The Express.
London, England, 1862-04-28 00:00:00

EXPRESS, MON

THE

subjected to an amount of loss, or to a negation
of profit, which would render our venture in the
huge Russian Loan of 1862 one of the most un-
profitable speculations we ever ventured upon.
It is the more requisite that these considera-
tions should be calmly reviewed, because there is
apparently • disposition to conceal the true bear-
ings of this matter. In quarters where Russia,
her finances and her financien have heretofore been
fiercely denounced, and where, even within the
last few days, a tone, not merely of caution,
but of warning, has been adopted with re-
gard to this same Russian Loan, Messrs.
ROTHSCHILD'S appearance has been hailed almost
with gratulation. In face of the fact that every
Russian loan in existence is at a discount, and
that the two latest issues involve, at present prices,
a serious loss to the original subecribers, it is boldly
affirmed that "our experience of Russian loans is
" without a sinals unsatisfactory feature." Ws
confess our ctiollete inability to understand this
assertion. The question as to whether any kind
of business is "satisfactory" or the reverse, re-
solves itself into " has it paid? " and it is not neces-
sary to look further for an answer than to the fact
that the Rusaienl2,ooo,oool.loanot 1859,brought
out at 68, or 66} net, is now worth only 61
in the market. Russia is not dealing well or even
fairly with her old creditors in thus deluging the
market with new securities, each issue of which is
offered on reduced terms. Within the short
period of three years she has offered three sepa-
rate creations of stock, to the amount, respectively,
of 12,000,0001., 8,000,0001., and now
15,000,0001. Here is • total of no less than
25,000,0001. It is no wonder that the market
has been surfeited, and that a large portion of
the two first-mentioned loans, particularly of the
8,000,0001. Four-and-a-Half per Cent. Loan
of Messrs. RARING/I, remained unaubecribed. It
is quite • question for subscribers to Russian
loans to consider where this system is to end.
Does Russia mean to go on making an annual
appearance in our money market? There is cer-
tainly no new reassuring feature in her finances.
A disingenuous attempt has been made to repre-
sent the Loan of 15,000,0001. as though it were
for 10,000,0001. It is affirmed that 5,000,0001.
has been already " placed," and something is
hinted about the co-operation of financial estab-
lishments in Ramis. Let us at least have these
matters of figures cleared up, and no delusion
practised. It 5,000,000/. has been placed, wbo
has got it, and on what terms? Are the holders
under engagement not to sell it in the market,
say for • year or two, or are they free agents.,
privileged to get out of their investment on the
shoulders of other subscribers ? Are they even in
a position to make a profit by selling at a
lower price than an ordinary subscriber could
advantageously accept, by reason of their having
been treated exceptionally in return for
having taken • large slice of the loan t An ar-
rangement of this kind is evidence of weakness
rather than of strength. As to the co-operation
of the financial establishments in Russia,
which are all more or less under the
thumb of the Government, it is probably either a
mere expedient or an absolute deception. In fact,
such an arrangement would be antagonistic to the
express object of the loan, which is to draw specie
into Russia from abroad and counteract the con-
stantly unfavourable tendency of the exchanges.
It will be necessary, therefore, for subscribers to
reckon that all these schemes for the private and
special placing of a portion of the amount are
designed merely to veil the most objectionable
feature of the project—its excessive mag-
nitude. The entire loan will consist of one
article, and there is nothing whatever to
prevent the " financial establishments" of
Russia or the capitalists of Holland and Germany
from throwing upon our market any amount that
it will absorb. It must also be borne in mind
that for years past there has been scarcely any
market in London for Russian stocks, the great
outlet having been abroad, and that the magnitude
of the present creation renders it almost certain
that every market in Europe will be gorged, so that
the capacity of the continental Bourses to relieve
holders here will be effectually destroyed.
In fine, we would say, let Russia have the full
degree of credit which she has fairly earned
by her punctuality in observing her foreign
financial engagements, but let us discourage her
borrowing to such a magnitude and with such fre-
quency. At the root of the distrust of Russian
finance is the fact that the Government expendi-
ture is permanently in excess of its income, causing
chronic embarrassment and ceaseless issues of
paper, in consequence of which the proposed Loan,
notwithstanding its enormous amount, is really
but as • drop in the ocean of Russian necessities.

Her Majesty has intimated that it im her royal
pies-more to bestow the meant garters upon Lord
Canning, the Duke of Somerset, Loral Russell, Lord
Shaftemhury, and Lord Fitzwilliam.