Omaha daily bee., 1888-12-13
FRANCS INSTEAD OF MARKS.
Parisian Financiers Come to the
Cars Rescue
THE GREAT RUSSIAN LOAN.
IL Creates the Utmost Enthusiasm in
the French Republic and Is
Heavy Blow to Berlin
Bankers.
Supplying the sinews of War.

tCoplright 1888 on james tiorttOn Bcnnctt
PARIS, Dec. 12-TNcw York Herald Cable
Special to The BEE Since the national
subscription to cover the German indemnity
in 1871 there has not been such spontaneous
enthusiasm on the Paris bourse as there was
on Monday, when 1O0,0OO,OO0 francs ei the
new Russian 4-cent loan was offered, and
$50 600, 600 subscribed. Financially. the loan
is undoubtedly n success, but it is difficult to
overestimatc its political Importance. Russia
would developc her military power. France
responds France gave money in 1871 from
patriotism. She gives money again in 1885
for-what is itl Revenge. The most absolute
| monarchy in Europe asks money; the most
democratic republic IN Europe lends the
money. Truly les extremes Sc tcuchcnt. Nj.
F'loquet announced the results of the sub
scIptions to council of ministers yesterday.
With great satisfaction he alluded to it in pri-
vate conversation as the financial enfran-
| chisement of Russia from the Berlin banking
| monopoly.
| saw a diplomatic parsonage yesterday
familiar with the inside history of the loan.
He gave me these facts in brief
Last June representatives of the Comp
teir d'Escompte Credit Lyonnaise and
other financial institutions Of France with
)
nigradsky, the Russian minister of finance,
the advisabllity of converting the Russian
debt and floating a new Russian loan in
Paris. WyshnigradsIy reported this to the
car who viewed the project with favor. At
this time the roube was much deprecated, :,
and the moment was not considered favor
able. With the rise of the rOuble the scheme
became practicable and was put in to eXccu-
tion.
The advantages to Russia are many. 1t
frees her from the financial tutelage of Ber-
| lin. Hitherto all Russian loans have been
| foated and owned largely in Germany. This
fact enabled Prince Bismarck to put direct
pressure on the internal affairs of the Rus
sian empire by lowering at his will the price
| of roubles. The iron chancellor could thus
practically prevent Russia from making
war. He could fan social dis
content in st. Petersburg, Moscow ana
Odessa. He could inhict losses of a million
upon the cars private fortune and the
Russian treasury. Lately German bankers
have unloaded their Russian bonds on the
market in the vain attempt to again dcpre-
ciate the rouble. These bonds have at once
been bought up in France, so that the great
bulk of the loan is now owned in France.
1 talked with several bankers about the
loan ana asked the senior member of the firm
of Jordan & Co. why England, Germany
and other countries did not take the loan.
He replied: ''On general principles since
their war England has had as little pos
sible to do with Russia. There
is nothing specially attractive to
the English investors in per
cent bond at Sc They find uses for
money made to their liking in the direction
of the Argentine Republic or elsewhere. AS
for the United States as long as railways
there pay good dividend and until the ma
tona debt is considerably decreased thus
retrcting the now excellent field for invest
ment there is no reason why American cap
ital should go abroad" Other brokers
spoke Cheerfuliy about the loan
and with pardonable pride at the
quickness with which IL was covered.
The class of Investors are not servants and
hand concieges but petits renters and pco-
pie of moderate means, who are accustomed
to lay aside every year portion of their in
comes in sound investments. Other nations
hesitate to negotiate "A loan IN France
on account of the enormous expenses
connected with the undertaking. A heavy
tax goes to the treasury syndicate. The
banking houses which managed the loan
bought the bonds of the Russian government
at about S3 and put them on the market Sc.
Deducting expenses, their profits are about
IL per cent.