The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-12
RUSSIA FACES NEW DANGER.
NO MORE LOANS UNLESS MOVE
rs MADE FOR PEACE.
Financial Ultimatum Increases the CLar's
Troubles Demand That Concessions
lie Made ut Home or Overtures 10 Japan
Situation Now Plain to the Gar.

Troubles Demand That Concession
lie Made ut Home or Oyertures 10 Japav
Situation Now Plain to the Gar
Special Cable Deipaieh to The Sun.
! LONDON, March il.-Peace with Japan
or peace at home! Such il the financial
| the only sources available for providing
/ the sinews of war French and German
bankers are forcing upon Russia a deci don
a. to her future policy with scarcely less
potent pressure than COMMANDMENT Chief
Oyama ia exercising in Manchuria.
The financial situation for Russia. while
not Immediately critical. threatens the
gravest difficulties In he not distant future.
An enormous drain. sc ,ond only to the cost
of the war itself. has been suffered by the
national treasury through the necessity OF
supporting the national credit in foreign
markets. To do this immense sums have
been expended in maintaining the prices Of
Russian securities. Purchases OF national
bonds have OF course cancelled large blocka
of obligations at discount, but these pur-
chases speedily exhaust the cash, which
must be ecouped by fresh loans. The
terms for these loans are steadily becomin &
more onerous. and the process threatens to
be endless with an increased loss on each
repetition,
1t follows that Russian credit which IL
atf "a. DOT ip,ta at
present prices. Nevertheless, it would
quickly improve II Sane policy Of peace in
the Far East and reform at home were
adopted. The great finanoiers Of Europe
have begun to fear that such Il policy viii
not DO adopted except under such com
pelling pressure AS they and they alone
will be- able to bring to bear,
1t may now be said plainly that they viii
not hesitate to apply that pressure in the
near future remorselessy II necessary.
They have already intimated In the clearest
terms their refusal 70 finance nation
whose present policy will lead TO certain
disaster Their advice Ia immediate peace
with Japan on the best terms obteinable
They are willing TO supply the funds for the
payment OF any reasonable indemnity
that may be included in the peace terms.
1t is known that the Car is strongly
averse at the present moment to sacrifice
his pride 10 this extent He argues that
she withdraws TO Lake Balkal and spends
i Few years In preparing for revenge while
/! nominal state Of war Is still continued
Japan could never seriously threaten the
Did Russian Empire, while her resources
would be rapidly exhausted. The men
who must supply the enormous sums neces-
'ary for such programme reply that suoh
4 thing Is possible only II Russia is united
and patriotic and is willing 10 make the
great sacrifices involved.
Harmony can be restored only by sweep
ng concessions TO the popular demand.
md this transformation could only be ac-
,ompiished with the greatest difficulty
n time Of peace. 1t is imperative to at
empt It even now II the war Is TO be con-
lnued, and it must be done quickly, thor
,ughly and ungrudgingly.
1t is impossible to know which Of these
Jews and suggestions are most distasteful
o the Gar. This much, however, THE
SUNS correspondent Is able TO say They
ave been put before the Emperor in the |
)lainest terms. He knows now in a manner
hat must be convincing even 10 his intelh- |
,ence that he will find himself face to face
With bankruptcy few months hence unless /
,e makes peace at once either with his own /
ubjects or with the Mikado. His decision 4
% far as known has not yet been ma de
t Is the knowledge Of his dilemma which
las caused the appearance Of definite rumors
o-day Of the opening OF peace pourparlers
hrough France. II he hesitates OF vacil-
ates as he has done in all other critical
the consequences TO Russia
vii be appalling.
European diplomatists anticipate almost
With despair the difficulties Of reaching a
uocessful issue when the negotiations for
,eace have actually begun. Nobody out
ide Of Russia believes II possible to deal
with tho internal crisis without
Inst making peace with Japan. 1t ia as
umed. therefore, on all sides. that In the
ace Of the present financial ultmAt,lm the
Ear win grudgingly consent to ask terms
rom the Mikado.
1t is unnecessary, Of oourae, to suggest
o Japan how to deal with the situation,
tut there is only one opinion in European
Iiplomstio circles Japan should decline
o enter into detailed negotiations, for no
conclusion is possible in that