The Press.
London, England, 1856-08-02 00:00:00

THE PRESS.

PUBLIC WORKS IN INDIA AND RUSSIA.
IN the course of the week two controversies respect-
ing some of the new railway undertakings have at-
tracted too much notice in the Money Market to
justify us in omitting all reference to them. One
had relation to the policy which ought to be pursued
in the construction of the several lines which are
projected for the development of the vast productive
resources of our Indian empire. Into the details of
this particular discussion we have not space to enter;
but it is enough to say that an exceedingly judicious
and practical letter from Mr. W. F. Fergusson has
been published to direct the attention of capitalists
and statesmen to the true merits of the question.
Mr. Fergusson strongly advocates the system of
guarantees ; but, as an equivalent, he suggests the
means whereby those guarantees may eventually be
superseded by the natural earnings of the lines in•
tended to be constructed. Mr. Ferguson is eminently
versed in Indian affairs; he desires to raise the con-
dition of the people, and to develop the manificent
resources ; and as he is a distinguished autho-
rity in these matters both commercially and
politically, his remarks are likely to be at-
tended with some benefit to India by turning the
attention of capitalists in the country to the rEturns
which may be derived from associated means for
promoting material improvement in the shape of
railway communication judiciously devised, assisted
by that sort of encouragement which it is the pri•
mary duty of the Government to afford in such cases.
Mr. Ferguson's views, we have reason to believe, are
meeting with influential support in the City ; so much
so that the simple publication of the letter referred
to immediately produced an improvement in the
marketable value of Indian railway securities.
The other subject of controversy had reference to
the Riga and Dunaburg Railway, one of the under-
takings which have been revived upon the return of
peace. In 1853 the Russian Government engaged
to guarantee the promoters, to whom the concession
of the line was granted, the annual interest of four
per cent. upon the cost, which was then estimated at
12,000,000 silver roubles. When the project was re-
cently revived in this market it was received with
much favour, upon the understanding and the assu-
rance that this original guarantee would be valid
with respect to the estimated cost of the line-
-12,000,000 silver roubles. The shares being issued
at 80 it was, equal to a return of five per cent. It
now appears, however, that the Russian Government
insists upon some modification in the terms of the
arrangement. They have discovered, since 1853,
that the line can be constructed for 10,000,000 silver
roubles, and therefore they decline to guarantee four
per cent. upon the nominal capital of 12,000,000
silver roubles. This is equal to a reduction of in-
terest of from five to four per cent.; consequently,
the value of the shares in the market is lower. The
subject is thus alluded to in the circular of Mr. Wm.
Avens, of 13, Tokenhouse-yard, issued this day :

Riga and Dunaburg shares are flat. The heaviness of
these securities dining the last few days has been caused
by the receipt of letters from St. Petersburg dated July
23rd, containing statements which, if they prove well-
founded, materially diminish the value of the guarantee to
be given by the Russian Government. The decree of May,
1853, granted a guarantee of four per cent. on the sum of
12,000,000 silver roubles, equal to five per cent. on the sum
required for the construction of the line. The Russian
Government, it is said, having now ascertained that the
line could be constructed for 10,000,000 roubles, has
refused to confirm its engagement upon more than that
amount. Hence, the guarantee has lost, in the eyes of
English capitalists, a considerable proportion of its value,
as it is only four per cent. instead of five per cent.; and,
unless it is restored in its integrity, there is but little pro-
spect of the shares recovering their former premium.