The Daily News. WEDNESDAY, OCTOBER 5, 1904. WAR AND FINANCE.

Taranaki Daily News, Volume XLVI, Issue 232, 5 October 1904, Page 2

The Daily News. WEDNESDAY, OCTOBER 5, 1904. WAR AND FINANCE.

Discussing the ability of Russia to sustain a long war, tho Times writes :—"Russia's credit abroad is based entirely on .the existence of a large gold reserve, awl although every effort is being made to Keep it in the country, the time may come, and perhaps must come, when it wjll no longer \ye possible to do so. As long as the Imperial Dank continues to make its payments in gold foreign finance is satisfied. But it is generally believid that the amount of paper in circulation is far in excess of what it is officially stat«l to be, and, as no accounts are published, there is no means of checking official statements. It is, at any rate, well known that there have been tluve Issues of notes since the war began, two o,f them for large amounts. This is one of the uncertain quantities in the financial situation. The other is the feeling that the Russian Government may at any time reduce the value of their securities, and it is stated on good authority that preparations are toeing, made in France with „, view to this contingency. Then there- is l the (juestion of the local loons. Many Russian towns are badly tn need of money to carry out various improvements, and contracts were, under discussion with foreign firms for this purpose. Hut since tho w a r the Government lias forbidden the floating of local loans, So as not to spoil the market for Imperial loans. This, of course, has put a stop to work of all kinds, and many important orders have had to bo countermanded. In n few cases the Government authorised such towns to borrow privately, but without making any public issues. The municipalities in question offered to pay the firms with whom they wished' to place their contracts in bonds instead of cash. Not unnatu- ' roily, the firms rejected these proposals." Here are a few figures published in tho Petorshurger Zeitung (say, two months ago) concerning the reduction of output amd employmint in certain parts of Russia : "Government of Moscow.—Out of 1V26 establishments wSth 205,803 workmen, 13 establishments with 1295 workmen havo ceased to work ; 14 factories and (5024 workmen have reduced their output, throwing> 1578 workmen out of employment ; and 4 factories with 10,296 workmen are working reduced time. Government of Vladimir.—Out of 584 factories with 158,727 Workers, one factory with 150 men has been shut down ; six others have reduced their hands from 13,915 to 12,032, and knocked off one day's work per week. Government of Livland.—Out t ,f ,'JG.'! factories with 49,280 hands, live with 015 hands have closed (two in Consequence of fires), and ten others with 3225 hands have reduced their working hours from two hours to three days a week. The Agues for other governments have not yet been published. Hut apart from the very doubtful character of Russian official statistics, it is notorious that the situation is far worse In other parts of tho country. In the town of Lodz, for instance, tho mills are only working four days a week, and there are 40,000 men out of work, while at Warsaw the number is 30,000. The conditions of other districts will be examined in fuller detail subsequently. Looking at the situation in St. Petersburg as a whole, it may ■!» said that, save dn a few cases, there is no serious reduction of work, and no large number of unemployed workmen. But there is a general feeling of uneasiness throughout the business world, and everyone is fearing Uiivt things will be much worse than they are now in the near future, whatever the outcome of tho war. Russian credit, as well as Russian prestige, is gravely shaken, and it will take a good deal more than a few victories to restore confidence. Some people even go so far a s to say that the war must ultimately spell financial disaster of the gravest character, as, according to them, it is merely bringing to light a pre-existing state of affairs, which already foreshadowed ruinous embarrassments."