RUSSIAN FINANCE.

Gisborne Standard and Cook County Gazette, Volume I, Issue 68, 17 November 1887, Page 2

RUSSIAN FINANCE.

The refusal of the National German Bank to make further advances to Russia proves that the Germans are quite as clever in protecting their own interests as the Russians are cunning in their many-handed games. Since the war ot 1877-78 Russian stocks have been very little touched by English speculators, but during the last few years German financiers have supported the credit of Russia to an extent which has astonished many shrewd observers. The Berlin speculators have been successful, too, and while raising the price of Russian stock from about 80 to 95 —a risky operation—they have made a profitable thing of it. The operators successfully disposed of quantities of the bonds to the general public, and the interest was always punctually paid by the Russian Government.

The German financiers were able to control the market to suit their own purpose, and could “ bear” the market or otherwise just as it was convenient to their interests to do so. There is no doubt the financiers were prompted in what they did by information from well-informed politicians, and their actions were a fairly safe guage as to “ how the wind was blowing.” If there was any likelihood of a breakdown they would have had ample time to make good their withdrawal. They also helped to keep up Russia’s credit by making fresh issues of stock, and thus placing the Government in funds which were generally supposed to be necessary for the payment of interest on previous loans, but which nevertheless gave a solidity to the market. When a short time ago, the antiGerman spirit was inspired by Katkoff, Prince Bismarck very soon managed to bring the Russian Government to be more in accord with his own wishes by using his influence with the moneylenders. The Russian Government was fully aware of all this, and the Paris Bourse was sounded. But the Germans took every opportunity to prevent the success of a competitor, and succeeded in their opposition. The attempt to split the German money-lenders is also almost certain to be averted, excepting very high terms can be exacted. The financial position of Russia is desperate, though slightly improved this year on account of a better harvest than usual.