New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-03
A NEW RUSSIAN LOAN.
APPEAL TO THE DOUMA.
Finance Minister'S Speech = N.
KuttIer Charges Extravaganza.

s.. Petersburg, April 2.-The lower house %
parliament to-day began the discussion OF the
budget for 1907. NJ. KOkOvsoff. the Minister Of
vrinance appealed for immediate consd-
Grafton of the budget. pointing out that though
she government could not be forced into Iiqui-
Estion by the refusal of the lower house TO
Dass the appropriation bills and could continue
making expenditures indefinitely on the basis
NJ preyious budgets. IT was all important 70
Mace the empire on a proper financial basis
re attributed Russa's financial difficulties to
sbree great cause.-the war. the rebellion and
the great famine. These had shaken the pros
rerity OF the country. had weakened its indus
Try and had dealt a staggering blow 10 Its
credit.
The budget had been drafted on the basis OF
she most extreme economy. While the total ex-
Denditures. 81. 236.O00.OOO. showed a nominal
decrease OF S2OOOO.OOO over 1905. the actual
saving was almost S200OOO0O0 The govern
rnent was really spending last year S1.64S.oo0.-
200 owing to the extraordinary expenses. fam
ine relief. etc. instead Of S1.255.OoO.OOO con-
ternplated by the budget The Minister defended
tbe moderate nature Of the various items OF or
binary expenditure. the necessity Tor new app
propriations for popular education. the colonial
t,on OF Siberia and other measures. and said
the extraordinary expenditure was SSOOOOOOO
less than IN 1906. although the appropriation
sor famine relief had doubled.
Without the consent OF Parliament II was
impossible 10 increase the revenue by new
taxes, hence, though the ordinary expenditures
oouId be covered in the ordinary manner, credit
operations were necessary IN order 10 cover the
extraordinary expenses and provide the money
needed for the liquidation OF the war expenses
famine relief and railway construction. This
made a new loan necessary, but the government
a. she Hu TTvf4l0 IN
country.
NJ. Kuttier, Constitutional Democrat former
Minister. in reply, assailed indirect taxation as
savoritisrn toward the rich. he said only IL per
cent Of the revenue was derived from direct
taxes He showed that s575.O00.0o0 In revenue
was derived from the taxation OF articles used
almost exclusively by the poor. while only $751;
100000 was collected from articles OF luxury. OF
the sS5sOOO,OOO IN revenue from the spirit
monopoly. only IL per cent was derived from
the better grade, the rest being collected on the
miserable spirits supplied to the poorer classes.
The high tariffs had greatly increased the cost
OF living The excise taxes petroleum, tea
and sugar were high that they lessened tho
consumption OF those articles. Even the direct
taxes fell chiefly on the poor, two-thirds OF the
land tax being paid by the peasants. while TIE
city taxes were mainly paid by those who rented
houses and apartments.
All the state enterprises were extravagantly
conducted. II. Kuttier mentioned as an example
the imperial stud, where, he said. each horse
cost the government $3.50 and was sold on an
average for $780, The bureaucracy. ~ Kuttler
said was overburdened with employees and en-
numbered with useless departments. such as the
censorship and the Surveillance OF the zenstvos,
which should be eliminated entirely. as being
out OF harmony with the imperial manifesto OF
October 80 1905 n. Kuttler called attention
10 the fact that the Department OF Education
and Charitable Institutions, under the Empress
DOWager, with expenditures amounting TO sew
eTal millions was not included IN the budget
statement, its accounts not being subject 20
audit by the authorities.
in conclusion. H. Kuttler analysed the public
debt amounting TO 81. 5000O0O0O with an an
nual interest charge OF $101O00000. saying that
only SLIGO 0OeOO0 had been expended on rail-
roads and productive works, while 81. $50 100000
had been spent for war The credit OF the coun-
try would be restored - a constitutional form
OF government was instituted and the power
over the national purse was given TO parliament.
IN other civilized countries.
After speeches from NJ. Struve Constitutional
Democrat. and others the discussion was adj
journed until April 4. without a vote being taken
on resolution OF the Constitutional Democrats
providing for the acceptance OF the budget.