New-York tribune., 1918-01-11
WALL STREET OFFICE:
Mills Building, IL Broad St.

The report from London that the
Bolshevik government is soon to is
sue decree repudiating the ma
tional debt is important, if true.
Excluding advances made by the
United States government, aggre-
eating 1926, 100000, the American
investment in Russian government
securities is very large, amounting
to perhaps 100000, 700, including
external and internal loans foated
in this market 1t was the provi-
sion that "all loans and treasury
bonds held by foreign subjects
abroad or in Russia are repudiated"
that aroused the greatest interest
in Wall Street, because the larger
American stake is in the externals.
There has been much speculation
in these bonds, even since the Rus
sian revolution upset the market.
Many spectators, attracted by the
fantastic yields at the recent low
prices, have bought them. That the
report was not given much credence
in the financial district was evident
from the strong tone of the bonds
on the curb market. The 57as
closed at so, up two points, while
the 61as made a net gain of one
point, closing at 81. The news
came too late in the day to exert
it's full effect upon the market,
however, and a reaction would not
be surprising.
Even if the Bolsheviki should
carry out their reported intention,
the action would not be accepted as
final, at least as far as the holders
of the external loans are concerned.
! Sooner or later the reputation it.
self would have to be repudiated,
for otherwise Russia could not
hope to maintain economic relations
with the United States, Great Brit
ain, France, Japan and the other
countries which have taken her Sc
curities. The few hundreds of
millions Russia owes to the world
would be too high a price to pay
for the international trade isolation
which such reputation would bring.
That is understood and emphasized
even in Germany, whose stake must
be small, if she has anything at all
at stake. The "Frankfurter Zeit-
ung" was much upset at the first
suggestion of Russian reputation
of its debts to the Allies. Several
weeks ago it said:
A permanent reputation of all for
eign obligations would put everything
in the shade which has yet been ex-
perienced from the wickedest and
weakest European debtors-such as
the Portuguese. The history of state
debts, at least in the nineteenth and
twentieth centuries, knows no such
lmpudent case, except in the civilized
lands of Mr.. Wilson. where some par
ticularly distinguished states like
S!COA Sio nave SlIuply UeHlou tnClT OD-
legations. From purely Russian
point of view the procedure must be
described as a terrible risk Russia
needs enormous amounts of capital
for the exploitation of her immeasur-
able natural wealth. Who will pro-
vide this capital after the present ex-
periences? Our opinion will
seem all the more weighty to ali
unprejudiced peSons because the
measure which the Russians an
nounce constitutes an absolute catas-
trophe for our chief enemies. while
we Germans have become at present
one of Russia's smallest creditors.
-. A government like the Rus
sian government, which is so very de-
pendent upon the sympathies of the
rest of the world. ought not to ignore
the facts. If the Russian government
refuses to listen to warnings against
the proposed unconditional repudia-
I ton, the country will have to suffer
severely for long period from the
incalculable consequences.
The latest figures issued by the
Federal Bureau of Labor Statistics
cover the month of October, ,sand in
dicate that there was then a ten
dency toward Improvement in labor
market conditions. In ten of the
thirteen industries making returns
the number of workers increased
over the preceding month, while
two of the three trades reporting
decreases may be classified as part
ly non-cssential industries. The
figures suggest that labor was being
released from non-essential produc.
tlon and Indicate therefore that the
campaign to induce curtailment of
> private consumption is meeting
with some measure of success
The comparison with employment 2
i. year before was still bad, however
IN most cases, more than half the
industries reporting smaller work
ing forces. The percentage of
change in the number of employees
in October, 1917, compared witt
the preceding month and the cor
responding month year before
follows: