The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-01-19

| eign capital investment in RusiAae
much OF which viii be unable to EARN
returns II conditions remain permant-
ly bad. This is estimated By Leslie
Urquhart. a Russian financial autho-
rity. as $500, 10000. OF course the
default on these private and corpo-
| rate investments will not directly COM
! Germ the government
The war has been for Russia, an for
every other country. an unprecedent-
eddy expensive affair. At the end OF
the last fiscal year, June 30. 1917. the
war expenditure amounted to about
$4,000, zoe, and by the beginning
or 1913 will be around $25,000.eoa,-
600. After allowing 5000, 600, 600 oh
account of payments out of current
revenues. the empire would appear
still to have an outstanding debt as
of January !. 1918, of considerably
over $4,000, 900, 900.
This, however. Is the most conserva-
tive analysis; some of the authorities
insist that the imperial debt will run
nearer to sac, 1000. 900. 900 by that time.
A debt of 10000. 900. 900 would re-
quire for interest discharge alone
| about s1,700. 900. 900 annually. To
make matters worse. the Russian cur
rency is so deprecated that to get the
! gold to meet these charges will re-
quire several times as much in rxbles
as has had to be paid in gold.
The Russian ruble liz nominaiiy
worth SO cents. But the oceans of
paper rubles that have been printed
both before and since the revolution
bear almost no significant relation to
gold. \ Before the war the issue OF
notes was required by law to be Sc
cured by deposits of SO per cent gold.
But that law is no longer operative.
At the end of October this year the
governments report showed about So
100000 of paper money in circu-
lation, against gold holdings Of only
about $3.50. 900, 900. These gold hold
ings are presumed to be IN the vaults
OF the Russian treasury and state
banking institutions.
In addition there is a sort OF tradi-
ton that the old autocracy built up
huge gold reserve that was held in
English. French, American and Dutch
banks alleged to be rather more than
81 600, 100000. But there In a good
|, deal of vagueness about this tradition.
and among financial people general
doubt IL any such foreign reserve
ever existed. still more about whether
It exists today in view OF the Immense
expenses Russia has had to meet
abroad But IL there is any such re-
serve abroad, 1t is likely to become
a bone OF contention among the coun-
tries in which 1t is held and the Rus
sian government
Even lie the Lenine government doeA
not continue In power some radical
successor is likely to come along de-
ma nding that this foreign gold be
made available for early uses. and
such a demand would In all probable
ity be refused on the ground that thu
gold must be held TO insure stability
OF Russian national investments.
At present Russian paper currency
Ia worth. in terms of gold. about 81
per cent of its face value. This, how
ever, is reflection OF conditions be-
fore the country's affairs became col
hopeiessiy chaotic as they are now;
any considerable operations in ex-
change Quickly would make the price
stili more disadvantageous to Russia
On the wh9ie the Russian situation In
ominous and IL involves menace for
Russia's allies. The common estimate
OF French investments in Russia places
them around $4,000, oao, 900. while
, since the beginning OF the war Brit
| ism loans to Russia are calculated at
more than $4,000. 900, 900 The United
states also has made large advances
| OF credit.
All these things are accentuatfng
| the concern which the whole business
| an. financial world entertains for tho
progress OF events In Russia. The,
other side of the ledger presents an acl
| count that rs by no means so dis
| coura ging.