Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-16
RESOURCES OF RUSSIA
No Need to Make Peace for
Lack of Funds.
MILLIONS IN RESERVE
STATED THAT RECENT GERMAN
LOAN IS UNTOUCHED.
View of the Fiscal Condition of the
Cars Government Based Upon Of
fetal and Unofficial Information.

Now that the czar has announced his in
tention of continuing the war, the greatest
interest turns on Russia's financial position
and the question whether or not she has
the means of keeping up the fight against
Japan even if she has the desire.
The situation, near can be ascer-
tanned from official and unofficial sources,
is as follows: Russia up to the present has
negotiated two foreign loans in France and
Germany aggregating roughly $400OOO,OOo.
Her expenses in the war are, taking the
higher figures given by competent finan-
ciers, $2o,0G0,G00 per month, and the war
has now continued about fourteen months.
AS a matter of fact her expenditure in
the past year for the war was $780,, COS. 600,
as shown by the treasury returns; but 1t
is stated by officials that portion of this
was initial expenditure that would not
have to be repeated, so that the $40, 900 600
month expenditure would hold good for
the continuation of the war. 1t must be
remembered, of course, that Russia has
lost heavily in stores and supplies de-
stroyed during the retreat from Mukden
and while it is impossible to say just what
this loss aggregates, it must be regarded
as an abnormal expenditure and added to
the supposedly regular monthly cost of the
war.
Recent German Loan Untouched.
1t is stated, however, that her last Ger
man loan of roughly $S0,0O0000 is still in
the treasury, untouched. About the $125,
000,000 loan which it is just announced has
been postponed in Paris there are two
statements, one from the Russian and the
other from the English, which is, of
course, the most intensely anti-Russian
side. The Russian authorities say that
the arrangements for this loan have al
ready been concluded, and that the under
writer's are already bound to furnish the
money, while the postponement is merely
temporary. This probably is true to a
certain extent, and the French syndicate
simply wants to get better terms, which
Russia is unwilling to grant It is said
that the French banks would be glad to
issue the loan at 80 instead of 95 the fig
ure first agreed upon, and the Russian
authorities are willing to compromise on
81, but will not go lower. The dickering
over this point may continue for fort
night
1t is stated, on the other hand. from
English sources, that Russia's foreign
credit is entirely exhausted, and that the
French postponement is tantamount to a
refusal, and that the French loan will not
be made at all. 1t is pointed out that
there is already about three billions OF
French money invested in Russia. and
that the banking syndicate is not willing
to extend Russias credit further.
Millions in Reserve.
Assuming that this is true, and that
Russia can get no more foreign money,
which Russian officials do not admit.
there remains the question of the gold
reserve in the Russian treasury and state
bank.
1t is of course well known that the Rus
sian law provides for a gold reserve of 90
per cent to keep the ruble note at Its lace
value up to an issue of GO0O00,00o rubles,
or $500 OOOO90 After the 900 limit
ma he b.
equal to the notes issued ruble for ruble.
The bank note circulation at present is
S2S 0G0.C00 rubles. This is covered by the
gold reserve according to law, and there
remains in the state bank and Russian
treasury a surplus of $711, 900, 900.
If Russia wished to go to her gold reserve
for war expenses she could at this rate con-
tinue the war for another year at the eX-
penditure of S20, ,00o00O per month and still
have $115, 100000 left at the end of that
time. The amount of gold in the treasury
and the state bank on the first OF the year
was officially reported to be 1,239, ,OO0,00O
rubles.
1t should be stated also that Russia S
normal income and expenditure leave a
trif1e of 61 ,O00, 600 rubles surplus. Thus last
year the income from direct and indirect
taxation stamps, government monopolieS,
such as vodka and brandy, and the govern
ment possessions, which include railways
and forest lands. totaled 1877 coo 900 rubles,
against which there was budget expendi-
Red Cross comes out of the stamp tax,
which is included in this sum.
The Holy Gold Fund.
The mythical ''war chest" about which
so much has been said and written is SIM
ply the gold reserve in the treasury and
has been set forth in the above statement
OF course there is last resource which
any pious Russian would be loath to touch.
nd ha iS he MOI ct
alluded to as 1.-The holy gold fund" This
is a picturesque way of putting it, but il
means simply the immense quantities OF
gold and jewels accumulated in the church.
es of Russia, and which under stress of cir
cumstances might be used for national re-
sources.
The amount of money is enormous. 1t is
hard to estimate it, and Russians are not
prone to talk of it, but it is said to aggre-
gate something like $3.50, 100000. But before
that fund was touched there would be a
number of expedients to be resorted to by
the minister of finance in the way of in
ternal loans and the issue of treasury
bonds.
1t would therefore appear that there is
no Immediate necessity of the war ending
for lack of funds. OF course anything may
happen in diplomatic negotiations, and 1t Is
always possible that, as has been suggest
ed from English sources, Russia is really
about to make peace and is merely trying
| to bluff out the best terms possible.
The other view, however, has been ex-
pressed by Russian officials here, though
necessarily not for quotation. That is thai
Russian prestige is a more real thing thar
| is realized abroad, and that it is impossible
| to make peace with Japan except as a vic
tor debating terms, and that there is ar
abundance of both men and money in the
country to enable Russia to wear Japan ou
physically and financially, and that she Il
going to do 1T.
/