traders in 1905 bartered 50,000 roubles' worth of wool for Russian manufactures, but in 1910 only 8000 roubles' worth. It is estimated by the Siberian traders that the Mongols now exchange by barter only one-fifth of their raw material for Russian wares, the remaining four-fifths being bartered to the Chinese merchants or given in lieu of tribute to the khans, who in return sell this raw material for lump silver to the Russians. Professor Soboleff, writing on Russia's Mongolian trade, says: "Our trade with Mongolia is becoming passive in character. We are compelled to cover the value of our imports by ready money or cash, and only if we resell any part of this raw material beyond our frontiers does this money return to us. Thus we export silver to Mongolia which we buy in Hamburg, and pay for it by raw material imports to Germany. This Russian silver exported to the East goes partly to the Chinese traders, and partly to the Mongol khans, as tribute for their subjects, and much of it also finds its way into the hands of Chinese officials. The Lamas also hold silver in the monasteries, which they have squeezed out of the tribesmen."
The only comment necessary on this excellent summary of the present economic position is that, while it is true that silver may now find its way into China in payment of Mongolian raw material, it should be remembered that this metal balance, as is so often the case, may be made good in many ways. For instance it is known that China imports manufactured goods from countries in Western Europe, to which Russia sends annually large quantities of timber and grain from the large reserves of her natural resources. These combined transactions
