The herald., 1896-05-02
Local, Eastern and Foreign
Commercial Dealings
WALL STREET SPECULATION
Rmssia's Efforts to Get Nearer a Gold
Basis
The Plan In Outline With English Comment
on Its Scope and Probable Effects-Ths
Local Markets Quiet

One of the sinks into which the gold
drain from the United States has gone OF
late has been the Russian Imperial pank,
Russia Is trying to get more nearly OIL
gold basis in the following manner:
BY the coming of new gold pieces whlcn
ruble-that is to say. a ten-ruble gold coin
which has hitherto been worth 10 rubles
paper will henceforth be made smaller SO
to equal ten rubles paper, no more anu
no less. Thus the currency OF RUSSIA pc
comes a gold one. as no more paper ~ .p
the exchequer, but only for its own COM
mercial purposes. as In the case OF the
Banks OF England and France, and then
only up to one milliard rubles on condition
that one-half of the amount so issued up 10
a, milliard be covered by gold, Old; ana nanad anat
BY bo its full gold equivalent. The old gold
coins, which are worth ruble SO kopecs In
paper, according to the latest decision OF
same in the new gold coinage until with
drawn, so that, according to the promoters
Of this important reform lane no one md VIII, nho iose
tions will remain the same until further
legislation. The paper will be taken for
and the State bank will receive $50, 900
In the new gold piece for the purpose The
silver, ruble Will be compulsory II re-
quired, between private persons only up
to fifty rubles. while the exchequer Will re-
ceive 1t to any amount. Only IN the pay,
ment of customs duties silver coinage VIII
not be received above one ruble until fur
ther notice"
The London Statist says.
what it (the Russian treasury really
is doing is simply continuing policy 1t
has been pursuing for several years The
Imperial bank of Russia is merely a depart
ment of the Russian treasury. 1t has no
shareholders. and therefore no paid-up
capital. For nearly half century specie
payments have been suspended, ana the
currency consists of notes of the Imperial
bank. Just before the outbreak of the
Russo-Turkish war the notes In -Sd circuao c1 Ia
tion amounted to a little over 100000 600
rubles, During the war there was an adj
dtional issue Of III, ,OOc, 600 rubles A couple
of years later however, the treasury order
ed the banks to Withdraw this war issue.
AS matter Of faet 1t withdreW VI the ;e great. a
instructed. and there still remain about
266, $50. 900 rubles of this issue. Lastly, dur
ing the late tie famine 6a there was as ANOTHER ts1
currency of all denominations amounts to
1.12l ,250,000 rubles. Gradually, the gov
ernment has been accumuating gold IN the
Imperial bank. AS our readers know. the
customs duties are paid in gold. and por--
tion of the various conversion loans raised
in France was also set aside to form great
war-chest. Altogether. Russia holds over
100. 900 sterling in gold. and or this
sum she has from time to time paid in por-
tions to the Imperial bank, specially allo-
eating these sums as a reserve against the
note issues. Now a ukase has been pub
lished ordering 15,0O000O gold rubles to. be
transferred to this reserve fund, which;
1t is stated. will raise the fund to total
of 600. 600 gold rubles. The paper ruble
is worth only two-thirds of the gold ruble.
consequently the SOC, 100000 gold rubles are
t out of the total OF liz, $50 900 rubles Of
notes there are only about 371,250, 900 OF
rubles uncovered by gold. It is undoubted-
peaceful country. devoting herself TO the
DEVELOPMENT of her resources and care
fully abstaining from adventures abroad,
she would clearly be able to resume specie
payments now-indeed, she could have
done so years since.