The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1885-05-02
Che nailg 8nllstiN.
SATURDAY, MAY 2, 1885.
RUSSIA ON THE VERGE OF BANK
RUpTCY.

hUPIG1.
The example of France in 1870
to the contrary Notwithstanding, it
is the nation that can fire gold as
well as lead that conquers in modern
wars. Herein lies the weakness of
Russia. OF lead she has plenty, and
of men and ships an abundance, but
in gold or credit she is lacking.
Her bonds have been popular of late
years because they pay 3 percent,
an unusual rate in the European
money markets, and, singularly |
enough, they are held in large guam
titles in England. 1t has been noted
by observers that the Russian bonds
were not so sensitive to war talk as
the English securities, which, while
paying but about half the interest
paid by the Russians, and therefore
regarded as the safer investment,
fell farther and more rapidly. This
tirmness was the sign of staving
off of war, to which conservative
people chung tenaciously. The finan-
cial condition of the Cars Empire
certainly will not of itself explain
the steadiness of the bonds. Dur
ing the last four years the financial
outlook of the Russian Government
has been something which we Ame-
ricans, puzzled how to dispose of
our surplus, find it difficult to rea-
lie. In 1880 the revenue of the
Empire was fG5, 102, 900 and the ex-
pcnditures eco ,451 900. The fol-
lowing year the deficit rose to fS,-
100000. No statistics since 1883
are readily accessible, but the deficit
still is large and would be vastly in
creased by the expenditures of 4
foreign war, especially one so likely
to be stubbornly contested rs Il
struggle for the golden prize Of
India.
1t is true that a despotism pro-
ceeds more directly to its point
than free government, because the
former has no public opinion to con-
ciliate; but even under a despotism
there is a limit to- the taxation a
people will endure; and the poverty
of the country, and the grinding
weight of taxes, are leading counts
of the Indictment which Russian
popular discomfort prefers against
the Russian Government. In a
great war, the spirit of patriotism,
or its substitute, national pride,
makes people willing to submit to
burdens uncomfortable in times of
peace; but the money with which to
prepare for war is what Russia
needs, and that money she finds it
next to impossible to wiring from the
Taxpayers or borrow from the
bankers. The great money lenders
look askance on Russia for the rea-
son that they consider her an ex-
hausted country almost on the verge
of revolution. In this dilemma
Russia feels all the bitterness of
being dependent on her great rival
for all the sinews of war. A writer
in London paper notes as an in
genious method of keeping the Rus
sian bonds popular the way in which
loans have been put on the money
market, small sums having been
borrowed in rapid succession, and
the "calls" comprehending very
limited amounts of several issues.
Thus an appearance of ability and
willingness to take up the deed is
counterfeited to the benefit of the
Car and the comfort of the investor.
, English investors are therefore urged
by the same writer to sell out theil
holdings of Russian bonds, as the
closing of the English money market
would leave the Muscovite loans
without refuge in Europe, the
Germans at present being disinclineo
to stock up any further. Should
!. war break out on the Afghan from
i, tier an unlimited issue of paper
money may float Russia through it
a only to accelerate the day of nationa
bankruptcy. But, as between {
nation paying 5 percent and ont
paying 3 percent, the probabilitie
Of success are in favor of the latter
. as borrowing the reader and payin!
the less for what she has to buy