Daily Kennebec journal., 1906-01-12
Shows That Cost Of War
Was $|,o5o,ooo,ooo.
Credit Must Be Strained to
About S240,500,000.
WiHe Tells Car His Finances Are
in DepIorahIe Condition.

st. Petersburg, Jan. 1.-THE budget
statement for 1906, which was issued
tonight, shows that it will be necessary
to raise S24O,500,00O by credit operations
TO balance the estimated receipts and
expenditures. The latter includes $o02,-
100000 for the liquidation Of the ex-
penses Of the Russo-Japanese war, the
repatrition 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. $1,05OOOO.O00. is
revealed.
The credit operations to balance the
budget include the recent authorization
of $2OO,OO000o in treasury bonds, $,5,-
000.0GC of which have already been
used to renew the MendelsOhn loan and
the credit of 100000 900 which Former
Finance Minister KOkovsoff is now ne
gotiating in Paris. The primary OBJ
jccts Of the latter. the proceeds of
which will be retained in Paris is un-
derstoOd by The Associated Press to be
the maintenance of the stability of the
roube.
The budget statement does not dodge
the prevailing conditions in Russia. Ii
is pointed out specifically that the re-
CeiptS from nearly all sources have
been scaled down and moreover it is
stated that if the disorders in the in
terror do not cease there may be some
branches of revenue OH which it will
be impossible to count. The budget
deals frankly with the heavy drain on
the gold reserve of the state bank bal
ances abroad which have fallen $1o5,-
5G0,00) in the three months preceding
Jan. l.
During the last 10 days of the year
the gold reserve was reduced by $780,
800, 900 while the issue of paper cur
rency was increased by S20, ,00O, 900.
The increase of papcr Issued, the
statement says, was made by the bank
in an effort to come to the rescue of the
business interests which were almost
paraiyzed and which had been refused
loans by private banks owing to the
panicky condition and to the reduction
of the foreign credits of houses with
connections abroad.
The statement concludes with the
following address t. the Emperor
which was evidently penned by Count
Nitte:
These facts and figures submitted to
Your Majesty show that the present
situation OF Russian finances is none
too favorable This state of things is
the result of the war ana of the
troubles which followed. These troubles
are Of a temporary character and it is
fair to assume that they will be amel-
i"ratcd in the future. Periods OF eco
Eomic depression, history proves, are
ordinarily followed by periods of activ-
ity and prosperity. Economic agitation
multiplies the energy of the ablest and
most enterpriSing elements of the ma
ton and arOuSeS the laboring masses
to perSevere i'm their work which cam
not fail to better the industrial situa-
ton of the country and likewise the
finances of the state. Conditions favor
able Tor the appearance of a period of
fruitful work must be perceived even
amidst the gloom of the present hour
With each day the popular conscience
must be awakened more and more to
n realization of the true material needs
of the fatherland.
THE awakening of the social forces
has q sure guarantee in the independ-
ence granted to the Russian nation by
your august will and in the equality
before the law which has been assured
to all Your Maiesty's subjects"