Russian government was thus forced to utilize the gold reserve. In 
accordance with an agreement between the Russian and the British 
governments, a portion of the Russian gold stock, amounting to 
eight million pounds sterling, was shipped from Russia to England 
in October 1914. Extraordinary precautions were taken to safe- 
guard the greatest secrecy regarding this shipment. Upon reaching 
Archangel, the cruiser Drake and the military transport Mantois 
dropped anchor in the open sea, thirty miles off the coast, and 
the gold was delivered on board at night, by lighters. In spite of 
these precautions, however, the Germans learned of the shipment 
and when the Drake and the Mantois were on their way back to 
England they encountered mines which German submarines had 
laid along their route. The gold was delivered at Liverpool, but 
the dangers involved in such an enterprise and the damages suffered 
by some of the warships that escorted the shipment caused the 
government, to give up that method of shipment. All subsequent 
shipments were carried by rail to Vladivostok and thence, by Japa- 
nese cruisers to Vancouver. 
TEE ANGLO-RUSSIAN FINANCIAL AGREEMENTS 
Before we take up the question of Russian gold shipments to 
Canada via Siberia, we shall briefly analyze the agreements be- 
tween the Russian and the British Governments relative to deliveries 
of gold from Russia. 
The first shipment of 8,000,000 pounds sterling of gold 
amounted simply to a sale of Russian gold to Great Britain. The 
credit which was opened to Russia as a result of that transaction 
was immediately applied to the payment of war orders placed by 
Russia in England and in the United States. This comparatively 
small amount could not afford a solution of the difficulties that 
arose for Russia from the fact that the war became protracted. Rus- 
sia needed further and much larger credits, The negotiations 
which were started between the Russian and the British Govern- 
ments toward the end of 1914 and continued throughout 1915 dis- 
closed the following situation. 
Russia pointed out that her financial situation was very diffi- 
cult due to the fact that she had available no foreign credits and 
that she could not export gold, which had to be kept within the 
country to serve as cover for note issues. On the other hand, Eng- 
land showed the difficulties the Bank of England had to contend 
with, as it was the only bank of issue in any belligerent country 
which had not suspended the exchange of notes against gold. Eng- 
land, therefore, made her willingness to open credits to Russia condi- 
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