The daily morning journal and courier., 1906-08-25
RUSSIA NOT SEEKING
 A NEW FOREIGN LOAN
FINANCE MINISTER DENIES RE- CURING REPORTS HOME
 AND ABROAD.

Government, He Declares, Has Ample
 Funds in Sight to Tide Over the Press
 ent Simultaneously Loan Operation
 at Present the $25,OOO,OOO One for
 Famine ReIief-This ConsHmmated
 Yesterday - Taken by Government
 Savings Banks.
 St. Petersburg, Aug. 24.-Finance Minister Kokovsoff to-day authorized the Associated Press to deny categor- ically the constantly recurring reports. both at home and abroad, that Russia intends to enter the foreign market for new loan this autumn. "The govern ment," said the minister "has ample funds in sight to tide over the present case. The only loan operation con- templated namely, the $25,000,0O0 irl- perial loan for famine relief, was con- summated to-day by the signature of the emperor. The loan is already be- ing taken by the government savings banks. Even if we desired it we re- alize that no foreign loan could be ad- vantageousIy floated without the assent of parliament, and you may state em- phatically that the government will not again try to contract foreign loan un- til parliament approves of it. For tunately the treasury can see daylight ahead until parliament again assem- bles. Indeed the financial situation as 1t stands is better than we could have anticipated. The surplus for the first six months of the current year will ex- ceed the estimates by S5C,OOO,OOO, and as the last six months always are the best from the revenue standpoint the excess for the year should exceed $1O0,- 100000, more than sufficient to meet the extraordinary expenditures in connec- ton with the suppression of the revo- lution, which directly and indirectly has cost in the neighborhood of $5,O0O,- 0OO month With the proceeds of last NPAlll6 D Dib IOclllI NllISll liGlINQ IlupHleJ only S3, although issued at 9S, and the surplus of revenues, we can llquidate the war expenses. We will only pay off $S4,500.O0O of exchequer bills still due Germany, and payable next month This will leave in addition some $30,000,- 900 of interior bills, and S50,JOO,0 900 out standing in France; but the latter Is r1nf dIfo fInfi1 fGc pA year.
 The effect of the Viborg manifesto upon the revenue will be practically nil. The direct taxes paid by the peas antry are only for zemstvo and local opposes, and none of them come into the central government, whose taxes from the masses are entirely indirect; the major item being from the brandy monoply, the revenue from which, in- stead of decreasing increased $17,5OO,- 900 the first six months of the year.
 There is nothing alarming in the financial situation. although in the final analysis everything depends upon political developments. Bad politics make bad finance"
 iL WtAa lAl tllNl NAPlttlAiGu by M. IAJ~ kovsoff that the big project for the dis tribution of 25,000,0OO acres of land among the peasants, upon which the government has decided to immediate ly embark, and upon which great hopes of measurably appealing to the discon- tented peasantry have been built, does not involve any charge upon the treas ury. The peasant bank will issue in exchange for land two species of scrip. With view of preventing a flood of paper breaking the money market too heavily before it can be absorbed, a nominative scrip bearing six per cent. interest will be issued, the vendors agreeing not to place it upon the mar ket before five years, while only five per cent. debentures will be issued pay ableto bearer. The emperor and the grand dukes will accept the nominative scrip, and in effect the imperial fam fly will simply convert their land hold ings Into six per cent. securities, and be relieved of all the expense of man agement of crown lands and append ages, which absorb at present a large
 
 amortization through instalment pay ment by the peasants has not yet been fixed. The majority opinion favors thlrty-three years, but smaller pay ments covering a period of sixty years are advocated. Until redeemed the de- bentures and scrip will constitute a blanket mortgage. In the process of the distribution of these lands all the energy of the government will be de- voted to the dissolution of the existing communist system, which now cover two-thi1'ds of the peasant holdings and allotments to the peasantry in sever atty, in order to instill respect for the principle of private property. If suc- cessful, the government confidently ex- poets the peasantry will become con- servatiye, and set their faces against socialistic dreams of the nationaliza- tion of lands.