part of the British Government, they shall consist of “non-tangible” 
credits. The term of this arrangement expires at the latest one 
year after the conclusion of peace, and the obligations of equal value 
exchanged by the two parties shall be redeemed within the same 
period. ” 
Thanks to this arrangement, the diminution of the Russian 
gold stock which resulted from the export of £40,000,000 in gold 
passed unnoticed by the general public. The balance sheet of the 
State Bank showed a decrease in the amount of metal entered as 
“gold in coin, bullion, and mine warrants,” but this decrease was 
offset by the increase in the item ‘gold held abroad.” After the 
war, the gold exported was to be restored to the Russian State 
Bank. 
What has just been said accounts for the changes that appeared 
in the statements of the State Bank, the meaning of which was 
hidden from the public, inasmuch as the agreement between the 
British Treasury and the Russian Ministry of Finance was not 
published. There exists no longer any objection to making these 
facts public. 
When’ the credits opened under the terms of the above agree- 
ment between the Russian and the British Governments were ex- 
hausted, in 1916, and when new credits had to be obtained, Russia 
had to enter a new agreement with the British Government, by which 
she placed at England’s disposal an additional amount of £20,- 
000,000 in gold, as a loan subject to repayment. We reproduce 
here the corresponding paragraph of this arrangement: 
“Upon demand of the British Government, the Russian Gov- 
ernment undertakes to deliver gold, at such places and such times 
as may be fixed by the British Government, to a tctal amount of 
£20,000,000, on condition that no such demand shall be made by the 
British Government except in the event that the gold stock of the 
Bank of England, including the cover for notes in circulation, shall 
decline to or below £85,000,000. In any case no such demand shall 
be made upon the Russian Government prior to January 1st, 1917.” 
The gold shipments provided by those arrangements were ef- 
fected in the following manner, 
Of the £40,000,000 which were to be remitted under the terms 
of the first agreement, £10,000,000 was shipped in December 1915, 
£10,000,000, in June 1916, and £20,000,000 in November 1916. 
The gold was shipped partly to Japan and partly to Canada. In 
accordance with an arrangement between the British Admiralty and 
the Japanese Ministry of the Navy, the gold was carried by Japa- 
nese warships, under Japanese escort. In a similar manner