The Washington times., 1905-08-14
Russia Laying Lines !
To Negotiate a Loan

PORTSMOUTH, Aug. AN. Wttte,
the Cars senior peace envoy, is willing
to bring peace. It is ascertained from
q reliable source this morning that the
count intends to use all his efforts
toward arranging with leading New
York hnanciers TO have Russia borrow
large sum with which to satisfy the
demands of Japan and thus remove ono
OF the greatest stumbling blocks in the
way of q settlement to end the war.
M. Witte today held conferences with
Jacob H. Schiff, Of the great banking
house of Kuhn, Loeb & Co, and also
with Aessrs. Straus and Seligman, Of
the banking firm Of ). and W. Selig-
man & Co.
There is a consensus OF oplniCn to-
day among the ENJOYS that the Car
is seeking to borrow q great sum OF
money which is TO be paid TO Japan ap-
parentiy as Russia's price for regaining
possession of Sakhalin Island. but IN
reality as a war indemnity to japan.
To Foreign Banking Firms.
AT the Russian legation this morn
! ing NJ Witte awaited replies from Lon
| don to two cabIegrams he had sent,
one to the London banking house OF the
| Rothschilds, and the other to the Ant
werp branch OF Kuhn. Loeb & Co. It
| is known that both Of NJ Whites cable
dispatches involved the borrowing by
| Russia OF money
There are two constructions to be
! placed on the plans being made by ths
| Car TO raise funds. One is that he in
! tends 10 buy peace; the other that II
/ the peace conference should turn out to
! be a failure ne would have arranged TO
! borrow enough money 10 continue the
! war Indefinitely.
! 1t is certain that the bankers who
would loan money TO Russia would In
! siSt on knowing for what purpose the
! Car would use it. The conclusion IS
! therefore obtained that the money
sought for is to be used for peace pay
/ ments. and not for war, as the hn&n-
| cierS would hardly lend great sums
TO carry on a war ROW conceded by all
save Russians TO have been won by
No ore can be found here who Will
say ne believes Russia iesires TO borrow
raCrey 10 continue the war All ere
unanimous in declaring that the Gar
is trying TO float a loan OF many mil
lions. and that the money is to go into
the vaults Of Japan 5 treasury
Peace Not in Sight.
Prussia and Japan are stin a long
distance frGm arriving at a settlement
of the war said NJ Witte today.
The outlook is not clear yet, and We
may never reach an agreement
What about the financial status e9
the negotiations" was asked.
.'Russia is not in dire straits for
funds he answered. My country has
money enough 10 continue the war for
years. Russia honor IS 1t stake. and
vou may be sure the Gar viii not
aEree 10 peace terms that would reflect
discredit, either on himself or his sub
jeCtS.
The main question being discussed to-
day by the euVoys at the conference
surrounds Japans relations with Korea.
This is known as Article 40. J., in
The terms submitted 10 NJ. Witte by
Baron Komura, when the conference
crened. This question Is not considered
Il be OF paramount importance, and the
belief is general THAI il viii be disposed
OF in a fairly reasonable amount OF
T., lime That Russia viii agree to Japan
having absolute control over Korea is
considered the most plausible outcome
al The negotiations over Article No. !.
Enjoys in Good HumOr.
Much al the gloomy feeling that fol
lowed after japanese terms We're given
10 NJ Witte has passed away, and to-
Gay the envoys all seemed 10 be in good
hunor or the way 70 the conference
this moruing, Baron komura ehattee