The sun., 1903-11-07
THE FAR EASTERN QUESTION.
Japanese Financial Hif1culties and Rus.
sian AudacIty.

TO THE EDITOR OF THE SrN-Sir: That
Russia and Japan We're bound to come to a
peaceful settlement Of their disputes. not
withstandng the warlike reports and rumors
OF the past few weeks. has been for some
time apparent. II became u certainty when
Japan found il impossible 10 raise the money
that would have been Indispensable for carry
ing on a war in which victory was uncertain
and defeat would have been ruin.
There was moment early in the year when
war With Russia was seriously contemplated
at Toxic. and with fair prospect OF success;
for the Japanese fleet was then relatively
superior to the Russian, and other conditions,
except the financial. We're favorable. But
the government of the Mikado, having its
hands tied by its treaty of alliance with Eng
land, was unable to decide and act alone.
The consequence was period Of hesitanoy.
during which the Russians reinforced their
fleet and siren gthened their army in Man
churia. Then when in a moment Of almost
desperation It did decide to act alone. aud
threw itself on the London money market
the only one from which i could hope for
help. its : per cent. stock fell there from 1861
TO gjL2 the new IS from l0l Z 10 GiIS and the
4per cent. sterling loan from Sg1i TO so,.. In
addltlon, the marine insurance rates went up
TO prohbltory figure; and, hnally all under
writing of japanese ships and cargocs was
ranEement by negotiation took the place OF
war, FOR which the Russians had fully pre-
pared.
The cause of Japan's failure to float loan
on the London market arose out OF the pecu-
liar conditions existing there, and dating
back before the end Of The Boer war. When
debted to various European Continental
financial establishments 70 the extent of some
$500, 900 900. There has been reduction since
then. but the latest statement shows that
quite 5000. .oO0. coo are still outstanding, bel iong
Ing to or in The control Of foreign bankers
n nm n1 6l VI h1
certainty that the greater part Of this money;
which is mostly out on short loans, would
ni2ed her opportunity. and with customary
audncty and little regard for foreign criti-
clsm. seized il; and 10 all inents and purposes
the Russians are in Manchuria to stay.
As 10 Jnran, having been put in false posi-
a"1 toward R1fsa nnry by n her hs- oWn aGt" bn
II may hc useful TO recall to mind. made a So
called railway convention with Russia IN 1909
Wall Of China was rccornizcd as within the
Russian sphere. she has to be content with
Gorea up to the Yaln on the northwest and the
believe that Russia desired to draw the line
somewhere across the narrow neck OF the
peninsula, but political reasons and certain
territy. of Corca prevailed. and the usually
recoEnized boundary will he or has been ac
Russian and Japanese spheres. Under this
arrangement, Antunr, on the west bank OF the
s oa ont he MmSh sNwG S@
Port Arthur railway is projected and work
begun, becomes Russian; Win, on the east
bank. falling TO Jaran, which will eventually
carry forward the Fusan-Scoul line from the
south to meet the Russian NanchuriAn rail-
way branch line. Posiottc Bay. at the north
eastern extremity of Corea and on Russian
territory. was recently occupied by Russian
force and will he permanently garrsoned.
and later connected with the Manchuran
railway by q branch line.
What the settlement portcndS for China
need not be discussed now, but II will not be
MouravieI Russian Minister OF Foreign
Affairs in which he said that Russia would
view with satisfaction the extension Of Jap
auese power and influence over the islands Of
the Eastern Seas. f.
NEW loRK. Nov.4.