1914 appeared to be far more
auspicious to the German than any subsequent date.

Handicapped by these foreign parasites who were systematically
deadening the force of its arm, the Russian nation stood its ground
and Germany drew the sword.

Improvisation--the worst possible form of energy in a war crisis--was
now the only resource left to the Tsar's Ministers. And the financial
problems had first of all to be faced. In this, as in other spheres,
the country was bound by and to Germany, so that the task may fairly
be characterized as one of the most arduous that was ever tackled by
the Finance Minister of any country--even if we include the
resourceful Calonne. And M. Bark, who had recently come into office,
was new not only to the work, but also to the politics of finance in
general. Happily, his predecessor, who, whatever his critics may
advance to the contrary, was one of the most careful stewards the
Empire has ever possessed, had accumulated in the Imperial Bank a gold
reserve of over 1,603,000,000 roubles, besides a deposit abroad of
140,720,000 roubles. Incidentally it may be noted that no other bank
in the world has ever disposed of such a vast gold reserve.

Although one of the richest countries in Europe, Russia's wealth is
still under the earth, and therefore merely potential. Her burden of
debt was heavy. For at the outbreak of the war the disturbing effects
of the Manchurian campaign and its domestic sequel, which had cost the
country 3,016,000,000 roubles, had not yet been wholly shaken off.
And, unlike her enemy, Russia had no special war fund to draw upon. As
the national industries were unable to furnish the necessary supplies
to the army, large orders had to be placed abroad and paid for in
gold. At the same moment Russia's export trade practically ceased, and
together with it the one means of appreciably easing the strain. The
issue of paper money in various forms was increased, loans were
raised, private capital was withdrawn from the country, various less
abundant sources of public revenue vanished, and the favourable
balance of trade dropped from 442,000,000 roubles to 85,500,000.
Germany, on the other hand, possessed her war fund, in addition to
which she had levied a property tax of a milliard marks a year before
the outbreak of hostilities; she further drew in enormous sums in gold
from circulation, and generally mobilized her finances systematically.

But Russia was compelled to improvise, t