Business Notes BAD DEBTS

Search the attic! Check behind the wallpaper! Lucky scavengers may discover a small fortune in Russian bonds issued during World War I by the government of Czar Nicholas II. For 70 years, the IOUs have scarcely been worth the ornate paper they were printed on. Reason: a year after shooting the imperial family, the Soviet revolutionary government repudiated $192 million in the hands of U.S. bondholders. But last week the State Department said U.S. and Soviet officials have started negotiating a repayment of the Czarist loans. Including interest, the settlement could reach $900 million.

The Soviets have a vested interest in making good on the antique IOUs. In recent times, U.S. banks have loaned money to the Soviets only for short periods. But the Soviets hope that a repayment of the old debt may encourage some U.S. banks to extend longer-term loans, as European and Japanese financial institutions have done over the past five years to the tune of $11 billion.

The repayment negotiations are being closely watched by officials in New Hampshire, which owns $10,000 in Russian bonds dating back to the 1820s. With interest they could be worth $300,000 today.