The industrial Situation in Russia.

Manawatu Times, Volume XXVI, Issue 7276, 28 August 1901, Page 4

The industrial Situation in Russia.

A lurid light is thrown upon the industrial situation in .Russia by the report recently presented to Parliament by Mr Cooke, the British Cornrueucial Agent at St. Petersburg. For the most part the communication deals with the metallurgical and mineral industries, but it is impossible to review these without entering more or les9 fully into the geueral industrial condition now obtaining in the Empire. "We were, of course, aware that Russia was at the present time passing through a period of commercial depression ; but until we read this repo\t we had no idea that the trade disruption in question was so deep or likely to bo so lasting. Mr Cooke quarrels with the word 'crisis,' which,' in its application to the material situation in Russia, has become' almost a standing headline in the Muscovite newspapers. A. crisis is. obviously a passiDg phenomenon, but in Russia, we are told, " there is more of the nature of a permanency threatening the existing condition of industrial affairs generally, the causes below the surface lying far too deep for merely passing remedies." This would be a grave pronouncement in regard to any country; but it is especially so in respect to Russia, where the whole stability of politics and finance rests upon the assumption that the new industrial policy inaugurated, or rather developed, by M. de Witte, will be made to pay and pay speedily. The sudden rise of the industrial spirit in Russia has led to the establishment of a huge amount of new manufactories, and the corresponding conversion of vast sums of floating into fixed capital, and unless this capital in its new form continues to be remunerative the most serious results are likely to follow. Unfortunately, the metallurgical industries of the country, in which so much money has been sunk, are at present in a condition of undeniable stagnation, and the only question to be considered' is whether this is a mere passing phase, such as at times afflicts every branch of manufacturing activity, or whether it is likely to be permanent. Mr Uooke seems to take the latter view. In particular, the situation of the iron industry is serious and threatening to an extreme degree. There are two iron districts in Russia which offer a rather remarkable contrast to each otbev, both as to their character and the geneva- methods pursued. More than hair tue total yield is produced by the southern region, which is quite modera in its origin and methods, and offers a curious contrast to the Ural district, with its primitive style of working and much more sober record. Starting with all tbe advantages of Governmental favor and fed by orders from tbe authorities, it grew with startling and unnatural rapidity, producing far in excess of the normal requirements. It has thus suffered all the effects of the inevitable reaction. All sorts and conditions of enterprises were founded in the implied belief that tbe support of the Government would be eternal, and now that orders are not coming in so rapidly, and there is what is technically termed a glut of production, the outlook is serious. Railway construction cannot go on for ever, and, though the demand absorbed the supply for a number of year 3, the time when the new ironworks would have to rely upon the open markets for the disposal of their product was bound to come. Now and again the Government still step in with a judicious aud timely order, but this sort of paternal aid can.not f continue, and when it ceases finally, and the ironworks are leffa to a severely normal demand, the depression is bound to deepen.