The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-24
General Financial News.

The recent violent collapse on the Paris Bourse
has had the natural effect Of turning all eyes
upon that market. and all conjecture upon the
probable influence of the war. with its shock
to the credit of belligerents. on the community
which for thirteen years has been the fountain
of wealth upon which the borrowing Russian
government has drawn.
Most people who read the foreign
familiar with the episode. Russia is a perpetual
borrower-partly because OF frequent deficits
in actual revenues. but also because in Russia
the public credit has been used-especislly since
M Witte became head OF the treasury in lss2-
TO finance the industrial and transportation en-
terprses of Russia Twenty-nv years ago
London was the money market TO which Russia
in common with other borrowing governments.
resorted The clash wits ENGLAND gland IN n; Af On
Gladstone. would probably have led TO war
ended this.
ST. Petersburg next resorted 10 Berlin. and
for nearly a decade raised the necessary money
Ia arraneenent because Germany was then
not only equipping with banking facilities many
ming 70 provide With It's own overlooking capital
the facilities for Russian industrial develop
msnt Dnrns 1nS pet the Russian sovernmen.
put out loans footing up some $50 100000 ruoes.
always disiiked the movement being suspicious
of what the future relations of Russia ana
| Germany might be. In 1880 something curious
| happened; IL was thus described by an eminent
| organ of financial criticism: .
| is said. of the German government became
alarmed at the growth Of the financial respon.
| OF Russia. and Russia in effect told she
| could have no further advances
| II was precisely at this time. early In 1871.
that negotiations for the Franco Russian dual
| aruance'' began London ascribed financial
natives 10 Russia's attitude. This need not
/ have been the explanation. but the fact
mains that the Car and President csrnot had
/ hardly affixed their signatures 10 the secret
! Ser amin Z nj
1 Russian loan for rs. 600 600 rubles was offered
70 the Paris bankers In 1854 another teliowed
distinguished Russian general In at =, the Pres-
! Few months later 100. 600 O0O-ruble Russian
loan appeared n Paris and was s,, N rs
/ in 1895 and President Faure's return visit In
| 1897. similarly signslized
During the decade beginning with 1890 II II
estimated that the total Russian debt expanded
by Ss3.97l 900 rubles. or approximately $ff7.oo
coo This occurred entirely during time ~
peace II is true that. while the face OF tho
! debt was thus increased. the average interest
charge lowered by conversions and substi-
| that the amount OF Russian securities snost on
| Europes markets was increased ~ the full
! amount OF the increase in the principal shown
! above and the increase has continued. only
/ last July Russian loan for some $S5.ooo. 900.
offered in Paris. was twenty times oVersuo-
How much does the French investor hold ~
! these securities? How they distributor Do
they at present prices show gain or loss 70 the
| original INVESTOR Are they. they not.
| so placed that they will not be forced upon tho
| market? These are extremely pertinent Ques-
tions in view OF the existing situation
II Is an interesting fact that until the actual
outbreak OF war the price OF Russian bonds az
( Paris has sustained itself. In spite OF the huge
| new issues. Thus the 81 per cents OF is9i were
/ sold at 94s., last year they sold az par. The .
! per cents Of 1891 were placed al 7sk: even last
| month they commanded S3is This month the
! "a per cents. have fallen 20 - and the per
/ cents. "a But the earlier maintenance OF
: value does not point 10 any panicky outpour
| from French investors. Who are rich enough TO
keep what they have. and who are still draw
/ ing interest N the French public Was poor, or
! N Russia were 10 default OF It's interest cOu-
uons-as the Paris bears alleged last Saturday -
the case would be greatly altered. But Russia
will undoubtedly take care OF her interest pay
ments that Is the smaller part OF her present
difficulties. The real problem OF the French
market is where Will its holders OF '-undtgested
Russian securities turn for reef3-New York
Pet