Los Angeles herald., 1905-12-08
HARBIN BURNED;
TROOPS CUT OFF
SOLDIERS PLUNDERING THE
CHINESE VILLAGES
witte Powerless to Cope With situ-
alton In Russia--Hluh of-
elals Ask Permission
to Retire
threat against any new arbitrary
act.
Country's Credit Threatened

Countrys Crcdit Ihreateneo
The immediate danger confronting the
government Is n concerted attack on
the country's credit. The public fear
that the government can be forced to
suspend gold payments increase daily.
This would be the crowning achieve
ment of the revolutlonists, who
are satisfied that with the at
tending financial crash the whole
house would come tumbling down. The
chances of driving the government into
bankruptcy they profess to believe
would be materially increased If the
confidence Of the foreign holders of
Russian obligations was undermined,
and the news that the French inves-
tors who hold four-fifths of Russia's
immense foreign Indebtedness were un-
loading was received with Jubilatlon
by the revolutionists. At the same time
1t created a veritable panic on the
bourse, imperial As falling to "a, SIS to
"a 1-2 and the government lotteries to
c45. Banking and industrial shares
went down with rush, Putiloff SoinS
from % to Sc and iron shares like Ko-
lon1o and Moscow. which month ago
were quoted at $50, closing at $50. The
savings banks were subjected to run
and at the state bank a long line of
nervous men and women waited for
hours to exchange paper money for
gold. The bank officials did not at
tempt to dissuade them and exchanged
piles of gold for bills as fast as the
latter were presented
Both the runs on the banks and de-
mand for foreign exchange were ac-
celebrated by circulars which the Strik-
ers and revolutionaries are spreading
broadcast.
Fifty Million Withdrawn
At the ministry of finance it is esti-
mated that about $50 10000 900 has been
thus far withdrawn from the state
banks. The balance of gold in the
treasury and abroad now stands at
$3.50, 900 and the outstanding paper
totals $5535OO,00 leaving the govern
ment a margin of legally issuable paper
of about $45,O00,000.
The government perfectly under
stands the purpose of the assault upon
its credit. At the ministry of finance
the Associated Press was authoritative
ly informed that the situation of the
government has not greatly changed,
financially or economically.
"All depends" continued the official.
upon political developments. If the
government possessed thrice its present
reserve 1t would not suffice to prevent
the present scare. which like all habits,
must run its course. But we have
ample resources to meet our obligations
and the present demands. 1t is nom
sense to talk of the government de-
faultng the January coupons and of
tits inability to take up e short term
treasury bonds sold to the Men
delssohns, which are due in February.
Much has been made of the possible
inability to collect taxes in many prov
irces AS matter of fact the entire
direct taxation in the cities and coun-
try is $67, 500, 900 and the tax on indus
tries $33,500.O00. If both were altogether
lost it would be less than one-tenth of
Russia's total income
The only break in the ranks of the
telegraphers is reported from Kazan,
middle Russia. Elsewhere all the gov
ernments attempts to resume tele-
graphic communication have been un-
successful. In this city there was a
partial resumption of mail delivery by
means of volunteers, but it requires
two policemen or two soldiers to escort
every carrier. In the postoffice the Of
ficials who can be spared are working
in other departments with volunteers,
some of whom are of high rank. Prin-
cess Olbensky, Princess of Huebin
Countess Merinoff and Countess Ozer-
off are sorting letters in the mailing
room.
At one mail station the strikers stole
a march on the military. The guard
of soldiers had gone to dinner, leaving
their rifles stacked outside. The strikers
raided the station and hammered of