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Show COST OF WAR Million a Pay Spent by Russia. Thfs'.WIU Be Decreased Considerably Con-siderably Afterthe First of June. Facts - and Eiguros Presented Ipy Bussia Concerning- Details and Circumstances of Loan. PARIS, -May 6. An authoritative statement was given to the Associated Press' today from the - highest governmental source concerning the details and clrcumr stances of the :new Itueaian loan, as follows: "The situation has . been much changed since your Interview with M. MIeczIslas de Routkowsky, the Russian financial agent in London April p3. The conditions today on which the loan Js based are as follows: "The cost of the war for the first five months, up to June 1, Including $L'2,500,-C00 $L'2,500,-C00 for railroad equipment, is $126,000,000. "After June 1 the monthly cost of the war will be $3,500,000 for the navy and . $15,000,000 for the army at the front, mailing inc total war expense aooui $245,000,000 for the year closing January Jan-uary 1 next. "The first part of the war was more expensive than.the latter, owing to the cost of mobilisation and the general expenses Incident to setting the machinery ma-chinery of war In motion. "Against these extraordinary expenses ex-penses we may have .certain economics, namely, $30,000,000 on the ordinary budget, bud-get, $27,600,000 on the extraordinary budgetand ?J.500,000 on previous budgets, bud-gets, making tire total economies $G7,-000,000. $G7,-000,000. "When the war began the Russian Government had between. $150,000,000 and $200,000,000 to Its credit in the Bank of Russia and with foreign bankers. According to the monetarj law of 18'J7, which made gold the standard for Russia, Rus-sia, there was a stock of gold amounting amount-ing to $475,000,000 nnd a note issue of $350,000,000. Therefore Russia still could have placed In circulation $200,000,000 to $250,000,000 In notes without impairing In the slightest the gold law of lf07. However, by so doing the monetary situation sit-uation after the war might have been less natlsfactory than at present. "Accordingly, for the purpose of protecting pro-tecting the Internal monetary situation, the Russian Government has lent a favorable fa-vorable ear to the proposals made by French bankers and has opened negotiations nego-tiations at St. Petersburg for an Issue of treasury bonds, running five years, at 5 per cent These are going to be offered of-fered to customers of the big French financial houses at near par. By sc doing do-ing the Russian Government reserves the right after five years to make use of Its internal credit to convert or consolidate con-solidate these five-year bonds Into a funded debt bearing a lower rate of Interest." |
