The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-17
Aspects OF the Russian Loan.


done since the war began is Of SO
much significance in its long range
importance rs -ttp $4,000. 900 loan
to the Russian Government just ne
gotiated. As IL banking transaction
the arrangement Is ingenious and the
terms are profitable. The immediate
effect will be to facilitate the large
commercial exchanges which We are
making. denoted 10y II tenfo,d Increase
In our exports to Russia since the
war began. II is. however, In its pos
>iblli';es ns nm inauguration of per
munrntly profitable relations with the
land of the Car that the loan Is OF
most consequence.
Russia has always been II heavy
borrower. Its national debt before the
war was large. and of course has
grown hugely because of the war.
The dependence which Russia has al
ways placed IN borrowed money. cs-
pecinlly on external loans. has caused
n mistaken view of Russian prospects
To be expressed frequently among us
In unfavorable opinions of Russia us
a debtor, hut in the main these opin'
ions are affected by "A prejudice not
germale to financial facts.
In proportion to the latent re-
| sources Of the Russian Empire, both
In population and undevcloped nat
ural potentialities of wealth. Russian
indebtedness is remarkably small
Under more progressive conditions
conducting to an efficient organization
of the Russian people. econoInicall!
and politically. II would be n compare
lively light task for Russia alone tt
assume the whole burden of the totu'
debt of Europe On account ~ tho
present war. There is M country in
volved in the great conflict which il
So likely rs Russia to benefit from
the stimulus 10 energies which thu
war has provided. The Russian PEG
pie will gain new consciousness o
national unity and power.
The truth about Russia was sue
clnctly told the other day by RAY
Mo>D RoRiNs in his address as TEN
porary chairman of the Progressive
convention in Chicago. He suid tina
after the war there would b" tire
great nations unspent. with power L
speak and serve in the advance o
social order throughout the world,
His reference was to Russia. Japn'
and the United States, and of Ru'
sin he said: Her 16O.UW ,WU q
people. her vast natural resources
her fertile lands, minerals and 70,
ests. will not he exhausted in thi
war. TN the contrary. she is @,
pcriencing n great awakening. Ru'
STA viii speak
As little ms Russian possihilitiF
have been developed. the strain &
war finance seems to have bee
rather easily borne on the whole. Al
!, cnrding tn recent estimates the rat
: of the cost Of the war tn the dpN"
. opcd wealth of Russia is II per cent
: compared with lG per cent, in Ge
many. while war cost II III per cen
Of the national income In leuSsi
T COMPARED with III per cent. in Go
= many. In the ten year period fro
, 1901 to 1911 Rnssln's wealth double
/ and there is no field IF economic I"
e leuvor with which the United STATE
= is familiar that cannot b" success
- fully cultivated in RUSSIA for the pr
u dur'ion Of II prodigious Onttnrn
commodities. goods and materials.
As an Instance Of the opportuI
ties with which American capital
g confronted In Russia the Russian net
$ Of n great transportation indusi
. may be cited. European and .Asint
. Russia together constitute II count
q Of most magnificent distances. The
are vast areas of agricultural al
J. mining lands and forests In he link,
!, by transportation routes, especial
by railroads, to the centres Of pOy
It latiOn, where manufacturing indust