Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-09-04
AN ANGEL OF PEACE
Why Russia Appears in That Some
what Unusual Role.
WAR NOT 10 her INTEREST JUST NOW
Energies Devoted to Building Up
the Empire.
MINISTER DE WITTE' SLABORS

The appearance of Russia as an angel Of
peace in the negotiations regarding China
while somewhat surprising TO the general
public is not great surprise to those who
know the hidden springs Of Russian dplO-
macy and finance. The present course OF
the Russian government is far from being
an indication that policies of territorial eX-
tension and military aggression have been
put aside; 1t Is simply an indication that
the heads of the Russian state believe that
more is to be accomplished for the present
by waiting than by fighting
The far-sighted policy which led to the
proposal of disarmament by the two
years ago was directed toward strengthen
ing the economic and financial resources of
Russia. Until she is strong enough to cope
with any foreign power in the orient Rus
sian statesmen propose to devote the encr-
gies of the country far possible to
building up rather than tearing down. The
| proposed disarmament was expected to
afford an opportunity for diverting a part
| of the resources of the country from mill
! tary equipment to industrial development.
| with the ultimate view Of making the
country a stronger and more enduring
fighting machine than ever. What Russia
can gar in the meantime by bold diplomacy
at the court of Pekin elsewhere she will
continue to strive for, but she will not
/ invite war with Japan, Great Britain. the
| United States any other power until
the comprehensive plans of the finance
minister. NJ de White. have placed the
| country upon a firmer Industrial and finan-
cial basis.
Minister de Whites Task.
| So much has already been accomplished
within the last eight or ten years in the
| direction Of Industrial development that 1t
! is not surprising that the Russian govern
ment desires to continue the work instead
of having it interrupted by the waste of
! war. Nj. de White set out only a few years
ago to make Russia a great industrial ma
! ton. One of the first steps taken was the
abolition of rredeemable paper money and
the establishment of the gold standard. He
accumulated a gold reserve which reached
nearly $500 OO0OO0 at the beginning of 1879.
| authorized special gold contracts and gold
accounts at the Imperial Bank, issued gold
certificates and finally in 1896 and 1897 be-
gan paying gold for paper at a fixed rate of
exchange. These measures Were intended
primarily to invite foreign capital into Rus
STA. Large amounts of such capital had
/ been obtained directly by the government
by the payment of gold interest on its
bonds. but 1t remained to attract private
capital into industrial enterprises by giving
stability to the metallic standard in which
contracts were expressed and the values
of products were measured. Rarely has
calculation Of this kind been succeeded so
promptly by the desired results. Foreign
capital began pouring into Russia the
moment the gold standard was in success
full operation. Within the five years end
ing with 1899 more than :sW.OW.0O0 rubles
ts1J6,010.0oD invested directly in for
eign enterprises in Russia and the secur- |
tiles of Russian stock companies and for |
eign companies doing business In Russia !
found wide market in Paris, Brussels and |
Berlin.
Increase In stock Companies.
A striking Idea of the rapdity Of indus |
No. a6 tNxyl
the increase In the incorporation of stock
companies The total organizations Of such |
companies in the hundred years ending |
with 1899. not including banks and rail-
ways, represented capital oe 2.3S3. 0O0,OO |
rubles ts1 22s, 600 COO. The capital of COM
panies which are still active or In process
of organization Is about 1.SOO, Co., 900 rubles
(S936 600 OOO). and of this large total nearly |
two-thrds represents the interpretations OF
the last five The issues Of capital
were only 25 202 600 rubles in 1882. 81. lib. 900
rubles In 1893 and 80 $4,000 rubles In 1884.
The record of the last five years has shown
progressive increase at the following rate:
1895, 1293630OO rubles; 1896, 232. GAG 900
rubles; 1897 go, 424, 900 rubles; 1893, 1885,
237. 900 rubles; 1899. 35S, 354.s12 rubles.
These figures are in themselves remarka-
activity which have followed the adoption
of the gold standard under the fostering
care OF M de Witte within the last few
years.
Other evidences of the upward movement
are afforded by such items the increase
in revenue from the patent and additional
taxes from %, S34, $50 rubles ($15. 600. COO, in
1897 to 46, .0Co rubes in 1897 and As, 1877
400 rubles in 1898.
Development of Railways.
The development of the Russian railway
system under state control has come chiefly
within the last thirteen years and largely
within the last half dozen years. Much Of
the debt which Russia has incurred has
been on account of increased railway equip
ment. A publication recently issued by the
government showed that the product of
public loans for the twelve years ending
with 1893 had been 941 015 400 rubes, and
that of this amount $50 1886 300 rubles have
been applied to railway construction. The
number of miles of Russian railways, I'M
der both public and private owenrship, In
creased from 23GSS versts 0S,O0O msles) in
1890 to A. versts 10000 miles, on April
II, 1900 The railways owned by the gov
eminent were only AIS versts January
L. 1887 and only IL. $50 versts recently as
September I. 1892 The length on April 1.
1900, was 30.936 versts, including the trans
including the Eastern-Chnese railway, be-
yond the Russian boundaries.
Growth in Railway Earnings.
Railway earnings have steadily increased
with the development of commerce and the
extension of connecting lines. The gross
earnings in 1881 were only 199.973.S56 rubles
($1O3, OGO, GOD, and the net earnings 53.53S.-
SO rables (s2s. 900. OOO). The gross earnings
of 1897 were 447,359,975 rubles and the net
earnings were ISL. 4S1,219 rubles ($94.0W
OO0) A large part of the Russian debt |
therefore unlike many state debts, has
been incurred for productive investment. |
and the net earnings of the railways afford
the means for the payment of the interest.
ora yfh off he IL !