RUSSIA: Counterfeiting Explained

Many a prisoner hurls accusations from the dock, desperately tries to save himself by accusing others. Sometimes the accusations are truth. In Berlin last week one Basilius Sadathieraschvili, a citizen of the Soviet Republic of Georgia, sought to win the Court’s mercy by pleading that he was only a small cog in a very big counterfeiting machine powered by the Soviet Government.

Comrade Sadathieraschvili claimed to know all about the notorious European counterfeit issue of more than $100,000 worth of U. S. $100 Federal Reserve notes, dated 1914 and picturing Benjamin Franklin (TIME, Feb. 3). (Polish banks last week became so alarmed that they refused to accept any U. S. banknotes’ in denominations of $100 or larger.) With a wealth of circumstantial detail M. Sadathieraschvili of Georgia accused another Georgian, the Dictator of Soviet Russia, commonly called Josef Stalin, but named by his parents Josef Vissarionovich Dzhugashvili.*

As presented in writing to the Court, the statement of Comrade S. of Georgia read:

In 1928 the Polibureau of the Soviet Government under the direction of M. Stalin decided to print false English pound sterling notes and American and Mexican bills in preparation for warfare with China and with the purpose to employ these means in case any foreign state should interfere with the Russo-Chinese war.

“Three men, namely M. Kaganovitch, known as Stalin’s right hand, Jarovski, and Enukidze, secretary of the central executive committee, were intrusted with carrying out this scheme.

“The counterfeited notes were manufactured in the Soviet Government’s own printing house in Leningrad and in two printing houses in a Russian city on the Don River. The printed notes were despatched to the first triumvirate, which counted and controlled them.

“At the end of 1928 and early in 1929 a great many of the forged British and American notes were despatched to Mongolia for General Feng* while large amounts were sent by the Soviet Government to Irkutsk, Siberia, to be used in the Far East.

“The Soviet Government further put into circulation false foreign bank notes in Siam, India, Mesopotamia, Syria, Palestine, South America, Mexico and African coast cities. During the summer of 1929, forged notes were circulated also in Europe—namely in Poland, Germany, Holland, Italy and Greece.

“In order to facilitate the circulation of forged money abroad, the Soviet’s financial representative in London, Belgard, was called to Moscow and received an order to organize the circulation of forged pound notes in London. When Belgard refused to obey this order, he was killed. The letter which Belgard addressed to his wife, warning her not to come to Moscow and relating the demands the Soviet Government had put on him, was seized by the Soviet secret police. Shortly after, Mme. Belgard died from poisoning under mysterious circumstances. . . .”

Prudent observers suspended judgment.

I awaited proof of Soviet perfidy.

* A name that looks hard but is actually easy to pronounce. The trick is to take one’s time and roll it out slowly, Russian fashion, at full, length: “Josef Vis-sur-ee-ú-nun-vich Zoogoash-vee-lee.”

* The great Chinese War Lord Marshal Feng Yu-hsiang, master of the largest private army in the world (150,000 men), called the “Christian Marshal,” partly because he has distributed thousands of bibles to his troops. He has several times visited Moscow, unquestionably receives a large subsidy (real or counterfeit) from the Soviet Government. In China there has been no outcry against Feng charging him with paying his debts in bad money.