The advocate., 1892-01-06
THE sUB.TREAsURY IN russia.

Through the courtesy Of che National
Economist l am permitted to send you
the following interesting matter:
GOVERNMENT LOANS IN RUSSIA.
In obedience to instructions from the de-
partment, have prepared the following re-
port upon the system now in practice
in Russia of making advances on
farmers grain stored in warehouses or de-
hvered to the officials Of the several rail
roads in the country. Inasmuch as the rules
and regulations touching this important
question are not published for public dis
tribution, am indebted to the imperial
ministry of finance for an official CODY of
the claws Governing Advances ON Cereals
on Account of the Imperial Bank of Russia, {"
from which have been courteously per-
mitted to make the following summary for
che use of the department:
/. Advances on grain may be made by
any railway company authorized by the i'm
perial ministry of finance.
2. The amount to be advanced is in direct
ratio to the prices current for the cereals at
the nearest market place, and must not ex-
ceed go per cent. of the value of the grain as
thus estimated. In case the loan is granted
for period of six weeks or less, an advance
of 80 per cent. of the estimated value may
be obtained.
8. The rate of interest on these loans is
Rxed by the Imperial Bank, and is usually 6
per cent, varying, however, little from
this rate according to the condition of the
grain and the nature of the security. This
interest is paid in advance for the length of
time it has been actually granted.
4. In addition to the regular interest, as
above stipulated, the borrower is charged:
(a) 2per cent. per annum for q sinking
fund, but the percentage for the sinking
fund must not exceed one-third of per
cent. of the total loan; (b) a sum not ex-
ceeding one-third Of per cent. as remuner-
alton to the railway company for the trouble
Eyof negotiating the loan.
nb s. Loans are granted usually for six
months, or without fixing the time in ad-
janice, but loans may be made for longer
period, as the necessity of the case demands.
lin the latter case the loan must be settled
U~at later than one year from the date there
! eB. The owners of the grain stored in the
ar rehouses, or their legal representatives,
Pre entitled, under the control of the rail
ylway company's agent, 70 inspect the grain |
from time to time, and to take measures in |
korder to protect the same from being dam
Aged, or to demand that such measures be |
ytaken by the railway company on their ac-
Acount. In case of need, the railway COM
Pany may take these measures on account
bf the owner, without being requested by
athe owner, and charge the expenses thereof
ITO the owner.
I z. The natural loss in weight resulting
tirom the above operation is fixed by the
regulations issued by council of officials
. lppOinted BY the several railway companies.
q 8. The grain is returned by the railway
bompany on repsying the advances made,
and other charges, as mentioned above.
= 8. If the sum advanced is not repaid
9hen due and there is no good reason to
rant an extension, the grain is sold by the
hilway compay at public auction.
10. Such sale may be made imperative
Iifnder the following circumstances and reg
! latiOns: (a) Ifthe stored grain shows signs
" being irreparably damaged; (b) if the
fear Is entertained that the value Of the
grain in warehouses cannot cover the
charges for storage, the amount advanced,
and other expenses. The receiver Of the loan
must, in all cases, be informed at least
seven days in advance Of the date Of sale. I
IL The railway company, after deduct q