The Portland daily press., 1898-01-04
RusslAs'5 JOURNEY TO GOLD.
How the Obstacles in the Way We're Sur
mounted.
(Walter Wellman in Chicago Times
Herald.)

4 I
| Herald.)
| When it was decided that Russia should
as soon as possible place herself upon the
| gold basis, her government and thinkers
went at the task in true imperial fashion.
| The first thing they did WAS to make
sure of their revenues. The ablest men
in the country were put to work devil
sing system which should produce all
the revenue needed not only for carrying
on the government year by year, but for
the accumulation of a surplus from one
basis the other. In pursuance of this
plan trained and skiilful men were sent
to all the leading nations of the world to
study their systems and to report thereon.
| This work was mapped out by M. de
| Witte, the minister of finance, who is
known in the field of monetary science
! and government finance. Among tine
agents sent out to make these investiga-
tions was NJ. de Routkowsky, who first
visited the chief countries of South
America and then devoted several years
to study of the United States. M. de
Routkowsky is still in Washington. He
has sent his government most valuable
| information concerning the revenue and
money systems of this country.
| Years ago Russia started in to accumu-
late hoard of gold. Her fiscal agents
were everywhere instructed to watch for
opportunities to buy the precious metal.
| h 5r,L ay in
| in Berlin. But their work was carried
on through such a long period, and was
SO skilifully done, that with all her accu
mutations and all her eagerness for gold,
| Russia never sent the price Of the metal
| to a premium. never caused a corner OR
scarcity in any market. 1t was Russia 8
policy to buy gold and then to leave it in
the hands of foreign bankers, as a credit
to be drawn upon, and the result Of this
| arsighted policy was gradual but sure
| growth, of Russia S credit in every tiDan-
cial center, and no shock whatever tosany
market by the rapid withdrawal of T.
large sum. 1t was Russia's demand for
millions of gold which she had left in
the hands of the Earrings in London that
precipitated the failure of that great house
and virtually caused the Bank Of Eng
land to suspend specie payments, though
the causes were elsewhere, and Russia's
action was only the result and a measure
Of justifiable self protection,
Russias policy of gold accumulation
was continued until from almost nothing
the stock Of the yellow metal on hand
grew to about $500, 00000 According to
the latest reports the amount of gold on
hand gives the Russian treasury me-
| tallic reserve of about 65 per cent. of all
| the paper notes outstanding. Under these
conditions the Bank of Russia, whic is
the only blank of issue in the empire, has
been able to achieve gradually a parity
! between the paper notes and the gold
coin, and the gold standard has been at
| tanned therefore, as the United States
some twenty years ago returned to the
| speeds basis without shock or disturb
| ance Another result of the far-sighted
and persistent policy of Russia is that
the gold standard is now attained with
out any risk of reaction or disaster. The
Russian treasury is in better and strong
er condition than that of any one or two
or three nations which have been On a
gold basis n long time. The Russian
system Of protecting it's reserves is in
fnitely more effective than that of the
| United States. ard one of the causes Of
greatest wonder to these Russian stu
dents of finance is that /. nation as great
as the United States, with all its adap-
liability and resources, should try to
founder along through the years with a
clumsy and hazardous system.