The Sun.
London, England, 1856-10-30 00:00:00

RAILWAYS IN RUSSIA.

(From the Times' City Article.)
Full statements from St. -Petersburg respecting the
Russian railway concessions just announced are looked
for with considerable anxiety. The hope is that the
terms may be found inadequate to float the shares in our
market, and that it will be necessary on the one hand
greatly to diminish the sum demanded, and, on the other,
to increase the guarantee. It may be presumed that tbe
total.of nearly,4o,ooo,oooZ. sterling*contemprateit td. be
spread over several long intervals, but even if 'those
should extend to 10 years the drain would create a
chronic pressure sufficient to produce many disagreeable
consequences. Supposing only 5 per cent. caution
money to be exacted on the whole amount, about
2,000,000!. would at once be drawn away to lie in the
citadel of St. Petersburg and form the nucleus of a new
collection of bullion to repair the exhaustion of the pre-
vious stock occasioned by the war. That such a condi-
tion even as this can have been acceded to at the present
moment would appear scarcely probable ; but, after what
they have witnessed, and the notification only a few
days back that the Credit Mobilier, in the midst of all
the mischief it has caused, has just contracted to con-
struct a new Spanish railway, the public would not be
surprised at any results to which the competition of
eager speculators might lead. Hence, although it may
turn out that the engagements entered into have been
of a much more guarded character than would appear
from the bare announcement of the concession without
the qualifications by which it may be accompanied, it is
right that the vigilance of the public should meanwhile
be awakened.
The annexed communication on the Russian railway
scheme embodies a protest against it which wiil harmo-
nise with the views of many prudent persons. The writer,
however, greatly overrates the power of the press to
prevent the public from rushing into such contracts. The
only question will be what premium should the terms
offered command, reckoning their value according
to the present market price of Russian stock. If it ap-
pears that the investment will certainly pay 5 per cent.,
then, as Russian 5 per cent. bonds are now at about
107, it will be readily taken by all who can get it, and
any expostulation would be as ineffective as an attempt
to induce a merchant not to import corn at 70s. when it •
is saleable in Mark-lane at 80s. All the Times can do is
to urge the public, before they commit themselves to
new subscriptions based upon existing quotations, to I
satisfy themselves that those quotations are', legitimate,
and likely in the long run to be permanent. Let them
consider whether, in the event of peace being maintained,
the absorption of capital in great works all over the
world is not likely to present opportunities for invest-
ments as secure and more attractive than a RusSian
guarantee of 41 or 5 per cent., and next, whether the
prospect of peace is so certain that it is not necessary to
allow any great margin for the opposite contingency.
Let them recognise, moreover, that since in a general
sense the idea of railways in Russia proving commer-
cially profitable is as yet nowhere entertained, the gua-
rantee is all they will have to rely upon ; that the pay-
ment of this guarantee will upon every condition as to
the mode and time of construction having been ful-
filled to the satisfaction of the Russian Government ;
and that the magnitude of the contract takes away
the inducement to that liberal treatment of all
open points which would be probable if the amount
already subscribed were not sufficient for the entire
length of railways intended, and a generons course
were necessary to insure the practicability of getting the
remainder. The fact that while an affair of this descrip-
tion is pending, every device is employed by govern-
ments and their agents to excite confidence and give a.
fictitious value to their ensthrrsvcaritiwir-miso im-
portant. When a government wants advances of any
kind it breathes nothing but friendly political senti-
ments. It is further to be remarked that one great
cause of the high prices Russian stocks have of late
years attained is owing to the predilection for them on
the part of the capitalists of Amsterdam, and that,
although this influence on a limited market has hitherto
proved powerful, it might be comparatively weak after
the creation of additional liabilities of 40 millions,
to say nothing of direct State loans which are cur-
rently reported to be much needed, and which would,
perhaps,'--not be long delayed after the railway sub-
scription lists bad been fully filled. On the subject
of the facilities these railways will afford Russia in
future aggressions little need be said. It is impossible
not to apprehend that, while railways in other coun-
tries rapidly diminish all tendency to warfare, the con-
trary prospect must in the case of Russia be taken into
accoiipt. Happily, as respects the danger of a non-ful-
filmfflft of the guarantee during hostilities, such a result,
although disastrous to the shareholders, would not be
so to the world at large, since no State can venture on
repudiation without destroying its power ; and the mo-
ment Russia ceases to pay her dividends she will also
cease to be a cause of political disquietude to other na-