The Daily News. MONDAY, APRIL 3, 1905. WAR AND FINANCE.

Taranaki Daily News, Volume XLVII, Issue 788, 3 April 1905, Page 2

The Daily News. MONDAY, APRIL 3, 1905. WAR AND FINANCE.

When the Japanese first embarked on warlike operations against Russia, they truly astouniled tha world, for the simple reason that practically nothing was known of their rc-> sources except the fact that no efforts had been spared to bring the army and navy into (exemplary trim. What is now termed the "Japanese spirit" was then unheard of, and nations almost smiled at the temerity of an insignificant I'ower seriously setting forth to drive out of Korea and Manchuria the greatest military Power of tho West, whose armed forces were almost unlimited, and whose financial potentialities were deemed to be equal to bearing any strain, however prolonged. Even when the Mikado's navy and army met with an almost uninterrupted series of successes on sea and land, there seemed to be only one possible termination of .t/Ho struggle—that Russian rcsourucs must in the' long run prevail,- These prognostications have been completely falsified by events. In tho same confident spirit with which Japan struck the first blow has she gone steadily and irresistibly forward until the goal aimed at is nearing attainment. Notwithstanding the enormous losses of men, and the gigantic burden of providing the Sinews of war, Japan stands to-day if anything in a better position than her mighty opponent. Cheered by the victories obtained, though frequently by enormous sacrifice of life, and confident of ultimate success, the Japanese are willingly facing the cost,'both in men and money, in Such a way as to provoke genuine admiration from other Powers. This is evidenced to a remarkable extenf by the way in which the new Japanese 4£ per cent, loan of £30,000,000' hasl been taken up, or rather, rushed, while tho Russian attempt to negotiate either in Fiance or Russia a 5 per cent, loan of twenty millions was an utter failure. Contrasting tho natural resources and trade of the two countries, this result is astounding, especially in face of the fact that notwithstanding Japan's in'ternal loans being oversubscribed, and her first foreign loans being floated with case, there is not only no trace of any strain on her people, bat on the contrary, trade is brisker and taxes are paid with unusual alacrity. Russia, on the other hand, is desperately attempting to assure the financial world that she has an enormous reserve of bullion in tier treasury. If this be true, whence comes tho need of borrowing twenty millions at such a high rate as five ptfv cent ? Moreover, a very significant feature in the business is that French investors, who have hitherto so warmly supported Russia financially, have, apparently wakened to the fact that there is 'danger ahead for their investments, and So wo see them making a remarkable change of front, and coming forward with heavy subscriptions to the Japanese loan to be used in further humiliating the ally of France. This step does not necessarily show that -hero is any change in French" opinion towards Russia, but it unmistakably points to the confidence which French financiers feel in the result of the present struggle. Meanivhilo Russia seems to be in a state □f dangerous indesision. She has ilreacly sent' 800,000 troops to Man:huria, and though there is an urg;nfc domand for a further 200,000 lien, only a fourth of that number :an even bo promised, and it is irobable that a considerable proportion" of these will never reach their [iestinatiom while ol' those that do join the persistently resreaiting army i considerable number will bo raw ecruits. Her in'ternal troubles are [rowing more serious every day, and he ominous silence as to the mov> nents of the Japanese army lead us 1 o expect, at any moment, the news jf a crushing defeat of the remnant >f the British forces. The Balliq leat does not count as a serious facor in the struggle, but taking all ■ hings into consideration, now that a pan lias shown Russia that her redit is good to any extent, and hat she is trusted by the people of Lmerica, France, and Great Hritain, . Vw,

will force itself (on Russia, unless the Czar and his advisors are determined to follow a course that will plaj into the hands of the revolutionaries, and reduce the country to ch'aos From the fact that Russia has stated what terms she will not agree to seems to point to a' temletlqy ioEW'de peace, No wo is at till de-

ceived by the reported insistence on no indemnity, and no cession of let'- ( ritory. Japan has not been spending her life's blood and.treasure' just for amusement, or as an interesting experiment ; and 110 one doubts for a moment but that Russia yill have to trench on the contents of her I Treasury lo pay an rffdcmnjxy, and that Korea and Manchuria will be ! freed from her influenco, !