The Portland daily press., 1898-01-04

The chief difficulty with which the
russians had to contend was the gree5
instability of the rate of exchange. ms
had a bad influence upon Russian com
Derce. There was speculation in the
ruble, and many commercial disasters
were directly attribute BILE to this cause.
Five years ago the minister of finance de-
termtned to put stop to speculation IN
money ana as nearly as possible to the
| nuctuation in the rate of excahnge. TO
carry out this purpose two measures were
adopted, as follows:
by An order to the Russian exchanges,
forbiddlng the making of tho differences
IN gola value, and ordering a statistical
DUTY Tor sdlscouDts of the ruble moving
across the frontier, reinforcing super
vision of stock exchanges, and restrain
ing the banks from exporting rubles for
speculation.
| "A measure for the satisfaction of the
demands of foreign bills OF exchange and
proposals for the same, if they really were
necessary for the purpose of commerce.
Inc large amount of gold lover $40, 000.
0e0 rubles accumulated by government
treasury and by the government bank be-
tween 1880 and 1880, and which has since
increased still more, offered the possiblli-
| fy of establishing the stability of the rate
OF exchange.
| At first this attempt to control fiscal
AFFAIRS by direct power Of the government
| was not well received. 1t was thought
| the government was trying to overturn
natural laws, and that the effort must re-
suit in failure. But the SEQUEL shows
that M. de Witte was really working in
| accordance with natural law, and that
the promised establishment of "a money
| standard in sympathy with the standard
OF the most enlightened and greatest
commercial nations gave q promise for
The fufUrA which fpH rnnfidnnrn
and gradually brought about better
condition. After the adoption of these
measures the rate of exchange showed
less and less fuctuation, and finally the
tuctuation fell to such low limit that
tt.did not affect the value of the paper
ruble, and was no greater than the rate
of exchange between countries with u
metallic currency.
In 1890 tho fluotuation of the rate of
exchange In comparison with sterling
exchange was 10 per cent, and in 1891 1T
was 2S per cent. But in 1892. after these
measures we've put IN force, 1t fell to less
than per cent, in 1898 to 6 per cent,
ia 1894 to less than per cent, and in
1895 to one-half of per cent. In the last
named year these conditions of greater
stability were secured Notwithstanding
| the events of great political and CONNER
clal significance, such as the temporary
/ Interruption of commercial relations be-
tween Russia and Germany, the death OF
the Gar, the war between China and
Japan and other foreign complications in
which Russia was directly or indirectly
interested
Having satisfied themselves that the
| stability of the ruble could be protected
IN behalf of Russian commerce, the next
step in preparation for the gold standard
was to wipe away such obstacles as stood
IN the way OF the circulation of gold
currency. By an imperial order, sano-
toned by the Gar in May, 1895, con-
tracts were authorized in Russian gold
coin, aud duties were made receivable in
gold. The government bank and it's es-
adjustments were permitted to buy, and
most of them to sell, gold coin at fixed
and published rates. Certificates of de-
posit on gold basis wer authorized and
regulated, and such certificates were is
sued In August, 1895. Excuses We're re-
were required to receive gold coin for all
kinds OF payment. To meet sudden de-
mands for currency with which to move
the crops in the autumn the government
put out, not paper. but gold coin, which,
however. was convertible into paper. In
these ways sthe people Of Russia were
gradually faniliarized with the use of
tically been on gold basis.
AT first the people did not like the gold
Even the merchants were not inclined to
take it. They had been accustomed to
silver and paper, and they did not under
stand the new money. They were afraid
its value had been faced too high and
that it would depreciate later on. Its
value in comparison with silver was SO
great, weight for weight, that the people
were incredulous. AT first men who &C.
cepted gold did SO with an agreement
that they would be permitted to return
it at the'same price within q specified
time. But in a short period this mistrust
disappeared. and gold coin is now COM
mon enough in Russia. The gold an
dard has been attained, the violent fuc-
tuatton in the rate of exchange has been
stopped, and greater stability is apparent
in all monetary. and commercial opera.
tions.