Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-09-04

which appears to govern Russian cabinet
councils. Such an abnormal development.
| largely by the aid of foreign capital and for
eign capitalists, has brought over-Specula-
ton in its train and raised the serious Ques-
ton whether foreign capital would not be
withdrawn in alarming proportions in ca se
Russia should plunge into war. The with
drawal OF foreign capital at the very mo-
ment when the government was seeking
new loans for war purposes would invite
financial CONFUSION and would upset the
laboriouS work of founding and strengthen
ing the gold standard. which has been the
browning achievement of the administration
OF NJ. de White.
Other finance ministers struggled for al
most hundred years to rescue Russia from
the slough of worthless money i'm which the
country was plunged from even before the
time Of the Napoleonic wars down to 1895
Serious efforts were made to resume specie
payments in 1917. 1899. 1860 and 1881 but
they failed several of these occasions
because of the serious wars which broke
out when specie resumption seemed on the
eve of accomplishment.
Recent Disturbances.
Signs that the Russian money market
was seriously disturbed have not been
wanting during the past year. A crisis
broke out on the ST. Petersburg bourse in
September. 1899. which it required the ut
most skill and efforts of the finance minis
ter and the large banks to check. The
ministry Of finance saw fit at an even ear
Her date to issue a warning against reck
less speculation, which admitted a sharp
fall in Russian securities Another state
ment was issued early in November. point
Ing out that the financial system was
sound. but vigorous measures were taken
to extend credit to those who were en-
barraSsed and TO create a syndicate among
the banks for the protection of the stock
market. The Imperial Bank was author
lied to open credits temporarily on the
pledge of securities without a government
guarantee and to rediscount commercial
paper for the private banks at 10 per cent.
The syndicate created to support the stock
market consisted of the principal banks
and bankers of st. Petersburg, who
pledged capital OF 100000 roubles (S2.-
S0OOO for the purpose Of buying certain
securities in order to prevent too sharp a
fall, resulting not from the real decline OF
the enterprises represented. but from the
throwing upon the market of securities.
even In small lots, at times when they
could not find immediate buyers" The
money required by the syndicate was adj
vanced by the Imperial Bank but under q
pledge by the members of the syndicate to
make good to the bank any losses by the
operation. The affairs Of the syndicate
were directed by a committee Of five men,
bers under the presidency of the governor
Of the Imperial Bank.
Drop In Russian Securities.
The effect of these disturbed conditions
upon Russian credit abroad has been con-
siderable. brussels, by reason OF the free-
dom of commercial transactions prevailing
there, has become within a few years a
great market for Russian securities of all
sorts. The capitalists Of France and Ger
many where stock exchange transactions
are fettered by high taxes and absurd re-
strictiOns, have poured their capital into
Brussels for investment. with the result
that where the issues of securities there
outside of government obligations were
only 26596.OO0 francs in 1896, they rose to
463, 09 900 francs in 1899 This develop
ment has received a serious check by the
recent fall in Russian securities at Brus-
sells. 4 calculation made by the editor of
des Interets Materials in the issue of June
10 last. showed that eighty-one classes of
Russ an securities quoted at 9SS. 51S,S15
francs in May, 1899, fell to 731, 1885, 80
francs IN May, 190-a loss of more than
- per cent in market value within year.
1t is obvious, therefore. that If the Russian
government should add the disturbing eff
fects of war to the risks of collapse al
ready encountered from ordinary economic
causes, much of the careful upbuilding of
Russian material interests during the last
six years would be undone. Foreign CAPT.
tai would cease to seek investment in Rus
sfa and in Russian securities. national |
leans could not be placed to advantage
abroad, the large gold stock of the treas |
ury and the Imperial Bank would soon be |
dtssipated for war expenses. specie pay I
ments would be suspended, and Russia |
would be compelled to make sacrifices for |
her economic life which would |
hardly be compensated by the most bril-
liant conquests in the orient.
CHARLES A. CONANT. /