{IN BORSDORF NEAR LEIPZIG 3*] 

London, 28 December 1885 

Dear Liebknecht, 

Borkheim died in Hastings on Wednesday, 16 December, and was 
buried on the following Monday. An attack of pneumonia on the pre- 
vious Sunday swiftly brought about his end. He had had tuberculosis 
for 12 years and during the final ten years, after the whole of his left 
side had become paralysed, he never left his bed save for a few brief 
intervals each day. He bore his sufferings with exceptional resilience 
and indomitable cheerfulness, always kept up with the political and 
social movement, and was a subscriber to the Sozialdemokrat until the 
very end. Up till a year ago he received a pension, first from two, then 
from one, of the houses for whom he had previously worked as sales- 
man and/or buyer. Last year we collected amongst his friends here 
a subscription big enough to ensure that he had what he needed. You 
might perhaps put a short obituary in the Sozialdemokrat °'°; I prefer 
not to thrust myself to the fore on an occasion like this. There is no 
objection to your doing it and, besides, you are better acquainted 
with his activities in Baden. 

As regards Russia’s finances, **° herewith a further word on the 
latest critical turn the affair has taken: 

A fortnight ago the Russian government obtained through Bleich- 
réder and the Russian Bank a further loan, but only of 20 million 
roubles, which was, according to reports, heavily over-subscribed in 
Berlin. Depending on whether this is taken to mean roubles in specie 
or in paper, and that’s something you can ascertain over there, it rep- 
resents roughly either 60 million marks or else a mere 40 million. The 
loan was intended to secure the advances made by the Russian Bank 
to the government. As usual, the same old hollow excuse. How hollow 
became evident a few days later! About a week ago it was reported in 
the English papers that the Russian government had ordered the 
Russian Bank to sell the Russian aristocracy’s (doubtless the Credit 
Bank’s) mortgage bonds for 100 million roubles. The German press, 

enlarging on this, stated that in return the Bank was to advance the 
government 75 million of the proceeds. Thus the government is pay- 
ing the Bank at best 20 million roubles in gold and is borrowing in re- 
turn 75 million roubles extra. But since the realisation of 100 million 
mortgage notes is a highly tedious operation, especially in Russia, this 
means, in other words, that 75 millions in new paper money are to be 
created and loaned to the government. Before the holidays the rouble 
was standing at 23’/,d. (instead of 39d.) over here and is bound to go 
even lower— as it will also do internally; in their present financial 
predicament the device they have to use to give some support to their 
ruined currency (the 20 millions in gold, when the Bank gets it) serves 
only to bedevil their paper currency even further. 1789 is on its 
way — even without the Nihilists 35° — expedited by the government 
itself. 

One may further conclude from the above that Bismarck is hold- 
ing his Russians on a short rein and will not authorise the release 
of German funds other than on a hand-to-mouth basis lest the 
Russians should get too uppish and do the dirty on him in the 
Balkans. #45 

I can only suggest the main points for you to work on, but you will 
have little difficulty in finding out further details in Berlin. 

This Christmas we—the Avelings, the Kautskys, Pumps and 
her husband,* Schorlemmer, Lenchen and I—sat up drinking 
to our hearts’ content and making merry until four in the morn- 
ing. 

A Happy New Year to you. 

Your 
F.E. 

Schorlemmer sends his best wishes.