[Digested from Russkia Vedomosti, No. 266, Nov. 18, (Dec. 1,) 1914, P.
6.]
The manufacturers of war supplies are making large profits through the
war. All they need is Government advances to buy their raw material. The
Government permits them to borrow from the State bank upon Government
orders for war supplies. The only difficulty lies in the extent of the
credit. The Government would not permit borrowing more than one-third of
the amount of its orders, while the manufacturers are asking for
two-fifths.
The manufacturers who are using imported raw material and are working
for the private consumer are suffering heavily from the war. The lack of
coal, of hides, of wool and of cotton is threatening Russian industry
with a crisis. There is a great want of hydroscopic (absorbent) cotton,
since the only factory for this product was in Poland (City of Zgerzc)
and has been destroyed. Lack of dyestuffs and other chemicals is
hampering many other industries. The importation of tea and coffee has
been curtailed considerably.
Russian cotton mills used to get 45 per cent. of their raw material from
the United States, since only 55 per cent. of their demand can be
supplied by Central Asia.
Furthermore, this Asiatic cotton can be used for the coarser grades of
manufacturing only.
The war has cut off the American supply altogether.
Moreover, the manufacturers need cash to buy the cotton available. But
they have none. They have already applied for some hundred million
rubles gold loan from the Treasury, but the Government has promised them
only about eight million from the new loan.
The wool manufacturers are faring no better than the cotton interests.
The only way to get raw wool seems to be to ship it from Australia via
Vladivostok. But the lack of foreign exchange prevents them from using
this source.
The tea trade of Russia will be paralyzed soon for the same reason.
The big manufacturers see only three possibilities of remedying this
situation. The first would be to export gold, the other to export
Russian commodities on a large scale, and the third--to get a gold loan
from Great Britain.
The first proposition is impossible, since the Government will not
permit any exportation of gold at this moment. The second proposition
won't work owing to the demoralized transportation. Thus the only escape
from a serious national crisis seems to lie in a large foreign gold
loan.
This idea is favored by such prominent manufacturers as S.I.
Tschetverikov, G.M. Mark, and A.E. Vladimirov of Moscow, the first
speaking for the wool interests, and other two for the tea wholesalers.
Mr. N.A. Vtovov voices the same sentiments on behalf of the Russian
cotton mill owners.