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- | ©