New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1854-09-29
RUSSIAN FINANCES.


recently published researches into the present
fnsncial condition of the Russian empire, which afford
the most instructive materials we have seen for
rect appreciation of the Of that State and
consequently Of the effects of the contest in which
are engaged Sooner or later il VIII be BY the fnan
cia exhaustion If the enemy, and by the disasters
caused by this war throughout the empire, even more
than by the brilliant military ard naval exploits which
now excite the attention of the world, that mast
hope 10 subdue the stubborn pride OF the Car anu II
is quite useful and important TO ascertain the poSer
Of resistance OF his treasury and hs banhs a. 10 sound
the psssage Of CrOnstadt TO calculate the TALL Of
SeysstopOl. We therefore. need no apology for
placing the results OF NJ Fauchers lsbors a; this time
before readers.
There is no doubt that from the encement of
1883 the Russian Government had begun seriously to
prepare its financial resources for great struggle.
The sums il bad placed III the public stocks of En-
gland and France Withdrawn; the loans negotl-
afed in former years paid up; Treasury bills were
issued to IL It the current and the export
Of the precious metals was prohibited The ordinary
revenue of Russia is commonly taken at about
f24 COO 600 sterling though the HonteHr has stated
II Ia amount 10 a. much a. $50 0O0, 900, which we
think an exaggeratOn. But at any rate the elect of
the war must have been to abate the proceeds Of the
Customs and the Excise. and the ordinary revenue
cannot now exceed t25 00O,000 which does not
cover the usual expenditure of the country. The
Government was, therefore, Immediately compelled TO
resort TO extraordinary resources Something, pro-
badly remained in hand of the loans contracted after
the Hungarian war, under the name OF railway
loans; Is 600 900 sterling taken from the
stock of bullion, which Is the basis of the paper
circulation of the empire; 1900 900 sterling Of
Treasury bills issued loans accepted from
various public funds, from the clergy, and
from charitable trusts; and when the attempt Of the
Russian Government to effect further loan i'll HOl-
land failed forced loan under the mendacous title
of voluntary contribution, was levied on the ma
ton. This burden fell with great weight on the land
owners because they already suffering severely
from the inordnate amount Of the military cOnscrip-
ton and at the same time great part OF their agrl-
became unstable. NJ. Eaucher
COMPUTES the return OF these extraordinary resources
in the last eighteen months at E2s. 10000 ster-
ling or about double the ordin iry revenue of the
empire. So far the Emperor found himself in
Possession of very large funds to meet the imme-
diate demands of the war but he had to call out and
equip immense numbers Of recruits, 10 arm his Tor
tresses from aplsnd TO the frontier of Georgia, and
10 uroyide for The wants of enormous bodies OF troops
in melton. The state of the Russian prisoners amply
shows how miserably the personal wants of the sol
diers have been provided for though their arms and
euqrmen are good and their military stores abundant
But the extraordinary means which have been en-
poy ed to raise these funds at the outset of the war are
rot of nature io be repeated nor IL II possible nat
they should keep pace with the current expenditure
To support this contest Russia needs TO add sum OF
at least $50 600 900 sterling TO her annual revenue
or in other words nearly TO double H. She has done
il this wear but does any one imagine that the hus-
sian Enpire shut out from all chance of foreign
loan with its ports bockaded and its landowners
pauperxed can continue for series OF years to make
similar effort We certainly do not believe 1t to be
possible.
But the direct expenditure Of the Government
forms only part and probably not the most embar-
RAISING part of this question: The funded debt OF
Russia is small not exceeding 400 DOC, 600 SILVER rou
bes or about eco 900 900 sterling but this
views a very imperfect notion OF the actual liabilities
of the State. The tendency of the Russian Govern
ment to extend the system of absolute power over
every relation of society and private life mas haa me
effect of involving it TO extraordinary degree 10 all
kinds of transactions in private property mus the
State is practically the universal mortgagee OF tue
Il So - az gDyla
nearlv half the serfs in Russia-are held in pawn by
the Lombards. a great land and banking company,
guaranteed by the State In ordinary times the
State forecloses these mortgages with advantage
on the failure Of payment OF interest; but, at the
present time, when the Impoverished landowner Is
peculiarly unable 10 meet this obligation, tne otfe
is in 10 condition 10 extend us uomails'
This however is the smallest portion OF the dfhculty.
NJ. Faucher states that all the great establish
ments Of credit in Russia are directly guaranteed
by the State which receives their deposits. Thus
the loan-banks the Commercial Bank, the Lomoards,
the savings banks, and even the puDhc charlnes OF
the Empire all deposit their funds with the Govern
ment and have right to resume them on demand
The amount of these deposits was officially stated by
the Russian Minister of Finance on the lst OF Janu-
ary 1883 10 be no less than the amazing sum OF
500 600 OOO roublee, about 900 600 sterling
These funds are supposed 10 be placed by the GoV-
eminent in advance 10 the landed interest ana con-
stiiute the loans represented by the oOOOOOO sers
If this were strictly the case, the Government w0ud
be in the awkward position OF bank having 10 meet
large liabilities TO pay with no resources out thosc OF
real property but the presumption Il, that al least
some considerable portion OF these FUNDS mas Deen ap
Piled by the Government to lis own uses: mus the
hanks and their customers, and the public treasury,
and the landed interest, all involved III one con-
pected system which may prove at any gwen moment
q vast insolvency. The pressure OF the war mas oi
course increased the pressure OF private customers
on the banks; the banks in their turn press on the
State; and if any large proportion OF the enormous
debt Of $3.50 600 COO was demanded as Is no.
able IL is utterly impossible in the present crcun-
stances of the Empire, that such demand shoul1 De
met except by an issue of State paper Inns expert
ment has been tried repeatedly on shauer scsle,
and its result has always been bankruptcy. Before
the war the metallic reserve OF the Russian tIO'efn
ment was undoubtedly one Of the largest IN EuioPs
and exceeCed go coo, OCO; but the NaIue oi uiS
notes in circulation is at least 80 OOO, ana WINE
the bullion is decreasing The issues OF paper
In reality this reserve which affords the only me ans
of prom pity meeting the financial haolhues OF Tue
Government ought in case TO be coniouhue9 WI
the resources for the and II Is be devo'eu
purposes the result will be the same as IL te pl.sn
Government 10 spend the gold now IN inc eeas
of the Bank of England, and al the same uuie
the issue of the bank notes.
IL this be correct statement OF the financial con-
dtion Of the Russian empire, when We hs,e ie:
10 believe that il is, we concur with NJ fAuouo, y,
his conclusions that such state OF things cannon as'
very long The Emperor Nicholas, in engaging IN
This war succeeded by extraordinary measures ana
by every sort of appeal to the patriotism ana ianas
em of his subjects in doubling his revenue Tor one
! wear IT. instead Of yielding, he should prepare 70
meet the cost of a second campaign, he Will De com,
able character and more harsh application sucn as
incontroyertble payment and forced contributions.
! With the certainty OF National Bankruptcy staring
| him in the face.
| SPAIN.