New-York tribune., 1913-12-29
PARIS MARKETS
AWAIT CAILLAUX
No Activity Possible Until
Ministerial Plans Are
Known to World,
IBy Cable to The Tribune J


was dull and inactive all Christmas
week under the double and equally de-
pressing influences Of uncertainty as To
the fiscal and financial projects of NJ.
Cailaux. Minister of Finance. and the
annual slack time of the winter holiday
season.
Two features only were salient in
the weekend trading. namely the rise
OF coppers here following the firmer
conditions prevailing In the New York
markets and the moderate rally I'm Rus
stan industrials.
Banking groups are awaiting the
coming issue of Russian and Servian
loans to make new start, while
French rentes recovered fraction.
Regarding the Mnistry's financial
plans, the prevailing opinion is that NJ.
Caillaux will propose to provide for i'm
mediate needs by treasury bond issue
Of S1UO.OoO 600. and that he will ap-
proach the big banking institutions
with the request TO place at the dis
posal OF the government "A part of the
enormous sums lying on deposit in
their strong rOOms-about 20 per cent
OF the total-for the purchase of these
bonds. 1t is further said that NJ Call
laux has not given up the loan projected
by his ministerial predecessors and ac-
cepted In principle by the Chamber of
Deputies. but has merely held the mat
ter over till later period, perhaps
February next II conditions are favor
able. He will probably combine this
loan with tax on capital.
In the mean time il is hoped that he
VIII meet the acquiescence of the banks
by permitting them To issue their for
eisn loans, which were compelled to
await the issue Of the French loan.
Regarding the impending loans 10
powers in the Near East. Il is believed
In financial quarters here that the
banks could secure the solvency OF
these Impoverished states by money
advances amounting In bulk 10 less
than 200.O0OoOO after deducting Ger
tain sums due. and thus secure the
interests of French creditors by con-
solidating the financial status Of these
countries.
II IS admitted that Turkey and the
Balkan States are at the end of their
tether financially after the war. These
states require money TO pay the debts
resulting from their two campaigns
and 20 meet the amounts due Ia
French and other creditors. Turkey
wants about fl3O.o0O.o .oGo, Greece and
Bulgaria somewhat less. and Servia
perhaps S7Ooo0,OoO.
The question Of future taxes on rev.
enue is now the dominant one In the
world of French finance Tn. status
Of other state funds I'm this conncc-
tion afford useful illustration. Italian
rentes. for example. are of two kinds
2i5 per cent and ; per cent. and while
the first is tax free the second Is bur
dened with the Italian 20 per cent
pro rata tax The 3ia per cent rents
ls capitalized AT S.55 per cent net and
the 3 per cent rente at as per cent
gross the difference I'm market value
between the two being one Of 20 pei
cent
The same variation is noted between
spanish eXteriorS, payable al their net
value, and the "rente interieure,
which lis subject to duty. Russian
funds afford equally instructive figures
Thus. the Eoursk- Kharkoff and Azof 4
per cent bonds, 1894. are quoted at 81
and are subject 10 ) per cent tax on
The revenue. while another slice Of the
same. issued in 1889. free Of taxation
stands al more than ~
French Nord railroad bonds at PEI
cent subject TO French fiscal taxes, are
~ per cent below the tax free Nord-
Beige per cent rails. yet these two
last description Of bonds enjoys the
same guarantees. These examples suf-
fee 10 show the extent TO which the
taxation of securities affects their mar
ket values.
The present government came into
power owing To the refusal Of the
Chamber To approve the Barthou
project Of making the next issue OF
rentes immune from taxation. Until
the Chamber pronounces upon the al
tcrnative scheme which VI. Caillau1
will propose an uncertain stock mar
kct with a minimum of transactions IL
inevitable.