The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-01-19
RUSSIA A Menace
TO THE ENTENTE
Staggering Debt Held Largely by
France, Britain and United States.
Danger for Bankruptcy.

London, Jan. 1S.-How long will
Russia manage to maintain her finan-
cial relations with the outside world
Amid the chaos of institutions and
administration, when will there be
defaults on the immense holdings of
government debts and other obliga-
tons held in western Europe? What
is the huge government debt of Rus
STA worth, anyhow?
France is the greatest holder, but
Great Britain and the United States
now also are creditors of Russia for
immense sums. The cola pse of Rus
sian credit would be a ruinous thing
for Russia; the utter bankruptcy of
the nation would be even worse for
the countries to which Russia owes
her debt.
Already these questions are COM
handing attention. Ultimately Russia.
viii be reorganiZed and put on its
feet. There can be no doubt of that
The western nations may be COM
PEELED to take /. in charge much af-
ter the fashion that the United States
has assumed fiscal guardianship over
Santo Domingo and some of the Cen
trail American states, but there will
he such universal necessity for the
rehabilitation of the country that its
concern. and will get attention.
Gold Standard a Myth.
Meanwhile. however, there will be a
period, it is feared, during which the
country will be unable to meet
obligations. Imitation has gone SO far
that the gold standard Is a myth, The
nation has a great gold stock. but no.
body knows what will become of 1t
under Bolshevik regime. The
anarchist government recognizes one
good and useful institution among the
relics left over to it from the era of
order--the banks.
The ridiculous spectacle of the Len
mites undertaking to commander the
state bank and require that it pro-
vide financial backing for the new
order Of things, the comic opera con-
test that has been described in some
of the dispatches to determine wheth-
er the Lenine regime was Untitled TO
utilize the bank as d, fiscal engine:
the seizure of the Moscow branch of
the state bank by the new regime
these things suggest how grave is the
situation that Is developing.
Russian finances in recent years
have been rather better managed than
the world al large realizes. The cost
of the war with, Japan was stated at
rather under a DILLON dollars, but TINS
really represents the amount added
TO the national debt on account of that
war, part Of which was paid for out
Of increased current revenues. When
that war began the country had n
debt of about s3,50o.00o, of which
about 100000 represented bonds is
sued by the Peasants' land banks and
guaranteed by the government. They
were substantially similag to the de-
bentures issued by the United States
farm loan board, on which in any
ordinsfy conditions the governments
guarantee never would become an ac-
tual liability.
Many secondary Obligations.
At the beginning of the present
war the national debt was about s4,-
500, 900. 900. This. however, in turn,
did not include the national guarantee
Of liabilities for railroad companies
by the state. The present danger OF
compl economic breakdown In
wolves the serious possibility that the
railroads will not be able to take care
OF their Indebtedness nor the Peas
ants land banks, which would mean
shouldesing on a bankrupt govern
ment a considerable increase in Its
current obligations.
Finally. there is the question OF for