cow and saw the havoc of vodka. He then dismissed Kokovsoff, and appointed the present Minister of Finance, M. Bark.

"Mobilization precipitated the antivodka measure. The Grand Duke, remembering the disorganization due to drunkenness during the mobilization of 1904, ordered the prohibition of all alcoholic drinks except in clubs and firstclass restaurants. This order, enforced for one month, showed the Russian authorities the value of abstinence.

"In spite of the general depression caused by the war, the paralysis of business, the closing of factories, and the interruption of railroad traffic, the people felt no depression. Savings banks showed an increase in deposits over the preceding month, and over the corresponding month of the preceding year. At the same time there was a boom in the sale of meats, groceries, clothing, dry goods, and housefurnishings. The 30,000,000 rubles a day that had been paid for vodka were now being spent for the necessities of life.

selves in an undreamed-of paradise. There were no blows, no insults, and no rough treatment. There was bread on the table, milk for the babies, and a fire in the kitchen.

"I decided to seize this occasion for a press campaign, so far as this is a possible thing in Russia. I organized delegations to present petitions to the proper authorities for the prolonging of this new sobriety for the duration of the war. This step found favor with his Imperial Majesty, and an order was issued to that effect. Another similar campaign to remove the licenses from privileged restaurants and clubs was successful, and strong liquor is no longer available anywhere in Russia.

"The second month of abstinence made the manifold advantages so clear to everybody that when we called upon his Majesty to thank him for his orders, he promised that the vodka business of the Government would be given up forever. This promise was promulgated in a telegram to the Grand Duke Constantine.

"There remains only now to find elsewhere the revenue which up to the present time has been contributed by vodka. There has been introduced in the Duma a bill offering a solution of this question. The aim of this bill is not the creation of new taxes or an increase in the present taxes, but an effort to render the Government domains and possessions more productive."

A

LTOGETHER 8,550 of the largest industrial establishments, excepting those of Poland, have been investigated. These employ 1,602,000 workers. Of those investigated 502 factories employing 46,586 employes had to be closed down entirely, while 1,034 establishments with 435,000 wageearners have cut down their working force to 319,000. Thus about one-third of the total industrial wage-earning force has felt the effects of the war either through total discharge or through diminished output.

The lack of trained labor power and the failure to obtain funds have affected 222 establishments with 58,000 workers. Lack of funds has been very severely felt in the Baltic provinces, (there, especially, in the chemical industry,) affecting fourteen establishments with 15,701 workers. Altogether 132 establishments with 50,000 employes have cut down their operations, and of these 30 per cent. employing 15,000 workers belonged to the chemical industry. Also twenty

establishments of the metal working (fine machinery) industry with 11,000 employes had to curtail their volume of business. In other industries the lack of labor supply has not been felt. Evidently only the industries requiring highly qualified labor have suffered from this cause. The shortage of fuel forced 108 establishments with 49,000 workers to diminish their output, and eleven establishments with 3,000 workers had to close down altogether.

The lack of fuel was very severely felt

in the provinces of Petrograd and in the Baltic, owing to the stoppage of the importation of British coal. Of all establishments closed down for this reason, about 60 per cent. belong to the provinces of Petrograd, Livland, and Estland.

In other regions this want was felt less severely. The output of coal in the Donetz basin and of naphtha in the Baku region has increased, and the decreased demand for fuel owing to the diminished production has somewhat lowered the prices of naphtha. Thus in 1913 the average monthly price of light naphtha in Balakhany was 42 copecks per pood, (two-thirds of a cent per pound,) but in September, 1914, it was 36, and on Nov. 5 it fell to 25-26 copecks per pood, (13 cents per thirty-six pounds—a little over 1-3 cent per pound.)

The main difficulty in the fuel supply lies, however, in the inadequate transportation facilities.

The next obstacle in the way of normal development of industry is the lack of This cause transportation facilities. alone forced 223 factories with 128,000 workers to curtail their output, and fifty-six factories with 5,300 workers stopped production.

But the most disastrous effect upon the Russian industry has been produced by the diminished demand and by the lack of raw materials. For lack of market, 671 establishments with 219,000 workers reduced their output. The greatest sufferers have been the building trades and the industries connected there

with-structural iron, cement, (concrete,) brickmaking, &c.

The railroads have suffered greatly through the cancellation of registered orders and by the stoppage of further orders from Poland, also by the military mobilization.

During the month of August, 1914, the gross earnings of the Russian railroads, both State and private, were only half of their gross earnings for August the year before.

The unexpected prohibition of alcoholic beverages has almost ruined the liquor industry.

