The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-04-02
ANOTHER ILLUSION GONE

has dispelled what ought to be the last
of Russia's illusions concerning the
relative advantages of that country
and Japan One after another her
naughty ideas OF superiority have gone
glimmering. Her fleets have been
smashed and sunk. Her armies have
been beaten and forced from one posi-
ton to another, seeking always merely
to save surrender. She has found her
self worsted at every point, and COM
mon sense would dictate that she give
up the game. One delusion. however,
she still retains. Wherever a leading
Russian expresses himself on the con-
dilating upon Russia's superior finan-
cial strength and her ability, from the
money point of view, TO proIong the
contest indefinitely.
Now this idea Is Just as faIlacious
as the belief OF the bureaucrats that
they could send a few armies to the
front and end the war in no time. Both
in actual resources and in credit, Japan
is UNNECESSARILY superior to Russia
today as far as the prosecution of the
war is concerned. The Russian loan
was refused by the great bankers OF
the world except on terms of ruinous
discount. 1t is true that 1t was sub
scribed for by her own people, and
equally true that this is an economic
advantage. Nevertheless, it is an indi-
cation Of insecure credit The time will
come, if this contest is pushed far
enough. when Russias people will no
longer have either money or patriotism
enough to furnish the vast sums that
the prosecution of the war will re-
quire. Capital is not always patriotic,
and looks to its security. When that
time does come. Russia will be abso-
lutely helpless financially, because no
foreign loan can then be placed by her
on any terms.
The credit Of Japan. on the other
hand, has been immensely extended
and strengthened by her war expert
ence. When her loan of $50. 900, 900
was offered it was subscribed for in
bulk in London and New York at once.
When the books were opened to in
vestors in London. there was a rush
for the bonds scarcely less pronounced
than If Great Britain had offered a
batch Of her own consols. The reports
say that the loan was subscribed ten
times over. This not only insures
plenty OF immediate cash, but gives
reasonable certainty that, as far as
credit is concerned, Japan can keep
her armies in the field indefinitely. Her
credit has gone soaring since the be-
ginning Of the war, and with all her
immense expenditures she could easily
borrow today ten times the sum that
she would have raised only with great
difficulty two years ago.
Turning now to actual assets and
the practical conditions of the war,
the japanese advantage is equally
strong. She has captured an immense
amount Of valuable war material. The
guns and supplies which went with
the surrender of Port Arthur and the
enormous stores Of food and material
at hand around Mukden foot up high
in the millions. All this has gone to
lessen Japan's own expenses. Further
more. she is now, as she points out, In
practically complete possession of Man.
churia. which is a rich and fertile
country. Still disclaiming any desire
to retain it permanently, she must oc-
cupy it under military rule. She will.
therefore. not only be authorized but
obliged to set up a temporary govern
ment, and will be able to collect under
1t from the people OF that province a
large portion Of the necessary mainte-
nance Of her army. She Is in a posi-
ton to carry on the war for many
years at minimum of expense, and Is
whenever that must be resorted to.
The battle OF the dollars has shown
the same event as the battle of the
bullets. In reality Japan.s great dan
ger when she went into this war was
financial Her resources and her abir-
ties were comparatively little known
to the world. Had she experienced a
serious reverse, her bonds could not
have been fioated at any price. It
would have been seen, for instance, IL
the Russian navy had been victor, that
1t could easily devastate the japanese
seaports. convoy transports full of
troops to invade the country and in
short time either make an actual con-