The Daily News. FRIDAY, FEBRUARY 22, 1918. BOLSHEVIK REPUDIATION OF LOANS.

Taranaki Daily News, 22 February 1918, Page 4

The Daily News. FRIDAY, FEBRUARY 22, 1918. BOLSHEVIK REPUDIATION OF LOANS.

xue decree ot tlie Uolsheviks repudiating all State loans as from December 13 is onei of those acts of supreme folly that fit in with the general dementia that ha- overtaken the present holders of power .it Petrograd. It may possibly have been considered that the revolution would not be complete without removing every trace of the Imperial regime, which naturally included financial obligations. Nothing could be easier than by a stroke of the pen to cancel all Russia's national debts as a prelude to seizing private wealth. To the ordinary impecunious national unit there would be considerable satisfaction at negotiating such an alluring path leading from bankruptcy to financial strength—at other people's expense—but for a nation to deliberately write off its debts without consulting its creditors shows what depths of dishonor may be reached under the revolutionary flag. Russia is indebted to the British Government alone to the extent of over two hundred and fifty million? sterling and to British private investors to an even greater extent, while her debt to France comes next in importance, and that to America is in tlie region of fifty million sterling. Finance of the description favored by the Bolsheviks becomes indicative of the desperate nature of Russia's misfortunes in having bandits as rulers, though it is quite in keeping with the anarchy and bloodshed that is decimating and demoralising the people. It is evident that Russia will have to .puss through the furnace of affliction before taking on sanity and having a stable Government that will Work for the rehabilitation of the country and the prosperity of the people, instead of deluging the land with blood. Certainly the powers that be are doing their best to make that furnace as hot as possible, and are laying up nothing but trouble for many years to come. Neither the Allies nor the neutrals intend to recognise the monstrous repudiation decree, and thev have lost no time in presenting a Note setting forth their decision, at the same time warning the Bolsheviks tliafc countries interested will, at n later date, insist on satisfaction for all losses sustained under the repudiation decrees. Admittedly the Bolshevik Government is in sore straits for money, but tin- adoption of such a suicidal poli'-y as repudiating State delds, which vyere contracted for the lrirpo-e of freeing Russia I'roiii t!:e-.ei!'.iliiii:iil menace ci her despotic military i.cbhboi':-., j,- "aiciilate.! not only to i'c.-!:vy the credit of the o-.mi:-/. hui. 'n piio up Hald'Hies (bat,. '■ i l '. I ■■'■<.' '." i>' u.vi at nn <:>..a:it (lite *«.! , ■ ' I' I •• I. '.I 1 •-. .'.-•■ i.. ».i...:.„.. i„se il f a i::,je

ramble ill wnich the euuntry is bound to be tlie loser- At present the Bolsheviks may expunge the financial liabilities of tin; nation, but it is not they who keep the records. They may delude themselves that, if Germany wins, the. repudiation will be effective, though in that case tliey would have to bear a f ar heavier burden in the shape of indemnities,'and Russia's liabilities to the Allies and other nations would still have to be met. The Russian extremists rushed headlong into a seething cauldron of trouble of their own making, and the country will have to suffer by the calamity. Had they made a worthy effort to attain freedom by putting forth all the energies of the nation to defeat the comnion*c:ioiuy the Allies would have seen Russia through her troubles as soon as the war was over, and within a few years tlie country would have be'en on the high road to a prosperous and peaceful future. Instead, the outlook is as bad as it can he, and though the nations may have a certain amount of sympathy for Russia as a whole, they have been forced to regard the present rulers as anarchists and despoilers. Tlie blow delivered by the Bolsheviks on Britain was of twofold force. It deprived the Allies of Russia's help in the war and added to their financial burdens. Fortunately Britain acted promptly in guar anteering, up to a certain point, Russian bonds held by private investors, so that in the event of the repudiation being maintained the. loss will fall on the State. This was a characteristic master-stroke of policy that should impress the Central Powers with the immense financial strength of Britain. Moreover, the British Government by assuming this financial responsibility will be in a position to enforce payment when the proper tune arrives, and will be quite justified in taking extreme measures to that end. One ol the. outstanding features of the war has been the marvellous financial achievements of the Motherland, starting with the initial catastrophe when, at the outbreak of hostilities, ninety million pounds' worth of British bills on Germany fell due with no possible chance of obtaining .the money from Germany. Now, after raising thousands of millions for war purposes, the British financiers calmly face the, Russian repudiation, strong in their faith of Britain's ability to recover the debt in duo time. The Bolsheviks have -been warned that satisfaction will be insisted upon. The day of reckoning will arrive as surely as the dawn follows on the darkness of night. By then the Bolsheviks and other evil forces that are plunging Russia into the vortex of disaster will have run their course, leaving behind a trail of horrors that will stain the history of the country for many years to come.