Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-10-08
RUSSIA,S TREASURY
srArEMENT OF THE FINANCIAL
AGENT oFs4HE EMBASSY.
He Announces That There is No Neces-
p Yss he
sity for Applying for Any
:. More Loans.

The financial condition of Russia. with
particular reference to the ability of the
Russian treasury to meet the enormous war
expenses, was discussed last night by Mr..
Gregory Vilehkine, the financial agent of
the Russian embassy. in an authorized in
terview. Mr.. Vilenkine has been for some
years assistant financial agent of the
Russian embassy at Londan. When asked
regarding reports that Russian finances
had been sorely taxed by the burden
of the war Mr.. Viienkine said: Yes. i
have found that such an impression has
gained ground In this country to some ex-
tent. Some foreign papers mentioned lately
excessive issues Of Russian bank notes, and
/. therefore. deem it my duty to acquaint
the public with the real condition of at
fairs.
Security for Notes.
According to the imperial ukase of Au-
gust .. 1897, government bank notes are
issued by the State Bank in amounts strict
ly limited by the urgent needs of money
circulation under gold security; the sum Of
gold securing 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 6O0,O00,OO0 roubleS Bank notes
which are in circulation over and above
OO,OO0,OOO roubleS must be secured by gold
at a rate of at least rouble for rouble.
I'm the course of 1904 there were issued
up to August last bank notes to the
the month of August of the current year
100000 roubles. Thus the total sum OF
bank notes put into circulation amounted
to 500, 100000 roubles.
The Gold Reserve.
1.-THE gold reserve consisted by the END
of August, 1904. Of 44,000.0O0 roubles.
namely gold in circulation, 125, 900, coo; gold
in bars, coin and assignments sanctioned
TBS, 900 900; gold abroad. 81 ,OO0,OO0. Total,
100000
Taking into consideration that the gold
security for bank notes has been fixed by
the ukase of August %. 1897, at 80 per cent
for the first 600,O0O,000 roubles issued, and
at a rate of rouble for rouble for the fol-
lowing issues, the gold reserve securing
S00O00O0O roubles In bank notes issued for
circulation need not exceed O0,OO0.0 600
roubles, while 1t has reached ga 100000
roubles. That is, there exists surplus OF
444, 100000 roubles 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 correspond
ents abroad, amounting, On August 1, 1904,
to 272 $50, 600 roubles.
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 ex-
penditureS In the far east where the ex-
penses are paid in bank notes, and the
second, simultaneously with the same, the
beginning of the revival of commercial
transactions which takes place during the
second half of each year with the COM
mencement Of the grain campaign, neces-
stating the issue of large sums from the
state bank. 1t must be noticed that the
bank notes issued on account of the autumn
me ~ q tray ntt ono
generally return to the bank at the end of
the strained period of the grain campaign.
These occurrences are repeated every year.
Thus, in 1902 the revival of commercial
transactions during the autumn months de-
manded an increase of money placed in cir
culation by 1851 900 roubles, and in 1908
by 1T 100000 roubles. ~
in the current year the demand for bnak
notes for commercial transactions must be
quite considerable, as the crops in many
regions of the empire are very 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 export This circum-
stance will probably render necessary fur
Their issues of bank notes. which can in no
way evolve any apprehensions with regard
to the stability of our currency as the
bank notes issued for short-term TRANSACT
lions soon return to the bank with the
realization of the crops.
AT the end of half a year from the be-
ginning of military operations the COM
parative figures on the amount Of our gold
reserve in conjunction with the bank notes
issued, stand follows:
ION February / of the current year the
gold reserve of the state bank consisted of
915.1 million roubles. while there were only
1886 million roubles of bank notes in cir
culation.
by August 1. 1904. the gold reserve of
the state bank consisted of 949.7 million
roubles. while there were only 605.S million
roubles in bank notes In circulation.
The War Expenditure.
LAS whole the war expenditure of Rus
STA from the beginning of the campaign
until the end of the year may be approx
mately placed at from 625 to $50 million
roubles.
with regard to the means for the cover
ing of this expenditure unforeseen by the
budget, 1t must be remarked that the re-
serve in the government treasury by jan
uary /, 1904, consisted of 312 million roubles
and after the covering of all outstanding
expenditures according to the budget of
1904 1t amounted to 100 million roubles. to
which sum there must be added 1876 million
roubles of economies realized by the cur
falling Of already sanctioned expenditures
for the current year, also $50 million roubles
realized from the issue of per cent treas
ury bonds and $50 million roubles from $50
per cent treasury bills. The government
treasury thus has at Its disposal approx
mately 100 million rOubles, which is quite
sufficient for the covering of the above ex-
penditure without applying to any new