The Penn's Grove record., 1900-03-02
SECURES AMERICAN LOAN
New York Syndicate Lends SOS, ooo,-
900 to the Russian Government
Money VIII Be Left in This Country
For Purchases OF Iron, Steel. Coal
and Finished Products.

NEW YORK CRY (Special).-Ignoring Ber-
lin, LONDON, Paris and the other European
banking centres, the Russian Imperial Gov
eminent has cometo New York City for a
loan. A syndicate of financial institutions
Of this city-banks, trust com panies and
insurance eompanies-have iust arranged
the purchase OF On issue OF -$25 ,000, 900 OF
four per cent. bonds, representing a first
mortgage on the Wladikawkas railway
system. The principal and interest ofthese
bonds is guaranteed by the Russian Gov
eminent, and is payable In American gold
dollars.
The nature and size of this loan and the
disclosure which 1t makes of this country's
present position as a financial power OF
the world is its most interesting feature.
Another is the surprising showing 1t re-
veals as to Kussia's purchases in the Amer
lean market Of iron, steel, coal and fin
ished machinery. Besides, there Is the in
teresting fact of a gold loan guaranteed
by one OF the great European Powers SELL
Ing in the American market at a price
which nets the syndicate slightly more
than four yer cent.
1t may be stated positively that the flrst
80, 0O0, 900 of the bonds have just been de-
livered In New York City, and that a pay
mont Of @5, 900 900 has been made on ac-
count. From a financial standpoint, pro-
badly the most remarkable, part Of the
operation lies In the fact that all Of the
cash to be paid by the syndicate for b
bonds will remain In this country, and that,
therefore. there will be no disturbance In
the exchange markets.
A special arrangement, mad with the
Russian Government by a representative
of the syndicate who recently returned
from st. Petersburg, provides that one OF
the money for the bonds is to be trans
ferred to Russia, but that all OF the
mounts are to be deposited In New York
City to the credit of the Government and
disburse1 under direction Of the Russian
fiscal agent in America, NJ. de R~outkowsky,
In payment of the balances which Russia Is
mourning with American ~shipbuilders, iron
and steel manufacturers and others OF that
class.
purchases In this country amount to be-
tween %. 00O. 900 and $40. 900 900 annually,
III well known firms as the Cramp Ship
building Company, the Carnegie Company,
Bethlehem Steel Company, the Baldwin
Locomotive Works, the Westinghouse Air
sesef1g machine companies being the prin-
cipnl sellers. In addition to these prod
ucts Russia is about to conclude the pur-
chase OF 81, 900, 900 worth Of bitumfnous
coal In this city.
Authorities believe that this initial pur-
chase OF coal ana the DuylnX OF materials
in connection with the constru ction OF the
Trans-Siberian Railway and the great de-
velopment OF her agricultural products In
dictate only the beginning OF Russia's pur-
chases In this country.
The New York Herald, commenting on
the placing of a Russian loan in the United
States, says:
"In comparison with many great loans
effected by the leading Powers the sum is
not so large as to startle the financial world
by any means.
"But the terms under which the loan Is
made, the non-withdrawal OF the amount
furnished, the objects for which the money
Is to be expended, and the fact that the
1nancierlng has been quickly accomplished
here, and not ct some European money
centre. make it an affair that has deep
significance In many ways. 1
ssThe money Is to be left here to be ex-
pended In purchases OF manufactured
material for the Trans-SIberian Railway
and other works OF public Importance
to Russia. It means that this customer
for our great Nails and foundries Is to
be a larger customer than ever; that
Russia is at the door as a buyer,
and Is deposiring q large sum because
she expects, to give larger orders than ever
In the future-that not only our ommer-
,ial market Is one In which Russia will be
8 large operator, on the right side OF our
tedgers, but that she find our lnancier5
ready to accommodate her, to their joint
nroft, as WELL"