Wichita eagle. [volume] (Wichita, Kan.) 1886-1890, 1888-12-15
THE RUSSIAN LOAN

| PARIS. Dec. 14.-Since the national sub
scription to cover the German indemnity
/ of 1871 there has not been such spontan
eousl enthusiasm on the Paris bourse a:
was witnessed on Monday when 100, 900, 00(
francs of the new Russian 4 per cent loan
was offered and 350000,0O0 subscribed
Financially the loan is an undoubted
success, but it is difficult to over
estimate its political Importance
Russia would develop her mil
itary power and France responds
France gave money in 1871 from patri-
otism She gives money again in 1883. foI
what? Is it revenge? The most abso-
lutte monarchy in Europe asks, and only
the most democratic republic in Europe
lends he money. NJ. Fioquet announced
the subscriptions to the council Of minis
tiers yesterday, and with great satisfaction
alluded to it in private conversation as
the financial enfrapchsement of Russia
from the Berlin banking monopoly.
l saw diplomatic parsonage yesterday
familiar with the Inside history of the loan.
He gave me these facts in brief: Last June
representatives of Compton d'Escompte,
of the credit lyonnaise and other financial
institutions of France. with several private
bankers. suggested to NJ. Nyshnira dsky,
the Russian minister of France,
the debt and floating new
Russian loan in Paris. Nyshniradsy re-
ported this to the car, who viewed the
project with favor. At this time the rou-
bic was much deprecated, and the move
ment was not considered favorable. With
the rise of the rouble the scheme became
practicable, and was put into execution.
The advantages to Russia are many 1t
frees her from the financial tutelage of
Berlin. Hitherto all the Russian loans
have been fioated and owned largely in
Germany. This fact enabled Prince Bis
marck to put direct pressure on the
internal affairs Of the Russian empire.
by lowering at his will the price Of
the rouble. The Iron Chancellor could
thus practically prevent Russia making
war He could fan social discomfort IN St
Petersburg, Moscow or Odessa. He could
intiict losses of millions upon the car 5
private fortune and the Russian treasury.
Lately the German bankers have unloaded
their Russian bonds upon the market in
the vain attempt to again depreciate
the rouble. These bonds have
so that the great bulk of the
loan is now owned in France. | talked
with several bankers about the loan, and
asked the senior member of the firm of
Jordon & Co. why England, Germany and
other countries did not take the loan. He
replied:
'On general principles. Since their war
England has had little as possible to do
with Russia. There is nothing specially
attractive TO the English investor in per
cent bonds at Sc. They find uses for their
money more to their liking in the direc-
ton of the Argentine Republic or else
where. As for the United States as long
as the railways here pay good dividends,
and until the national debt is consider
ably decreased, thus restricting the now
excellent field for investment there is no
reason why American capital should 20
abroad"
Other brokers spoke cheerfully about the
loan, and with pardonable pride at the
quickness with which it was covered. The
class of investors are not servants
and conciergeS, but petits, renters
and people OF moderate means, who
are accustomed to lay aside every
year a portion of their incomes in sound
investment. Other nations hesitate to
negotiate loan in France on account of
the enormous expenses connected with the
undertaking. \ heavy. tax goes TO the
treasury syndicate of banking houses
which managed the loan, bought the bonds
of the Russian government at about s.
and put them on the market at 81. De-
Quoting expenses, the profits are about / ,
DPr cent