The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1904-01-29
WAR GOLD RESERVES
1t Was Thought. That Nations
Accumulated Gold
TO PREPARE FOR WAR
Russia Would Hesitate to Use
Its Present Supply
New York. Jan. 2s.-The New York

New York. JAM 2s-The New York
Evening Post says a dozen years ago
the European money markets firmly be-
Heyed that the several governments were
scraping together gold for war chests -
Prussia's deposits in Spandu Castle Of
some thirty millions gold from the
French indemnity set the example; bat
the Prussia OF 1s72 did not invent the
plan. Frederick the Great received SEQ
600 thalers in silver from his father, and
added 81 0o0.0lo thaleTs 10 the chest"
during his reign. McCuiioch goes further
back and notices the 1000 talents
amassed by the Athenians between the
Persian and Peloponnesian wars; the
huge treasure of the Persian kings, and
the depoSiung BY the Romans. in the
Templa,.of Saturn, OF proceeds Of spe-
ciaI tax-to be used only IN dire emer-
gency.
For number OF years it was suspected
that other modern states than Prussia
were planning such emergency reserves.
II they ever contemplated it. however.
their huge public deficits upset the plan.
Expenditure on the army and navy
peace establishments proved vastly
be. Fer years il was fact. as true as
Il vas curious. that the United States.
which had no expectation of being in
yolved in war. was the only power whose
government had a huge fund Of actual
money absolutely subject TO its own dis
posai. In other states there were very
large gold and silver accumulation. but
they were almost exclusively employed
as reserves against note issues Of the
national banks.
The Imperial Bank at St Petersburg
today holds 1851 ofo. 90 gold agains, It's
ssso %. 900 Liabilities. and the bank is I'M
dor the governments control The treas
i,Tv might appropriate this cash by Sell
ing a gold loan TO the bank itself. OF
course. specie payments would first have
10 be stopped. \ well known English
economist once remarked that. IL grave
war crisis. the Bank Of England would
similarly hold back It's gold reserve
Russia would hesitate TO appropriate
its own banks reserves. because OF the
bad effect which such action would have
on state finances and future borrowing.
But Russia's difficulty IS. that is gov
ernment is always financially behind
mana. and That -kS NH z a4A-a- 49, AtA AUS
the capital 10 provide for war expenses.
The case Of Turkey. n the wars o. ls7s
and 1877. is often cited SIS proof that
ia akrupt state may 20 20 war ard fight
successfully an expensive campaign EuT
these were entirely land wars; they wers
fought near the base or supplies. and the
colnnnissarfaf w2x able 10 levy on Turkish
producers. Moreover. Oh tire eve u the
Russo Turkish war - is7T. Turkey stopped
paying Interest on its debts. and issued.
in the Isxt two years. nearly ssz0sss9p.e
per money Rgssis. xhsn the sa=se war
vas pending. borrowed - es "a Ber-
I'm Il had 10 pay roundly for 4; fsr
tie interest pate was y pr cert. aua ths
lean was placed al =. But neither forced
iosrs. nor s. ess s.s raised 81 ~ s7fe-aa-
sionzl market would serve - pay the
expenses q a naTaI and land canpaiSn.
wsgsd thousands Of miles away frSu ihe
military hz<--
japan net the whose cost q It's var
with China. 81 fsss BY means e internal
loans. advances fro1s the Bank % JapzE-
and use 81 It's surplus sre@>ssry balance
Il was officially estimated thsf TIE ex-
traordi-ary war expeaeftzre lA1= Involved