The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-05-06
RUssIA's WAR LOAN.
Arrangements Completed for Borrow
ing $1OO,OOe,O0O in Paris.

Paris, May 6.-An authoritative state
ment was given the Associated Press
today from the highest governmental
source concerning the details and cir
cumstances of the new Russian loan as
follows:
THE situation has been much chang
ed since your interview with NJ. Mieczis-
las de Routkowsky, the Russian finan-
eial agent in London, April %. The
conditions today on which the loan is
based are as follows:
1.-The cost of the war for the first
five months, up to June 1, including
s22, 100000 for railroad equipment, is
s125, 900 600.
After June 1, the monthly cost of
the war will be 50, 500, 600 for the navy
and S15 1000, 900 for the army at the
front, making the total war expenses
about s256, 500 900 for the year closing
January 1, next.
1.-The first part of the war was more
expensive than the latter, owing to the
cost of mobilization and the general
expenses incident to setting the ma
chinery of war in motion.
Against these extraordinary eXpen-
ses we may have certain economies,
namely $50 900, 900 on the ordinary bud
get, $27, 800, 600 on the extraordinary bud
get and SO, 500, 900 on previous budgets,
making the total economies $67 GOO 900.
when the war began the Russian
government had between $15O,OOO 900
and 5000, ,O0O, 900 to its credit in the Bank
of Russia and with foreign bankers
According to the monetary law of 1897,
which made gold the standard for Rus
sia, there was a stock of gold amount
ing to $475 600, 600 and a note issue OF
S350,O0O 900. Therefore, Russia could
still have placed in circulation 5000, ,0OO,-
600 to $3.50, ,000, 600 in notes without i'm
pairing the slightest the gold law of
1897 However. by SO doing the none
tary situation after the war might have
been less satisfactory than at present.
tecting the International money situa-
ton the Russian government has lent
a favorable ear to the proposals made
by French bankers and has opened ne
gotiations at st. Petersburg with JOS
eph HOettinger of the house of HOet-
finger q CO., and with NJ. Noatzlin,
one of the directors of the Banque de
Paris Et Des Pays Bas. They have
made two visits to ST. Petersburg and
are leaving there tomorrow for Paris
The purpose of their visit is 10 negOti-
ate the issue of treasury bonds, running
five years at 5 per cent
These are going to be offered to
customers of the big French financial
houses at near par. By so doing the
Russian government reserves the
right after five years to make use of
it's internal credit to convert or con-
solidate these fve-yeGr bonds into a
funded debt bearing lower rate of
interest The amount likely to be
taken up at once in Paris will be
lUU, ,UUUsU sUUN. anu the issue Cdit 80 Up
to S16O,OOO.O0O. Already the con-
tracing houses are sure to place the
full amount they underwrite among
their custom ers- Therefore no public
issuance is to be made, and the usua
public subscription at a fixed day viii
be dispensed with, the issue being
sold by bankers privately
The foregoing differs from other re-
ports concerning the amount of the
loan, but owing to the authoritative
source it can be accepted as final
It is understood that the terms will
be signed before NJ Hoettinger and
NOetzlin depart from st. Petersburg
tomorrow or thereafter. The signing
by the French banks will take place
next week, the issuance of the loan fol-
lowing inm ediately.