For lack of demand 83 textile factories with 95,000 employes have reduced

their output. The lack of raw material forced 103 cotton mills with 188,000 weavers to cut down their output. This makes 40 per cent. of the total cotton mills of Russia. Similar reductions have occurred in the silk, woolen, linen, and hemp industries.

The Ministry has withheld the data as to the exact nature of the raw materials wanting, but it may be surmised that raw cotton and dyestuffs are among the chief items.

Among the remedies suggested are better credit facilities and the resumption of interrupted intercourse with friendly and neutral powers for the securing of raw material.

R

EFERRING to the abundance of donations forthcoming from the industrial interests for the victims of war, the Council of the Conventions of the industrial interests declares its confidence in the ability of Russian industry to bear the burden of war cheerfully and whole-heartedly.

The Council finds the proposed measures of the Government for its financing of the campaign insufficient, and promises to come forward with its own project of a special single property and personal war tax.

Then the causes of the war are summed up and the importance of the war for the industrial interests is outlined. The chief cause of the war is assigned to the irreconcilable economic conflict between the German and Russian interests created by commercial treaties favorable to Germany.

Victorious Russia should dictate her own economic programme to the defeated enemy. Without such a result all sac

rifices made will be in vain, and will fall as a heavy and unbearable burden upon the shattered economic organization of the country.

The industrial interests desire a war to the finish, and they say:

"Let the Government know how to cultivate in the future among the people the conviction that the war will be brought to an end, then the task of finding the means for carrying on the campaign will be greatly facilitated; for no sacrifice is too great for us for the overthrow of the economic yoke of Germany and for the conquest of economic independence. Nothing but strong will and determination are needed."

HE moment for the declaration of war has been well chosen and carefully planned by Germany

and Austria. Russia had her hands full with the numerous labor strikes and poor crops in certain parts of the country.

England had her troubles with the Ulsterites, and the President of France was absent from his country when the Austrian ultimatum was handed to Servia.

Austria had already mobilized large numbers of her troops in Bosnia under the pretext of manoeuvres, Italy had a partial mobilization, and Germany was preparing herself for a grand army show.

The German strategists are looking for a brief campaign. But they are mistaken. Even with the capture of Petrograd the war will have barely begun, for Petrograd is only the frontier of Russia.

Our troops are numerous and well equipped. The vastness of our country, her poor roads, and her severe climate are her defenses. The French frontier is strongly fortified. A quick surrender is unthinkable, and there is no reason for surrender, for the war will continue to the bitter end.

But a long campaign threatens Germany. She is a country with highly developed industry and with a tremendous foreign commerce, the breakdown of which cannot be compensated for 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 amounts 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 manu

factures are poorly developed, and they are working for a foreign market which I 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.

P

ROF. 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 support of various groups of capitalists and of small property holders and to obtain from them about 2,500,000,000 rubles, ($1,500,000,000.)

Four different loans are contemplated. Persons desiring to invest their savings at a small but sure interest rate will be able to buy the certificates at a 5 per cent. loan. These certificates will have a face value of 100 rubles, and they will sell at $90. The interest rate will not be changed within the next fifteen or twenty years. Therefore, the actual interest rate will be 5.56 per cent. on the original investment.

A 6 per cent. loan will cater to those investors who like to place their loans at shorter terms. The certificates of this loan will be sold at premiums. Five-year certificates will be sold at ninety-six for a hundred rubles face value, four-year certificates at ninety-seven, three-year certificates at ninety-eight, two-year certificates at ninety-nine, and one-year certificates at par. This loan will be free from the interest (coupon) tax, but not from the income and inheritance taxes. In case of success one billion

worth of these certificates will be issued. For persons interested in the changes of values upon Stock Exchange different loans will be issued. In the first place, no interest-bearing ten-ruble certificates with a large number of winners will be issued. A considerable number of these certificates will be redeemed each year. It is proposed to have one winner of 200,000 rubles, one of 100,000, two of 50,000, one of 25,000, about fifty of 10,000 rubles each, some 3,950 "chances" of from 100 to 500 rubles each. The whole loan may amount to 100,000,000 rubles. It is to be redeemed within fifty years.

Should this loan prove a success it will be followed by another of equal amount.

Finally, Prof. Migoulin proposes to obtain about 200,000,000 rubles by selling 4 per cent. Government bonds in fiftyruble denominations. This loan, too, will be equipped with the winners at the annual draw for the redemption.

The first of the proposed loans will be realized soon. The Government has decided to obtain 500,000,000 rubles at 5 per cent. This new loan will increase the present debt of the Russian Government of 8,838,000,000 rubles ($4,500,000,000) to 9,338,000,000 rubles. Russia has to pay 370,000,000 rubles annually for the interest on her debts. About onehalf of her indebtedness is due to railroad building and to other more or less