it is evident that Latvia has given yearly to the State a surplus of revenue over and above the expenditure, which is valued at about 30 million roubles, after having paid out of her own revenues all the expenses of the State within the boundaries of Latvia, including expenditure on numerous institutions, on strong armies and frontier guards, etc. In how many yearly instalments does M. Mandelstam intend to repay that surplus to Latvia?
It is absolutely impossible to understand of what expenses for the defence of Latvia M. Mandelstam is speaking. Latvia’s share in the State Budget, including army and navy, as we have already seen, is paid off with a surplus for the Russian Budget. Of what other expenditure then is M. Mandelstam speaking? Of war expenses for a defence which was a failure and brought Latvia nothing but destruction and ruins? Who would pay for a task so badly done? And if that is the expense referred to, what is the cost M. Mandelstam puts on the senseless and aimless devastation carried out in Latvia by Russian armies? They are very well depicted in the exhaustive work by M. J. Sahlit, member of the Imperial Douma.[2]
Another indiscreet question: At what rate of exchange does M. Mandelstam suggest paying the mass of Russian credit-notes with which Latvia was deluged, and against which the Russian Government has received goods of a fixed weight and at a fixed price?
If a reckoning is set up—for conscience’ sake, naturally—Latvia will have to receive from Russia amounts which will be a considerable balance in the establishment of her own finances.
Economic Interests of Latvia
Concerning the economic interests of Latvia, it is scarcely probable that M. Mandelstam need defend them against the Letts themselves. This time M. Mandelstam has evidently gone to unnecessary trouble. If the economic interests of Latvia so weightily necessitate her reunion with Russia, the Letts, being accustomed to calculate quite dispassionately, will soon see their advantage and will be anxious to adhere to the All-Russian Federation projected by M. Mandelstam of their own free will. Consequently, why does M. Mandelstam insist on establishing Latvia’s happiness by force and compulsion? Is it possible he has forgotten that he who tries to prove too much proves nothing?
Besides, M. Mandelstam appears to be ill-informed on the economic life of Latvia. It is not true that Latvia needs the Russian market for her agricultural products. It will not be difficult for her to find a more profitable market in the West. It is equally not true that Latvia will be deprived of the transit trade of Russia, for her ports are the most convenient transit points for Russia; and Latvia, for the purpose of increasing and developing this transit trade, will do her best to further her own interests. M. Mandelstam is equally mistaken as regards Lettish industry. Fuel, in the shape of coal, has been supplied to her up to the present not by Russia, but principally by England, and Russian iron ore could easily be replaced by Swedish. Generally speaking, one may say that Latvia, being in a better economic situation than Russia, can rightly hope that the latter will look for normal economic relations with Latvia, and it would have been more comprehensive and more natural if M. Mandelstam had only taken up the defence of Russia’s economic interests.