The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-12-10
RUSSIA'S SECURITIES

RUSSIA'S SECURITIES
In the disturbing affairs of the
world g finance, Russia again took pre-
cedence this week, her imperial per
cent bonds selling down to the lowest
point yet recorded since her long train
of disasters first began, or to 1914 in
the London market. Berlin was the
center of the greatest disturbance, con-
ditions almost reaching the panic stage,
and the London losses, altho showing
the direct effect, were in some part
sympathetic with the declines in Ber-
lin. OF the Important European money
markets Paris was the least cratic,
condition extraordinary in view of the
fact that France is. loaded up with
more than $e,OoO,ooo in Russian securi-
ties.
The Paris bOurse has maintained sta
bility and upheld conservatism since
first Russia began to go down in de-
feat, and the manner. in which Paris
bankers have stood against impending
pahic since the outbreak of the terrible
Russian internal disturbances, must
command the admiration of the finan-
cial world. Without the backing Of the
French government they could not have
done it. A year ago or more, the gov
eminent, foresighted,. and fearful of re-
suits in the event Of the people becom-
ing alarmed, took steps officially to
discourage speculation in Russian Sc
curltles and to put out assurances Of
safety. In no respect has this vigilance
been relaxed, and this week, with a
heavy decline in progress and rumor
circulating that Russia would be
4 obliged to default on Forthcoming in
terest date, the French premier, NJ.
Rouvier, issued an announcement to the
effect that the rumor was baseless and
that Russia has, in money centers out
side her own confines, funds sufficient
to tide oyer her interest payments how
ever disorganized conditions might be-
come at home.
The probability Of reputation is not
widely entertained. London, Berlin
and Vienna bankers say it is not to be
feared in any extremity, sNew York
does not believe there is even remote
probability, and it would be considered
little less than criminal to suggest it in
Paris. Nevertheless it is by no means
beyond the range Of possibility that
Russia g obligations might be thrown
I overheard. Her internal affairs are in
frightful. state and the very worst
may happen. Russia would never re.
fuse to pay, UNDER whatever form her
government might take, SO long as men
of honesty Of purpose and maturity of
!; Judgment were in control, for aside
from consideration of the justice Of il
they would be governed by the knowl
J edge that the blot Of debt Reputation
would damn the country, and bar il
from that outside governmental anc
financial recognition necessary to-. it.
progress. But unfortunately 5 honest
men Of good Judgment would appear to
be rather scarce in Russian affairs OF
the present day 81 r ,,s5.s
No forecast of Russia s. financial flu
J ture can be takemas dependable. Look
ing at her materials resources it woulo
. seem that her securities, at.211a points
below par, should have been gooe
purchase. Reading later. reports of in
) ternal troubles would make them an
pear dear at any price. The fact thai
the brandy monopoly brings in abou
!, $2O0,Oo0,OO0 a year, that the govern
: ment promotes the sale Of it for tn,
revenue, and that the finance ministe
is now reported trying to mortgage Thu
!. Source of income to a German bankins
! house, does not make for any increas
5 During the French Prussian: wa
: those who had confidence enough to buy
, French securities sat times of creates
t depression profted materially. For
a tunes were made buying our: own gov
ernment bonds and other obligation
during the civil war, for after fedora
defeats, in the period before the battl
( OF Gettysburg when the confederate
: were in the state Of Pennsylvania, an,
= again later on when the cost of the wa
5 had climbed above the mere million
! and was in the billions, they sold yer,
;. low. AS recently as 1898, when on
t country fought Spain, the Spanish four
9 fell almost to 80, but today they ar
! quoted around 90.r On the other han
!. some of the most eminent Statesmen
g shrewdest politicians, and best fnar
9 ciers in England, put large sums int
!. confederate securities and lost til
ii money.
Many think that the turn Of tn
! year will witness change for the BET
= ter in Russian affairs. If this is rea
If lied it will remove the greatest di,
n turbing influence Of the day in tn
finance of the world.
W It is conceded in New York that tn
r market is an abnormal one, but as til
10 DOOlS are 1ihera11u snDnlied With Ain,