New-York tribune., 1906-08-25
NJ NEW RUSSIAN LOAN.
ENOUGH FUNDS ON HAND.
Nert Foreign Bo,rosCing WiU Have
ParEament's ApproOGl.

ST. Petersburg. Aug. 24-Efnance Minister
hokovsoff to-day authorized denial of the con-
stantly recurring reports. both at home and
abroad, that Russia intends 10 enter the foreign
market for a new loan this autumn. He said:
The government has ample funds in sight 10
tlde over the present year. THE only loan oper-
auon contemplated-namely. the S25,oOO.Ooo i'm
pef1at loan for famine relief-was consummated
to-day by the signature of the Emperor. This
ioan is already being taken by the government
savings banks
Even If we desired it, we realize that no for
eign loan could be advantageously loated with
out the assent of parliament and you may state
emphatically that the government will not again
try to contract foreign loan until parliament
approves II. Fortunately the treasury can see
daylight ahead until parliament again as
sembIes.
Indeed. the financial situation. it stands is
better than could have anticipated. The sur
plus for the first six months of the current year
will exceed the estimates by S5OOO0OOo and, as
the last six months always are the best from the
revenue standpoint the excess for the year
should exceed S100000O00 more than sufficient
TO meet the extraordinary expenditures In CON
nection with the suppression of the revolut1oh
which directly and indirectly has cost in the
neighborhood of $1,000 900 month.
With the proceeds OF last springs big loan,
which netted Russia only So although issued
at So, and the surplus Of revenues we can
hquidate the war expenses, this years deficit
and pay off S34,500,00O of exchequer Dllls sun
due Germany and payable next month This VIII
leave in addition some S3O,oOO,OOO OF interior
bills and S5OOOOO0O outstanding in France. but
the latter is not due until the beginning OF next
year
The effect of the viborg manifesto upon the
revenue will be practically nil. The direct taxes
paid by the peasantry are only for zemstvo ana
local purposes and none of them come 10 tne
masses are entirely indirect, the major item be-
ing from the brandy monopoly, the revenue from
which. instead Of decreasing, increased SlI'-
100000 during the first six months of the year
There is nothing alarming in the financial
situation, although in the final analysis every
thing depends upon political developments. Bad
politics makes bad finance.
It was further explained by NJ. Kokovsoff that
the big project for the distribution of 25.OOO0CO
acres OF land among the peasants. upon which
the government has decided Immediately to en-
bark from which great hopes Of measurably ap-
pealing to the discontented peasantry have been
built, does not involve any charge upon the
Treasury.
The Peasant Bank will issue in exchange for
land two species of scrip. With view to pre-
venting a flood of paper breaking the money
market too heavily before ii can be absorbed.
nominative scrip. bearing per cent interest
VIII be issued. the venders agreeing not to place
It upon the market for five years, while only
per cent debentures will be issued. payable to
bearer.
The Emperor and the grand dukes will accept
the norinative scrip and In effect the imperial
family Will simply convert their land holdings
into per cent securities and be relieved Of all
the expense Of management Of crown lands and
appanages. which absorbs at present large
share OF their revenues.
The period of amortization through instalment
payment by the peasants has not yet been
fixed. The majority opinion favors thirty-three
years, but smaller payments covering period
as high as sixty years also are advocated. Un-
I'll redeemed. the debentures and scrip will con-
stttute blanket mortgage
n ha Of igfr fhntf Of
lands all the energy of the government Will be
devoted to the dissolution of the existing COM
munistio systems. which now cover two-thirds
OF the peasant holdings and allotments to the
peasantry will be made in severalty TO instil
respect for the principle Of private property. If
successful. the government confidently expects
that the peasantry will boone conservative and
set their faces against sociaIistio dreams OF the
naturalization Of land.