The herald., 1898-03-28
CONDITION OF RUSSIA

A few weeks ago Russian editor was
reprimanded for forestalling the Omcial
Gazette by retailing the rumor that the
financial estimates for 1898 would show
deficit Of 100000 rubles. The actual de-
felt, a. now shown by official figures, is no
less than 106, ,2sl, ,7O6 rubles out Of q total
budgetary sum of one milliard and half.
With an expected excess Of II. SIS. 0o4 rub.cs
| Of ordinary revenue, there are S.Soo,0oo
rubles Of extraordinary income with which
to meet 12s,964.7 TO rhbles Of extraordinary
expenditure. Compared with the>esti-
mates of 1897, an increase Of about 1900 900
rubles in ordinary revenue and 66,0000D
rubles in ordinary expenditure Is forescen
during 1885, Therefore all the weight Of
| the budget this year falls upon the ordinary
revenue assisted by the savings In former
years In order to cover up the above men,
| toned deficit. But this deficit, with the
| 50, ,000, 900 rubles increase Of the Russian ma
| tional debt during last year for the state
purchase Of railways. represents for the
most part productive and remunerative
outlay on railway construction and equip
ment This Is theoretically correct, but
some years will have to elapse before 1t is
| all refunded, especially in the case of tho
Siberian railway.
The extraordinary and unprecedented
activity In all railway work may be esti-
| mated by the fact that no less than 2790
versts. or about 1860 miles, OF new railways
were opened in 1897, and by the following
| figures of the present extraordinary
budget: For construction Of the Siberian
| railway without rolling stock, 37.447Os0
| rubles; for enterprises auxiliary to the
| Siberian railway. 71S,3e3 rubles; for con-
| struction Of other railways Of general i'm
| portance. 5.5e5. 1877 rubles: for construction
of local lines. 100000 rubles, and for roll
ing stock, 49. 234,145 rubles.
During the last ten years the total ex-
| cess of ordinary revenue over ordinary ex-
penditure is reckoned at 467, 500. 900 rubles,
there having been a minus-of $4,000. .0G0
rubles-only once, in 1891. on account OF the
| famine. To this circumstance Is attrib-
| uted Mr.. Whites ability to meet deficits Of
extraordinary revenue, as in the present
estimates for 1898 without always having
| recourse to borrowing. Mr.. Whites finan.
cial report to the czar this year is not, how
ever, without a certain tone Of pessimism
| in regard to the effects Of last years bad
harvests, and the not very favorable in
dications for the crops of the coming sum-
mer. With about 22,50o00 tons Of wheat
and oats and 125O0;0oo tons Of potatoes as
the estimated product of last years har-
vest, NJ. Witte considers this enough for
the needs Of the population, but not suff1-
cient to give the usual surplus for export.
He therefore warns the council Of state
that the influx Of taxes during the ensuing
! twelve months may not be very abundant.
although he calculates that the usual ex-
port of grain ought to be kept up by means
of the large stocks known to have been held
| in reserve up to the date of the last har-
| vest.
| The expenditure Of the ministries Of ma
rine. Of war. of agriculture and of public
instruction are respectively increased by
100000. 100000. 10000 and 9O0, 900 rubles
In spite of the agitation all over the country
for more education and more schools, the
educational department still has only u.s.
10000 rubles, as compared with S55, 900, 900
spent on the army andInavy.
The minister Of finance expatiates at
great length on his monetary reform and
the creation of gold standard "similar
to the English pound sterling" whereby
the ruble is no longer fluctuating, but
a definite unit of value, whether in gold,
silver or paper. There is some little diff
Guilty in getting population, too long ac-
customed to paper to use gold, but this he
proposes to get ever by gradually with
drawing the paper notes Of smaller values
and eventually restricting the legal tender
of silver. which has now become a mere
auxiliary token to the gold ruble. As re-
CARDS the question Of bimetallism or mono
metallism, Russia has thus come to a de-
cision which is 'irrevocable." At the end
of 1897 the paper in circulation was $685.
900 rubles. or less by $4,000 900 than at
the end of 1896 and the gold Of the ex-
cheQuer and state bank was 1875 O00, 900
rubles, or more than at the end Of 1896
by 231 900 rubles. It will thus be seen
that Russia now has 131 per cent more
gold than paper. Confidently believing
in the continual development of the eco
nomic strength Of Russia, the minister OF
| finance hopes that the reformed system
of currency will not be shaken. even in
case the country is at any time fated to
undergo severe trials"
| Referring to foreign affairs as one among
other factors likely to affect the monetary
system, NJ. Witte further says: 'In this
respect the chief security for the economic
and financial welfare Of Russia is the ira
ditional peacefulness and the righteous pol
10y of her emperors. The example of the
late Emperor Alexander III and the SIN
cerely pacific intentions of y6tr IMPERIAL
majesty constitute guarantee that the
external policy of Russia will continue to
be foreign to all aggressive aspirations as
regards other states for the good of the
fatherland, and that no danger threatens
our economic and financial condition in
| that region Of affairs"
| The total value of the new currency in
| Russia at the beginning of the present year
| in possession of the exchequer, in the state
| bank and in circulation was: Gold, 1,470,-
5000 600 rubles silver, 162, 100000 rubles, and
| paper, 999, 900 rubles, which figures, says
M. Witte, show better than any other pos
sibIe explanation the complete security of
the exchange of paper for gold and the sta
| biity of the reform. The minister also
| iterates his intention of maintaining the
protective system intact. in spite of the
agitation which has been carried on in
certain organs Of the press ever since the
exhibition at Mini Novgorod for some re-
FACSIMILE