New-York tribune., 1918-03-29
Treasury May
Ban Payment on
Russian Bonds
Use of Funds Advanced by
u. S. to Meet Interest I'm
der Consideration

The United States Treasury is con-
sidering the question of whether or
not it will permit Russian agents here
to pay interest on Russian obligations
held in this country out of the funds
previously advanced by the American
government, according to statements
made by bankers yesterday. 1t is csti-
mated that Americans have purchased
Russian external 6la per cent bonds
to an aggregate Of $50 900, in addi-
tion to approximately 100000
rubles of 51a per cent internal war
deposcd. The British government has
announced that it will not provide
funds after April to meet the coupons
on Russian government bonds held in
that country.
At the National City Bank, where
most Of the coupons on both the ex-
ternal and internal issues have been
paid heretofore, it was said that no
decision is expected from the Wash
ington authorities in the immediate
future, as no important amount of in
terest is due until June, when the half
yearly coupon on the 6}as is payable.
Up to the present there has been no
default on any Of the Russian bonds
sold in the United States. The last
payment was due on March |, when
the City Bank announced that funds
the registered internal 512 per cent
bonds. Payments have been going on
slowly ever since.
Extcrnals Drop Sharply
On the Curb market yesterday the
mcnt. On turnover of $4,000 the
price dropped from 10h to 3812 The
ruble bonds arc quoted from $81 to
$S7 per 1000 rublc bond.
The news from London yesterday
was not regarded by bankers here as
Of great Importance in view Of the
fact that the British government some
time ago offered to exchange British
securities paying 3la per cent for the
Russian obligations pledged to return
5 per cent or more. The amount of
Russian bonds held in England is not
known here, but an authority stated
sues in that country which had the
backing of the British government.
For that reason, it was said, the offer
to exchange them for British bonds
was made.
George f. Roberts, assistant to the
president Of the National City Bank,
referring to the British governments
exchange proposal to holders of Rus
sian bonds, said he believed that if
the plan were still in effect the
British attitude was due to purpose
to give the bond owners only one
choice. He said Great Britain hardly
could be expected to pay the higher
interest rate in view of its offer.
Mr.. Roberts's View
"We don't think that the Bolshcvik
or any other government in Russia
will repudiate or scale down its for
cign Indebtedness" said Mr.. Roberts
"but the Petrograd government is in
great difficulty for revenue at this
time. and especially for means with
which to settle its obligations abroad
Even if the Bolshevki remain in
power | do not think they will repudi-
ate. Everything is in confusion over
there. but have every confidence in
the Inherent honesty of the Russian
people and believe there is cause for
encouragement among American in
vestors owning Russian securities"
Since the overthrow of the imperial
government in Russia and the subsc-
quent announcement that the Bolshe-
wiki had decided to repudiate the coun-
try's foreign indebtedness there has
been much speculation in this country
as TO the source of the funds used to
pay the interest on the bonds sold in
the United States. 1t was learned
definitely yesterday that this money
was supplied from the advances made
by the Treasury Department to Russia