New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-01-02
FINANCE, TRADE ABROAD.
Continued from first page.

have under consideration Russian proposals for
q new loan about which shall probably hear
q great deal IN the early months Of 1907.
AS an instance Of the extent of French invest
ments in United States securities 1t may be
mentioned that a few days ago three small
vans wended their way from the Care Saint
Lazare to bank near the boulevards laden
with American railway bonds and shares,
amounting in value to S500O0,000, which had
been brought to Havre by a transatlantic liner.
In the last few months there has been an ex-
ceptional gold stringency in the Continental
money markets. Nothing equal to It has been
known for many years II has been principally
due TO three cause.-the American demand upon
London, the conversion Of the Brazilian public
debt and the new financial conditions prevailing
in Egypt. The governor of the Banque de
France was appealed to to relieve the pressure
of the New York demand upon London, and
agreed to do so. shipping over about five million
dollars worth OF American eagles. with the re-
suit that the tone OF the money market was i'm
medately improved, but he clearly gave 1t TO
he understood that he would do nothing to
bolster up exaggerated speculation IN the United
States, and would refuse finance bills from
America. while giving all due accommodation
TO legitimate trade. Recognizing, moreover
that the Brazilian conversion formed part OF
national policy which 1t would be useless to OPP
pose, whatever might be its financial draw
again relieved the pressure upon London, with
the result that London actually received at that
period more gold than 1t dispatched to South
America. The BanQue de France has also
stepped into the breach IN connection with the
unparalleled gold demand from Egypt.
The exclamation of this Egyptian gold famine
is curious So great has been the prosperity Of
the cotton growing industry in Egypt of recent
years that the fellaheen, free from the former
exactions of their Turkish masters, have been
able to save money. and are now investing 1t in
land. Thanks TO the British occupation Of the
country, they know that their contracts will be
respected and that their purchases sure.
But the Oriental intelligence is wholly obtuse to
the subtle complications of checks and bank
notes. Nothing but gold Will do, and this is
one of the reasons for the great drain Of gold
from London to Egypt which has taken place in
recent months. to the serious embarrassment OF
the London market. The BanQue de France
has supplied considerable portion Of the Egyp-
tian demand.
That Paris is rapidly becoming the first bank
ing centre in the world is also shown by the fol-
lowing figures Or November 90 the gold re-
serve Of the Banque de France amounted to
2.15I.O00.0O0 francs. or S551 100000, as COM
pared with S320OOOO0 francs. or $166 100000,
in the Bank of England. Some idea of the in
ereasing prosperity of italy and of her excellent
financial situation may be gathered from the
fact that the reserve of the Bank Of Italy on
November 10 amounted to 714,000000 francs,
or S142 100000 So wealthy, indeed, is France
that she lends money freely to Berlin banks at
2 per cent higher than that allowed by the lat
ter in their deposit accounts. and this is being
made a subject Of complaint by English manu-
facturers. who contend that in view Of the
entente cordiale France should not furnish Ger
many with the funds for competing with British
trade. But the idea Of establishing an interna-
tional financial arrangement for the isolation OF
Germany does not to be practicable, more
especially in presence Of the extraordinary de-
velopment which German commerce and in
dustry have taken on in the year. and which IS
proportionately greater than that Of any other
European country.
On the whole, the general outlook is salts
factory. In spite Of the stringency Of money
industries a sounder financial footing
than has been the for many months past
and the Improvement III the situation is un-
doubtedly due in a large measure to the wise
proVisionary measures of the Banque de France
In conclusion it is important to note that A
general and popular movement Of investment
toward American gilt edge securities IS now
noticeable in France.
has become the money lending centre of the
world is found in the statistics Of the Paris
Bourse, according to which tho valus of foreign
securities purchased in France for investment
in the year 1906 is SS41, 900 900, being S24O-
100000 in excess OF the year 1905. Moreover
amount OF foreign securities purchased directly
through bankers or agents, independently of the
Paris Stock Exchange Owing to the demands
for gold from Egypt Brazil and Argentina in
addition to that caused by the higher wages
earned by French workmen, together with the
enormous requirements Of money during the
New Year holidays, il seems doubtful whether
the Bank of France will feel justified in con-
tinuing 10 aid the monetary stringency in Lon
don and Berlin by exporting gold It is noted
that TIE gold reserve of the Bank OF France has
diminished since April ] by $60,000000 and its
silver reserve by S200o0000 C. l. B.