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 safeguard
 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 Japanese
 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 between
 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. Russia
 needed further and much larger credits, The negotiations
which were started between the Russian and the British Governments
 toward the end of 1914 and continued throughout 1915 disclosed
 the following situation.
Russia pointed out that her financial situation was very difficult
 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, England
 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. England,
 therefore, made her willingness to open credits to Russia condi-|

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