New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-12
THE RUSSIAN BUDGET.
VAR COST 100000, 900.
Financiers Must Raise SEQ, 10000
to Balance Estimate.


st. Petersburg, Jan. 1.-THE budget state
ment for 1906 which was issued tonight, shows
that it will be necessary to raise S240, 900 by
credit operations to balance the estimated re-
ceipts and expenditures. The latter include
s202,500.000 for the liquidation Of the expenses
of the Russo-Japanese war, the repatriation of
the troops in the Far East and the reduction of
the army to peace footing For the first time
the total cost of the war, s105O,OOO.OO0 Is re-
vealed.
The credit operations to balance the budget
include the recent authorization of s200,000,000
in treasury bonds, s75.O00,000 OF which have
already been used to renew the Mendelssohn
loan, and the credit of $3.50. 100000 which former
Finance Minister Kokovsoff is now negotiating
in Paris. The primary object of the latter. the
proceeds of which will be retained in Paris is
understood to be the maintenance Of the sta
bility of the ruble.
The budget statement does not dodge the pre-
vailing conditions in Russia. 1t is pointed out
specifically that the receipts from nearly all
sources have been scaled down, and, moreover, it
is stated that if the disorders in the interior do
not cease there may be some branches of
revenue on which it will be impossible to count.
The budget also deals frankly with the heavy
drain on the gold reserve of the State bank
balances abroad, which have fallen off $751;
100000 in the three months preceding January
1. In the last ten days of the year the gold re-
serve was reduced by $S0.5Oo.0O0, while the issue
of paper currency was increased by S2O,000,0O0.
The increase of paper issued, the statement
says. was made by the bank in an effort to
rescue the business interests. which were almost
paralyzed and which had been refused loans
by private banks, owing to the panic condi-
tons and to the reduction of the foreign credits
of houses with connections - The state
ment has this to say Of the monetary situations
Such a state of affairs could not fail to in
splre diSQuietUde, for our monetary system was
nnenaced simultaneously by the diminution of
the stock of gold. resulting from withdrawals
which the bank was powerless to prevent, and
by the exodus of capital abroad and the increase
of paper circulation. the latter being due to the
necessities of the interior It is permitted how
ever to hope, thanks to the restoration Of calm,
that the causes which influenced the with
drawals Of gold will cease, and that coin VIII
soon begin to return to the bank The ameIo-
ration Of the situation which is anticipated
should soon restore something like normal con-
ditions in the interior, revivify credit and thus
diminish the demand for money for business
affairs.
The statement ends with the following. adj
dressed to the Emperor, which was evidently
penned by Count White:
These facts and figures submitted to your
majesty show that the present situation Of Rus
sian finances is none too favorable, This state
Of things is the result Of the war and Of the
troubles which followed. These troubles are of
a temporary character, and it is fair to assume
that they will be ameliorated in the future.
Periods Of economic depression history proves,
are ordinarily followed by periods of activity
and prosperity. Economic agitation multiplies
the energy of the ablest and most enterprising
elements of the nation and arouses the labor
ing masses to persevere in their work. which
cannot fail to better the industrial situation of
the country and likewise the finances of the
State Conditions favorable for the appearance
of period of fruitful work must be perceived
5In44 crIrO of
With each day the popular conscience must be
awakened more and more to a realization OF
the true material needs Of the fatherland.
The awakening of these social forces has a
sure guarantee in the independence granted to |
the Russian nation by your august will and in
the equality before the law which has been as
sured to all your majesty'S subjects.
The budget estimates the ordinary revenue at
81 O13 9293S7, and the ordinary expenditures at
$1,000 O3S,275 The extraordinary revnue is es-
timated at 81 100000 plus S24O. So. 900 from i'm
pending credit operations, and the extraordinary
expenditure at S246.44S112. The total revenue
and expenditure balance are estimated at |
81. $50 1868
The following In round numbers included |
in the receipts: Direct taxes, $74000O00; in
direct taxes, S212, 100000; duties, $54.000,OOO; !
state monopolies. $500 100000; state domains.
1921, OO0, 900.
The ordinary expenditures, in round numbers,
include the following: State debt, S167.000,OOO'
Ministry of War. $1S7.00O.O0O; Ministry Of the
Navy, S52 600; Ministry Of Finance. S171'-
10000; Ministry of the Interior. $65.5OO'OoO;
Ministry of Communications. S238,500, 900.
The extraordinary expenditure. in round num-
hers Includes For the Russo japanese War,
S202 500 900; for the building of railroads, S21-
600 OOO for the relief of sufferers from the pad
haryests $4,000 00O in loans for the restoration
of the naphtha works. S7,500,0OO.
In the budget statement 1t Is announced tndt
will be issued giving the nation the
rIgbt TO participate in the examination Of future
budgets This therefore. will be the last budget
to be examined solely by the Council of the En-
hire without the cooperation Of an elective as
senbly Il is further stated that the surplus Tor
1905 will be greater than was at first estimated