Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-04-18
FINANCES OF RUSSIA
Fiscal Relations of the Empire
With France.
IN DEBT FOR GREAT SUMS
Seeking Now to Borrow $500, 900, 900
More.
MUST LOOK TO GERMANY
Strong Protests in the Republic t.
Advancing Any More Money to
It's Northern Ally.
N DEBT FOR GREAT SUMS
lust LOOK TO GERMANY

AS naturally as day follows night. 50 40
the fortunes of a country reflect upon lis
finances. AS soon the peace OF its peo-
pie gives way to instability the treasury
suffers from weakness. either natural or
forced. This is true In the case OF Russia
today which is in the midst of political
change, heretofore uudreaYnt of for that
nation. Reports-official Of course-tell us
every day that Russia never better
financially than she is today. considering
her great and disastrous war, etc. But
this question brings TO mind the monetary
complications of the empire they are re-
lated to France. which has been the CHIEF
source of money lending to Russia through
out her conflict with Japan.
Russia today Is asking for loan or
$500, 100000. and. II possible, Ss@ostieo
She will offer substantial and gilt edge Sc
curity TO the parties loaning the required
amount. which Russia claims she needs 70
carry out her policy OF regeneration ana
ameloraton said prominent diplomat
today. But so far as | can see. nobody
has come forward with the millions OF DOL
lars she wants. AS for the source. II any
source there is, | should say II must De
German, because France is no longer IN
clined to advance more funds. In TACT,
France today is strongly protesting against
any more Russian loans and her interest
Is centered in saving her money-the baga-
telle of 1900 0ou000 francs-from the vortex
of destruction which threatens the empire
today.
''Ail the great men Of France have agreed
on one point-that is to say, that France Is
in the position of one who allows her nance,
before the marriage. To take possession or
her dowry Before receiving satisfactory
proof of the real sentiments OF her ally
France has imprudently loaned her all her
money How much does the loan amount
to? You might We'll ask me how many
fish are in the Atlantic ocean In her en-
pacity OF generous lover, unable TO reckon
the amount and blind 10 the security given,
France has given whatever Russia has ask
ed Here France seems to have lost All
notion of foresight From the financial
point CT view she is still in the honeymoon
so to speak. and there has been absolutely
no restraint put the emigration of the
French public fortune. The republic. more
over. in addition to making large advances
to her august ally has saved and maintain
ed her credit
Protests of the French.
"And what do the French cry? They
protest They say: For Russia-always
for Russia, There was a war of madness
France furnishes the money. Russia lost
her feet. and then was defeated In NUM-
Der OF great battles: the stupidity of her
generals and the shameful corruption Of
her administration known to the whole
world. but France furnishes the money The
world has begun to lose all hope for Rus
STA, still France furnishes the money. An
internal revolution breaks out; the Rus
sian government finds itself at war with
its own laboring classes, with its thinkers
portend the overturn of the empire and the
triumph of the revolution bombs bursting
on all sides make known in dark. sinister
tones the breakup of the nation-and
France still furnishes the money
who can conceive the ma grtude of the
amount that Russia owes France today2
And who can foretell how France is going
10 get ii all back. TO say nothing of the
lost interest? In October. 1904, Russias
debt to France said to amount 10
u, 900. 100000 francs, but as far back as
,t..r nr.x Il
IL 600 600. 00Q francs, and certain economists
have gone far TO put the amount at
fourteen or fifteen thousand millions OF
francs
servativeIy, at 5000, 100000 francs (about
81. 500 eco, COO the minimum. we can
make no mistake. The sum. moreover. is
accepted as correct by the official repre-
sentative of the Russian treasury Al the
latest computation TWO years ago.
Frances immense sacrifices of money
have given her the right TO speak plainly
TO the empire. The contingencies which The
republic has to fear are many. The duties
which she owes TO her ally are-what?
Russia's Immense Debt.
'If we go by statistlcs-trustworth s;a;e-
ments made by the proper financial author
tiles of Europe-we find that Russiss pub
lie debt surpssses the public debts of Prus-
STA and ali the German states put together
II has risen from l. i23. 090.GD0 rubies in
fourteen years of peace There are other
Liabilities besides, such the railways
guarantees OF the treasury and others. It
must be borne in mind that all the money
borrowed from France has been spent on
useless ornaments or reproductive indus
tries. When we reflect the sacrifices OF
every kind which the war has nece seitated
ii is easy to understand that the material
position of the Russian empire will be de-
fective for many year.
The Russian people recognized the folly
Of fi.zaFH
agreed TO end the conflict not when Witte
scored his so-called triumph but only
when France had been sounded on all sides,
and refused to loan more money The Rus
sian government never had the moral cour-
age shown by Italy after her defeat by
Menelik of Abyssinia. when she admitted
men and property, and thus won the re-
spect of the entire civilized world.
Russian Statistics Misleading.
Another risk" explained the diplomat.
sis the varying value of the rubIe. Again.
the state bank of Russia unlike those
of France. England or Germany. is not In
dependent of the government. There Is,
truly, little serious financial control In Rus
STA The Russian treasury has always
been known TO be liberal with its statistical
data on receipts and expenditures. but IL
takes an expert 10 that the items are
complex and the totals misleading. Ofcal
figures given out at the time show that
while Russian expenditures increased IN
1904, the receipts ndu gone up IN IKE pro-
portion; but on closer examination OF this
budget we find that the SUM borrowed from
France in 1904 figured In the receipts
France. apart from her material inter-
ests must not forget her moral interests
Seeing that the division between the Rus
sian government and the Russian people Is
so great France could not in justice. aid
the bureaucracy which oppresses and ruins
the people.
Affairs In Russia have not advanced
rapidly since the close OF the war Al
ete
slams 10 make the best az what they have
she should not jeopardze her own interests
To try TO save her past loans by making
more loans is folly. The republic cannot
lend in any manner more money to that
threatened nation. because the risk Is TOO
great.