Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-03-05

ture is high-priced ard fimsy-like the
twentv-five-dollar Paris hat whose ma
terial cost 81. or the eight-thousand-dollar
telescope lens whose glass cost Start,
decorations, styles. Instruments of pre-
cision. chic. wines. liqueurs. perfumes and
the delights of tourists eyes and stom-
achs. IT gives the French balance to
the good of S2D,0OO.O0 in gold yearly.
Their industries not employing their
gold savings they loan them to neigh
boring governments on one condition
that the interest be paid in gold. From
this source they draw. each year. $780,
e0e.Cc1 more gold.
You ought to see them at it, / know
a couple whose parents gave each $1,000
in government bonds to start with. AS
they were per cents. bought at a pre-
mijim not counted in the dotation. they
lived two years. without debt. on the
S1,JCO revenue. less imposts. At twenty
seven the Young wife declined into an
expensive sanatorium. The parents of
neither would aid cent Get along as
You can, they said, You have your
revenues
In two years they had spent 5000 Of
their capital: but the expense of it had
cured the lady. They must earn money
at once lie must not waste his youth in
office hours You know automobiles,
she said, buy a secondhand one cheap
and sell it dear.
That is what French wives are like
He did It. five years ago. Today he is
one Of the chief clrbstoIle auto-brokers
of the Porte Maiiot. his office 'in his
hat" without expenses. making $500 an
nual differences. She has her furs. six
expensive hats and three fancy tailors
from the Rue Royale; and they take two
months auto vacation. Yet. though they
will certainly inherit $4,000. they live
on less than his earnings. and put aside"
more than their 50 600 income from gov
eminent bonds.
What? You thought 1 said 1.ooO? Long
ago the hole in capital was filled, and
the capital increased from revenue.
Saving for rainy day. understand
it in the poor, but the well-off youth of
France, pilins up investments from in
come when sure of brilliant inheritance,
seem to me monstroas!
They arrive at the theater early. to
save the expense Of reserved seats. They
eat Kitchen instead of fancy bread,
because it sells by legal weight They
have all provisions from Potin to enjoy
catalogued competitive prices and avoid
mer vacations they avoid hotels above
81. so full board and lodging.
Now, these young investors recently got
"stung' by a great American railroad
company french loan. 1lodleu dl Wiidl
was a good rate of interest. The face
value of the bonds was 500 Small in
vestors got them at SOS: common brok-
ers at s36. and the issuing banks at s92-
good conditions all round.
But shortly after pocketing its Paris
loan the company put out a loan in Lon
don al as good interest and with the bet
ter security of first mortgage! BY this
trick the French loan became unstable
on the market above S92. Spectators
could make no profit, and small investors,
If they need to sell, lost far more than
the interest they had received.
This sort of thing keeps alive certain
prejudices that ought not to exist. We
must not be smart" Capital requires
TO be treated with scrupulous conven-
tionality. There was nothing illegal in
the smart trick of that great American
company; yet 1T worked certain injury
to future American borrowers. And
when it comes itself. again, oh, will it
not be surprised,
We ought to get our share of this vast
French investment. The young American
whose first touch of 100000 l have