mendous foreign commerce, the breakdown
of which cannot be compensated by any territorial conquest. A war of
Germany against England, France, and Russia will stop her commerce
entirely. It will be impossible for her to export her goods and to
import foodstuffs. Her manufactures and her commerce will come to a
deadlock, and unemployment will threaten her cities. All the victories
of her army will be of no avail. If her enemies draw out the war for a
year or two Germany will be exhausted. We are not talking of the
possibility of a German defeat, although Germany is not invincible.

The gold reserve of Russia, France, and England amount to about
350,000,000 rubles, ($155,000,000,) while the gold reserve of Germany,
Austria, and Italy is only about 160,000,000 rubles.

The gold currency of the first three countries amounts to about
7,000,000,000 rubles, ($3,500,000,000,) while the gold currency of the
other three is only $1,500,000,000.

The food supply of Russia is inexhaustible. Her industries are working
chiefly for the home market. They can only win by the campaign. The
curtailing of food and raw material exports may benefit her home
industries by cheapening production.

In case of a shortage of war supplies Russia will be able to get them
from neutral countries--for example, from the United States. But where
will Germany get them? What shall she do when her stock of saltpetre
runs out? For the time being saltpetre is obtained by all countries from
Chile only.

France is an agricultural country which has large supplies of food. Her
manufactures are poorly developed, and they are working for a foreign
market which will not be closed. Her resources are so large that she
will be able to stand the campaign with comparative ease.

Owing to her insular position, England will lose but very little through
this war, provided she is able to maintain the supremacy of her navy
over the German fleet. The British merchant marine and her manufactures
will gain quite considerably.

The public credit of France and Great Britain is inexhaustible, and it
will not be restricted to Russia, while she is an ally of these
countries.

Proposed Internal Loans of Russia

[Russkia Vedomosti, No. 222, Sept. 27, (Oct. 3,) 1914, P. 3.]

Prof. Migoulin has submitted to the Russian Minister of Finance a scheme
for new internal loans to meet the extraordinary expenditures caused by
the present war.

It is proposed to enlist the sup