The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-05-07
DETAILS OF THE
RUSSIAN LOAN
Financial Condition at the Out
break OF the War.
ESTIMATED COST TO IUNE 1
BONDS TO RUN FIVE YEARS Ar
5 PER CENT.

Paris, May 6.-An authoritative
statement was given TO the Associ-
ated Press today from the highest gov
ernmentsl source concerning the de-
tails and circumstances of the new
Russian loan, as follows:
The situation has been muen
changed since your interview with NJ.
Mieczislas de RoutkOwsky, tie Rus
sian financial agent IN London. April
% The conditions today on which the
loan is based are as follows:
The cost of the war for the first
five months, up to June ], including
s22,50O.0O0 for railroad equipment. 3
1925 OOO, 900.
after June I the monthly cost Of
the war viii be 49, 500 900 for the navy
and Sl5,000,0O0 for the army, at the
front, making the total war expenses
about S245. 900 for the year closing
Jan. 1 next.
THE first part of the war was more
expensive than the latter. owing TO
the cost of mobilization and the gen
eral expenses incident 10 setting the
machinery of war in motion.
Against these extraordinary ex-
pc -es we may have certain econo-
mics. namely, $50 900 on the Ordi-
nary budget. s27, 800. 600 on the extra
ordinary budget, and $500 600 on pre-
vious budgets. making the total eceno-
mics SCI 900. 900,
Financial Statement.
When the war began the Russian
government had between $50 600 900
and 20O00J,00Q 10 It's credit in the
Bank Of Russia and with foreign bank
era. According to the monetary law
Of
ard for Russia there was "a stock If
gold amounting 20 S4750Oo. 600 and
note issue of s35O009O00. Therefore,
Russia st.u could have placed IN cir
culati0n $500 coo 900 to $3.50 600 600 in
notes without impairing I'm the slight
est the gold law OF 1897. However. by
so doing the monetary situation after
the war might have been less salts
factory than at present Accordingly.
for the purpose Of protecting the in
ternal monetary situation. Inc Russian
government has lent a favorable ear
70 the proposals made by French bank
ers and has opened negotiations at ST.
Petersburg with Joseph H0ettinger. Of
the house of Hoettiuger e Co. And
with NJ Noetzlin, one of the directors
Of the Banque dc Paris ct des Pays
Bas. They have made two visits 60
st. Petersburg and are leaving there
tomorrow for Paris The purpose Of
their visit e. TO negotiate the issue or
treasury bonds. running five years at
per cent These are going TO be
offered to customers of the big French
financial houses al near par
Rights Reserved.
"By SO doing the Russian govern
ment reserves the right after five years
to make use of it's internal credit TO
convert or consolidate these 6ve-year
bonds into a funded debt bearing
lower rate Of interest The amount
likely to be taken upat once In Paris
win be 100000 600, and the issue can
go up 10 $4,000 900. Already the CON
tracing houses are sure to place the
fun amount they underwrite among
their customers. Therefore. no public
issuance is to be made and the public
subscription at q fixed day viii be dis
pensed with, the issue being sold by
bankers privately.
The foregoing differs from other re-
ports concerning the amount Of the
loan. bur. owing 20 the authoritative
source. it can be accepted as final
II IS understood that the terms win
be signed before MAJ H0ettinger and