Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-25
BUDGET Is BADLY TIED UP
Proceeds of Late Loan Already Ex-
hausted.
WAR CHEST OFFICIALLY FULL
Can Hardly Be Improvement in
Revenues for Some Years-Dis-
couraging Outlook.
BY WILLIAM z. CURTIS.
Special Correspondence OF The Star and the Chicago
Record Herald.

BY WILLIAM z. CURTIS.
Special Correspondence Of The Star and the Chicago
Record Herald
ST PETERSBURG, July 80. 1906.
The constitutional democrats and other
members of the late duma consider that the
car, by dssolving that body, put himself
in a hole financially, from which nothing
but a new duma can rescue him. They make
an important point of this in their manlres-
to to the people as follows:
THE government, without the assent of
the popular representatives, has no right
to collect taxes from the people, nor to
summon the people to military service
Therefore. now that the government has
dissolved the duma. you are justified in CIV
ing il neither money soldiers. Should
the government contract loans in order to
procure funds. such loans will be invalid
Russian people will never acknowledge
them. and will never be called upon to pay
them"
Article 76 of the fundamental law. de-
scribing the powers and jurisdiction of the
duma, reads as follows:
rs State loans to meet budget expenses
are authorized to be made according to the
procedure provided for the confirmation of
the budget State loans to meet expendi-
lures within the limit prescribed by article
"A. and TO meet extraordinary OUTLAWS per-
mitted by article rs may be made by his
majesty the emperor representing the SUI
preme administration"
Article "a provides that whenever the
duma neglectS or refuses to make appro-
priations for the support of the government,
the appropriations for the current year re-
main in force. and article 70 authorizes the
emperor to obtain means to prepare for
and carry on war in the absence of the
duma. Article -, which Is even more peril
nent to the subject. reads:
During the deliberations of the duma
upon the imperial budget the appropriation
for the payment of the interest upon the
public debt and to meet other obligations of
reduced"
Law Full of Holes.
The popular Interpretation of these pro-
visions Is that the car has power to pro-
vide means to carry on the government in
great emergencies without the cooperation
or ratification of the duma. but that body
has joint Jurisdiction over everything that
relates to the regular budget. And 1t is
assumed that a revolution wculd be con-
strued an extraordinary occasion within
the meaning of the constitution. But
thus far shown very much respect for this
fundamental law or constitution they
call It. 1t Is not yet three months old. and
they have already kicked it full of holes"
1t has been trampled upon daily by the
ministry and the police. who not ac-
customed to restraining statutes. If min
to prevent somebody else from doing any
thing, he never has difficulty in finding
law to At the case. and IL it does not fit
they will stretch 1t until 1t does. For ex-
ample. article 81 of the constitution says:
Everybody is free within the limits pro-
vided by law to set forth his ideas by words
or In writing as well as by the press, or
any other means Of publicity"
Yet every newspaper in st. Petersburg
but two has been suppressed within the
week. Section 80 says that Russian sub
fha ri 70 nnfva natfv
for purposes that are not contrary to the
laws without disturbing order and without
arms. and yet no meetings whatever are
permitted to be held In ST. Petersburg. A
caucus of the leaders of the constitutional
democratic party in private residence
was broken up by the police yesterday and
8 social club frequented by the members
of that party has been closed for fear they
will meet there for consultation.
Therefore 1t may be assumed that no
provision of the constitution will be al
lowed to interfere with a loan, provided
the party of the other part is willing to
take the chances. But the banking COM
munity will be apt to take a more critical
view of the meaning of the sections 1 have
quoted. particularly as long as the i'm
perial finances are in their present deplor-
able state. 1t is extremely doubtful
whether the government can borrow a dol
lar now or in the future without the rati
fication of the duma, any terms. Last
April S4O,000,OOO was borrowed in France
on usurious terms, and 1 understand that
bonds should be issued for any purpose
before the expiration of two years.
Treasury Empty.
1t is no secret that the proceeds Of the
late loan are already exhausted and that
the treasury Is again empty. According to
official assurances the famous war chest
has not been depleted, and any reputable
newspaper correspondent or financier with
card from his embassy can examine the
chests full of gold and even handle the
coin at the national bank. This optical
demonstration is made almost daily in order
to stimulate the imperial credit. And it
may be necessary to dip into the war chest
to pay the bills of peace. because 1t is
doubtful whether the means can be obtain
ed from any other source. Eighty million
rubles were needed on June 80 to cover the
deficit in the regular revenues of the gov
eminent, and the minister of finance, re-
Gently addressing the duma. announced
that forty millions of rubles would be re-
quired Immediately to save the population
OF the valley of the Volga from starvation.
No provision has been made for either pur-
pose. Next year the receipts and expendi-
lures will be even farther apart than ever,
and no provision has been made for that
case.
The statements regularly issued by the
finance department OF the government are
not considered entirely accurate by the
bankers of Europe, who call them window
dressing" but We can give the figures for
what they are worth:
The receipts for the fiscal year 1906 are
202I .SJS, IA rubles. against 1877 ,O45. 61S
for the corresponding period la 1895. This
shows increase for the year of 80, S12, 1886
rubles. which is declared fictitious by al
most every banker in St. Petersburg, because
the financial and industrial condition OF the
country is in terrible state; the govern
ment is receiving nothing whatever from
the peasants: several of the largest liquor
depots belonging to the state have been
destroyed With their contents; one-seventh
of the entire population Is on the verge of
starvation and not less than 4. 1924. 7S9
rubles of revenue have been relinquished to
rnollify the peasants who owed that money
for land that was sold their ancestors at
the time OF the emancipation of the serfs.
The ordinary expenditures of the govern
ment for 1906 were 2.0lS.0T6, J55. an ad-
vance from 1.9i6o65.571 from 1905, a diff
ference of l02 $4,000 ruhles.
III these figures are correct the deficit
should be about 50.000OOO rubles, but the
finance minister has already conceded that
Il is so 600 600. The recent French loan
was used to pay for dead horse-SiO0,37
TT5 OF war expenses outside the regular
budget.
Notwithstanding the financial depression