The Washburn times. [volume] (Washburn, Wis.) 1896-1976, 1904-11-24
RUSSIA'S WAR FUNDS.
Financial Agent Tells Of Her
Ample Resources.
SURPLUS AND RESERVE LARGE.
Cold In the State Bank and Govern
ment Treasury Amounts to More
Than 7OO,OOO,OOO Rubles - Russia
Can Meet War Expenses Without
Amy Now Loans.

ANY Now Loans.
: The financial condition Of Russia,
with particular reference to the ability
Of the government to meet enormous
war expenses, was discussed the other
night by Gregory Vilenkine, financial
agent of the Russian embassy at Wash
ingtOn, says the New York Tribune.
When asked regarding reports that
Russian finances had been sorely taxed
by the burden of the war Mr.. Wien
kline said
Eyes, have found that such an i'm.
preston has gained ground in this
country to some extent. Some foreign
papers lately mentioned excessive is
sues of Russian bank notes, and l
therefore deem it my duty to acquaint
the public with the real condition of
affairs. According to the imperial
ukase of Aug. %, 1897, government
bank notes are issued by the state
bank in amounts strictly limited by the
urgent needs Of money circulation I'M
der gold security. The sum of gold Sc
curing the notes must not be less than
half of the total sum of bank notes is
sued for circulation, when the latter
does not exceed 6O0OO0,O00 rubles. A
ruble is equal to x cents in American
money. Bank notes which are in circu-
lation over and above 100000, 900 ru-
bles must be secured by gold at a rate
Of at least ruble for ruble. In 1904
there were issued up to August last
bank notes to the amount of 100000
600 rubles and the month Of August of
the current year 100000 rubles.
Thus the total sum of bank notes put
into circulation amounted to S00,000,-
900 rubles.
"The gold reserve consisted at the
end of August, 1904, of 944,OOO,OOO
rubles-ramely, gold in circulation,
125,000,00O; gold in bars, coin and as
signments sanctioned, 72S,O000OO; gold
abroad, 91,C0O,0O0; total 944,00OOO0.
Taking into consideration that the gold
security for bank notes has been fixed
by the ukase of Aug. %, 1897, at so
per cent for the first 600,000,000 rubles
issued and at rate of ruble for ruble
serve securing SOO,OO0,00O rubles in
bank notes issued for circulation need
not exceed 50O,OOO,OOO rubles, while it
has reached ga 100000 rubles-that is,
there exists surplus Of 44,OCO,O 900
rubles, not including the large gold re-
serve in the government treasury,
which Is not entered within the bal
~ q TO 70
consist Of gold in bars and coin in the
St Petersburg mint, and sums in the
hands Of foreign correspondents abroad.
'The issues Of bank notes were
brought about by two causes. The
first cause was the deduction from the
current account of the government
treasury for military expenditures in
the far east, where the expenses are
paid in bank notes, and the second 81
simultaneously with the same, the be-
ginning of the revival Of commercial
transactions which takes place in the
second half Of each year with the be-
ginning Of the grain campaign, COM
polling the issue Of large sums from
the state bank. It must be noticed
that the bank notes issued on account
Of the fall development of CONNIE rcial
transactions generally return to the
bank at the end Of the strained period
Of the grain campaign. These occur
renceS are repeated every year. Thus,
In 1902 the revival of commercial trans
actions in the fall months dema Nc e6
an increase Of money placed in circula-
ton by 100000 rubles and in 1853
by III 100000 rubles.
In the current year the demand fot
bank notes for commercial transac-
tons must be considerable, as the
crops in many regions of the empire
are abundant, while at the same time
In some foreign countries importing
our grain the crops are unsatisfactory,
fact which will bring about an in
crease Of exports.
AT the end of half year from the
beginning of military operations the
comparative figures on the amount Of
our gold reserve in conjunction with
the bank notes issued stand as fol-
lows: On Feb. of the current year
the gold reserve Of the State bank con-
sisted of 915, 1000 rubleS, while there
were only 59S,60O,OOO rubles of bank
notes in circulation. By Aug. !, 1904,
the gold reserve Of the State bank con-
sisted Of 94S, 100000 rubles, while there
were only e95,3OO,OOO rubles in bank
notes in circulation.
GAS whole, the war expenditures Of
Russia from the beginning of the cam
paign until the end Of the year may be
approximately placed at from 625, OOO,-
BOO to $50, 100000 rubles With regard
to the means for the covering Of this
expenditure unforeseen by the budget
1t must be remarked that the reserve
In the government treasury by Jan. /,
1904, consisted Of 312,O00,OOO rubles,
and after the covering of all outstand-
Ing expenditures, according to the
budget Of 1904, it amounted to $780,
100000 rubles, to which sum there
must be added 135,000,C00 rubles Of
economies realized by the curtailing
Of already sanctioned expenditures for
the current year; also 100000 ru-
0les realized from the lease of per
cent treasury bonds and 15O,OOO,OOO
rUhloS from tho NOR cont fraa SI1rv