New-York tribune., 1918-01-12
Russian Bonds in.
Severe Decline on
Reputation Talk
Country's War Debts Now
Aggregate Over Eleven
Billion Dollars

Sensational declines in the bonds Of
the Russian government outstanding in
this country took place yesterday on re-
ports that the Bolshevik leaders may
repudiate all debts heretofore incurred
by Russia.
The s50OOO,0O Russian 61S per cent
bonds, the semi-annual interest on
which was paid Thursday by the Ma
tional City Bank, dropped to 4s and
closed at so, compared with the pre-
vious days last quotation Of 81. This
issue was offered to investors in this
country around par, and sold last month
as low as as. Yesterdays drop took
place on offerings amounting to about
$4,000.
Of the 5l2 per cent bonds only about
s25,000,O00 were disposed of in this
country by a syndicate headed by the
National City Bank. The dealings in
this issue on the curb amounted to only
$4,000. The low sale was 43, against
Thursdays last transaction at SO, and a
low record price of SO which was made
last month.
Bankers estimate that there were also
sold here approximately 200000,00O ru-
bles OF Russian internal S "a per cent
bonds: On private dealings yesterday
they broke from s9l to $71 per 1000
rubles, new low record price, and then
rallied to 70. When speculation in these
securities was active in this market
during the carly days Of the war they
sold as high as $50.
Bankers Views Differ
One banker who was active in the
notation OF the Russian external loans
expressed the opinion that reputation
ny tpe Bolsheviki would not wipe out
all The equity in the issues sold in the
United States, and that eventually anv
action taken by the party now in power
would IN turn be repudiated when the
RUSSIAN government again becomes sta
bilized
Another banker, we'll informed on
Russian affairs, said that reputation
is sure to come rs a result of the pres
ent chaotic state of affairs in that coun-
try. 1t will take years, he declared. be-
lore stable government will be es-
tablished.
The total war loans made to Russia
from August l, 1914 to August !, 1917,
aaggregete Sl1,630, 900 oO0 of which
Sooo'oO0,OOO was from the United
Hla1eS. The interest on the entire
war borrowings requires SS25, 900, 900.
against S212,200,000 paid in 1913, the
year before the war. Russa's annual
income is estimated at $1,000, 100000
Russia. with a total wealth of s6O.-
o00 600, 900. has a population of u.s.
Voo'00o people. making the per capita
wealth equivalent to S343.
RuB1e Holds Around 13 Cents
The exchange value in this market
OF the ruble, the Russian unit of cur
rency, has lately been around 13 cents.
compared with normal vaA>, of 51.2
cents. After slow decline in the first
Two years of the war the market value
tell sharply following the revolution
OF last March, finally touching 11ls
cents in September 1917. Since then
there has been slight Improvement.
although at 13 cents the ruble shows
an extraordinary depreciation from
par. The enormous degree of imitation
mat has taken place in Russia since
,he war began, owing largely to the
hoge issues of paper currency, is re-
sponslble to great extent for the fall
IN the value of the ruble. The latest
statement of the Bank Of Russia showed
notes in circulation of approyimatalv
$4,000, 100000. '''' anna 'e'S