St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-12-13
,HE RUSSIAN SYSTEM

The RUSSIAN SYSTEM.
1t is not probable that the subtreaSury
scheme that seemed at one time to be
bewildering many of the usually clear
headed. farmers of the Alliance was,
like the grippe, imported from Russia.
Possibly few have understood that
similar measure was in operation in the
dOminions of the car. 1t may be con-
ceiyed that the thing took form IN the
active minds of its American champions
somewhat spontaneously and without
reference to the system that was full
blown in Russia. In a recent magazine
article MARK Twain accounts for the
birth OF great and identical ideas
in various unass0ciated minds by
O sort of mysterious cOntagiOn.
Still, while no credit is due the
Russian economists for the aD-
pearance Of the cOncOctiOn or this side
OF the water, some interest may be
taken in the practical operation of the
scheme under the direction of the most
centralized government of the reputed
civilized lands. 1t may be remembered,
however, that the conditions are widely
different in the United States. In Rus
STA the people are the servants of the
government, while in the United States
the government is, in theory, the servant
of the people. Consul General CRAw-
FORD, at ST. Petersburg, has recently
made report to the state department,
copying the law ''gOverning advances
on cereals on account of the I'm
perIal Bank of Russia" and detailing
its operation. The railway companies
are under control of the government,
and are made its agents in the opera
ton of this scheme. They are required
to loan money to the farmers at per
cent interest. on the delivery of the
produce, on account of the Imperial
bank and with the authority of the min
lister Of finance. Ample provision is
made for the security of the railways
and the parties behind them. On a
short loan, six weeks or less, the farmer
is given 50 per cent of the market value
of the produce, and for longer time
transaction, go per cent. The railroad
company has a small commission for its
agency. Should the loan not he paid
when due, and there is not satisfactory
reason for asking an extension,
the produce is publicly sold The
grain may be inspected from time to
time by the owner to see that it is prop
erly cared for. or the railroad may take
any needful measure for its protection
and charge the expense to the owner. If
the grain IS not keeping well, or the
market is falling so that the value is
likely to be less than the advance and
all Incidental expenses, the company
may make the public sale. No lien on
the grain is considered until all charges
i'll connection with the loan are met.
The railroad is responsible to the bank,
and is brought up on sharp turn pc
culiar TO Russia if there is any de-
linquency. The transaction Is not
necessarily with the farmer. The
owner OF the grain may be
middleman. No inquiry is made
as to this point. The consul says this
law has been IN active operation
throughout the empire since June, 1888,
and is very popular with the farmers.
Under deSpOtic government the habit
of serYility SO permeates the general
life that almost any action of the gov
eminent oStensibly in its interest would
be accepted as a benefaction. As the
system has been III operation less than
three years, the real merits of it cannot
be determined from its practical opera
ton. If the parties with whom the
grain growers have to deal were scrupu-
lousy honest and faithful, it probably
would have advantages for the ignorant
peasantry in The way of protection from
the rapacity of the upper classes. Still,
the farmers have 10 appeal from the
agencies of The railroad and govern
ment. 1t is good fortune for them if
they are able TO hold much of anything
from the products of their labor The 6
per cent is three times what the ALI
ance people propose to pay The ad-
vances by the bank are Of paper cur
rency, not redeemable, and fuctuating.
It has certain basis, but Will depreci-
ate as the country becomes flooded with
it. Ten or fifteen years later 1t can be
better determined now the system
works. Almost anything originating in
Russia may be studied a long time be-
fore ii is accepted as a real reform.