The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1910-06-28
Finally, the. Gtcount rate remained
three per cent lower in France than
In England or Germany.


In this way the action of the bank
made itself fgit not only on the
French market. but also on the In
ternational. and particularly the
English market. Making discounts
on foreign paper must be considered
today q very normal means Of estab-
fishing useful relations between the
different markets and Of applying the
law Of supply and demand Of capital
In an intelligent and profitable man
ner for the country which furnishes
its capital. Not making foreign dis
counts is deficiency which the Bank
of England adds to its lack of elias
ticity Of issue The Reichsbank has
foreign portfolio" which has in
creased In importance from year to
year. The Beuk Of France has the
right to discount foreign paper, and
has used It very ably. thanks to the
enlightened direction Of its governor.
M. Georges P4iIain.
Commenting upon this series Of
events. N. Lfesse declares that the al
lance Of all the banks of issue of
Europe, which was suggested after
the panic Of 1867 by an eminent Ital-
Ian minister, does not require to be
contaminated by any official action.
There is no need of official interven-
ton. Of contracts with binding claus
es. to create j solidarity between
these establishments. This solidarity
is established when necessary, either
directly, II the banks of issue have
the privilege Of discounting foreign
commercial paper, or indirectly. by
the credit companies or the inter
mediary banks The intervention of
one or another of the banks Of issue
In favor Of foreign market is there
fore free. and % much the more use
ful on that account, because this ac-
tion is performed in response to a
solidarity dictated by the positive in
terest that the hank has in interven-
ing, since It derives profit from SO
doing.
Summing upe what has been ac-
complished by: the big credit COM
panies in developing the industries
and financial resources Of France,
supported as they have been by the
central bank, a. Liesse says:
"They gradually extend their activ-
ity In France ~ means of numerous
branch Offices or agencies. The Bank
Of France follows the same move
ment. either o1,lits own accord or by
reason Of conditions imposed. by the
government. Tho present organization
Of credit begins to take shape; the
role Of the credit companies grows in
importance; thef adapt themselves to
the temper Of the country and of their
depositors; they engage preferably In
dtGccunting, In thort-date operations: {:
they make every effort to render
available by means Of suitable invest
ments the capital intrusted to them,
which they receive at sight In much
greater amounts than on time. Final
ly, they take root on foreign soil and
help to invest French capital (which
would be idle lin France) in foreign
securities. France. always economic
al, invests abroal, In this way, saw
ings to- the amount,of some thirty-odd
billions. This situation makes France
creditor of many nations and gives
1t almost constantly a favorable ex-
change: rate. 1t makes 1t possible
for the Bank of France. thanks to the
prudent monetary policy inaugurated
by Leon Say, to accumulate a formid-
able gold reserve = The Bank of
France thus becomes center Of sup
ply, not only for the credit Of France.
but for an important neighboring
market-thet Of London"