New-York tribune., 1904-10-08
RUSSIAN FINANCES.
Can Meet War Expenses Without
Nezc Loan, Financial Agent SAYS.


Washington Oct THE financial condition OF
Russia with particular reference to the ability Of
the government to meet enoroUms war expenses.
were discussed tonight by Gregory vienkine.
financial agent OF the Russian Embassy. He was
asked regarding reports that Russian finances had
been sorely taxed by the burden of the war.
Yes. I have found that such impression has
gained ground in this country 70 some extent" Mr..
vuenkine said Some foreign papers lately men
toned excessive issues Of Russian banknotes. and
therefore deem II my duty acquaint the public
with the real condition OF affairs According the
imperial ukase o. August q. 1897 government bank
notes are issued by the state bank in amounts
strictly limited by the urgent needs OF money cir
culaton under gold security the OF gold secur-
Ing the be less than half OF the total
OF banknotes issued for circulation. when the
latter does exceed 6oO.OO0OOO rubles Banknotes
which IN circulation over and above sO0OOO.SO0
rubIes be secured by gold at rate OF at least
ruble for ruote In 1904 there were issued up 70
August last banknotes 20 the amount OF 1S0.OO.OO0
rubles, and the month OF August OF the current
year 4oOC0OOO rubles Thus the total sum OF bank
notes put into circulation amounted 10 SOO.O0OOOs
rubIes.
The gold reserve consisted at the end Of Au-
gust 1904 OF 944OO000O rublss-nameIy. gold IN cir
culaton. 125. .oOOOOO; gold in bars coin and assign
nents sanctioned T2S 10000; gold abroad, 9IOO0 OO1
total s4iOOO.0O0 Taking into consideration that the
gold security for bsnknotes has been fixed by the
ukase OF August o. 1897. 50 per &C nj the rst
6OO,00tM0 ruoles issued and at rate OF ruble for
rube for the following issues. the gold reserve
securing S0O.0O.OOO rubles in banknotes issued for
circulation need exceed 5O00OOOO0 rubles while
II has reached 9+oOoO0 rubles that Is exists
a surplus OF 444OOOOOO rubIes. not including the
large gold reserve in the government treasury.
which is not entered within the balance OF the
State bank These reserves consist OF gold In bars
and coin in the St Petersburg mint and sums in
the hands Of foreign correspondents abroad
I IN r1rbIa
The issues OF bank notes were brought about
by two causes The first cause was the deduction
from the current account OF the government treas
ury for military expenditures in the Far East
where TIE expenses are paid in bank notes. and
the second. simultaneously with the same. the
beginning OF the revival Of commercial transac-
tions which takes place in the second half OF each
year with the beginning OF the grain campaign.
compelling the issue Of large sums from the State
bank Il must be noticed thar the bank notes is
sued on account OF the taI development OF com
ulercaI transactions generally return to the bank
at the end of the strained period OF the grain
paign- These occurrences are repeated every year
Thus in 1902 revival Of commercial transactions
IN the fall months demanded increase OF money
placed in circulation by l56,CO0OO0 rubles and IL
1903 BY IL 1900 rubles. In the current year the
demand for bank notes for commercial rranSac-
tions 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 increase Of exports. This cir
cumstanc will probably render necessary further
issues OF bank notes. which can in no way involve
any apprehensscns with regard 20 the stability OF
our currency as the bank notes issued for short
term transactions return To the bank with the
realization Of the crops.
Eat the end CT half = year from the beginning of
military operations the comparative figures the
amount CT our gold reserve IN conjunction With the
hank notes issued stand as follows: On February
OF the current year the gold reserve OF the State
hank consisted OF s51O eco rubles while there
onIv 5ss O0O rUb.es OF bank in circulation
Nv August l. 1904 the god reserve Of the State
hank cousis- ed Of 9s 900 rubleS while there were
onlv as 3CO 90 rub.es in bank notes in cirCuatOn-
.As a n hole. the war expenditures Of Russ a ON
the BEGINNING OF the campaign until The END OF TIE
wear NAV te approximately pIacsd at from 65.OO o
"a go OOG00 rub.es- With regard 20 the means tor
the covering Of this expenditure unforeseen by the
budget II must be remarked that the reserve IN
the government treasury ty January J. 1904 consist
ed Of 00 rub es and after The covering OF all
outstanding expendtl luTeS according 70 the budget
az 1904 II amounted TO lS0J0l.0CO rubles 60 which
sum there must be added 100000 rUblss OF eCOnO-
mics realized by the curtating OF already sane
toned expenditures for the year. also 2S2
trea slry bonds. ard $4,000 O0O rubes from the 36
psr cent treasury bills. The government treasury
thus has az its disposal approximately 100 GoO 600
rJIbles which Is quite scient for the covering OF
the above expenditure without applying tor any