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

buy and sell them as We tell you. They
try to make their clients win. say. 10
or 10 per cent year and regularly sue
coed. Obviously. they are bound to deal
in quoted securities for this purpose.
How expensive it is to list American
securities in France l will show you. The
essential fiscal requirement-which Will
not be changed-is that a money euaran-
tee for the payment of fiscal imposts on
all the securities which may be sold in
France be deposited with the Caisee des
equivalent is the guarantee of some &C
ceptable French company or individual
which must be paid for.
For million-dollar loan the great
American railroad company already men
toned deposited So O0G.O0 security, be-
cause it's bonds guaranteed "a per cent
free from fiscal impost. The annual pay
ment of that impost by the American
company brings its interest expense up
to AZ per cent Nor does this count the
commission Of the brokers or the loss Of
issuing the bonds at sos to investors and
500 to common brokers.
When American company proposes
to let Frenchmen buy, say the third of
an issue. the French government inter-
venes to make sure that half the issue
be not slipped in. under color of that third
whose imposts alone are paid by a hold
ing company"
How much French gold has thus gone
permanently to America in the past year ?
The sums are SO vast that an extra
parliamentary commission is studying a
system of certificates which would repre-
sent in France stocks or bonds issued in
America.
1t would make sales easier. but also
strike a blow at the underground pri-
vate sales at present SO remarkable
Meanwhile French investors fiuctuate be-
tween two extremes of impression from
the sayings of two famous experts:
LAS far as depends on me" said Georges
Pallian, when he was named it's governor
the gold of the Bank of France shall
not be used to help Wall street specula
ton
On the other hand. Paul Leroy Beau
lieu. the economist, recently excited the
French by saying:
considering their vast field for legiti
mate development, the railroads of the
United States would be justified in Dor
rowing all the gold actually existing In
Europe!'
Pierpont Morgan recently got refused
in Paris when lesser Americans found
all the gold they wanted. Mr.. Morgan
whose father loaned to the French-had
already borrowed. Once he got 5000 00i
from the Credit Lyonnais on his note ni
hand, paid it. and asked for sl2.nN,mn
They refused. I'VE have every confidence
in Mt. Morgan, they said. but oul
stockholders do not understand great
loans to individuals without collateral
Another time Mr. Morgan got S4.0O00Gt
from the French Rothschilds. Enthused-
perhaps to let them in on the ground
foor-our wizard let them see a corner
of his plans
I have 1T straight. Two aged fathers
and three European-finance sons gathered
together in a corner, like frightened peas
ants hearing a whist story. Their cheeks
banched. They dug their nails into their
palms. And Mr.. Morgan. not to offer toe
strong meat to babes, desisted.
How avoid Wall street and invest In the
real America?
One investment the French would enjoy
Immensely would he real estate: but the
company would have to be organized in
France and put couple of Frenchmen
as travelling advisers on its list of buy
ers. The coal group Of North France
eight years ago. sent good man to
Seattle.
ut was a rich bet one of them tells
me. "Our mar was buncoed into buying
land that fronted on the ocean. washed
by every tide. Stung, you say? Yes