New-York tribune., 1913-07-28
FRENCH FISCAL SYSTEM
TO UNDERGO A CHANGE
Financial Markets Will Be
Heavily Hit, and PartiCu-
IarIy Foreign Securities.
TO BE TAXED FIVE PER CENT
Regularity in Shipments of
American Oil During Balkan
Troubles Sustains Quota
tions in That Department.
tBy Gable to The Tribune.l


tions in That Department.
TBy Gable to The Tribune.l
Paris, July 27.-The Bourse remains
cautious, but with a firm undertone.
Russian industrials were heavily hit
last week and Russian government
bonds were weak.
Mexican banks were slightly more
cheerful but the only real business was
in coppers. which remained active
throughout the week, stimulated by the
hardening OF American prices.
The French financial and industrial
worlds continue 10 be deeply interested
I'm the promised fiscal legislation. on
the one hand the budget commission
announced "A few days ago that the
stamp duty on foreign government
stocks would be raised from TO ) per
cent, and at the same time the Finance
Minister informed the Senatorial in
come tax commission that steps were
being taken officially 10 remove the
present taxes levied on land property.
lie positively assured the commission
that the taxes imposed on land would
be reduced or removed by the end Of
next year.
The stock market and financiers in
general. therefore, understand that real
estate i'm France is to be greatly re-
Iicved i'm future and that personal prop
crty will have 10 bear the weight OF the
new fiscal scheme. Thus foreign gov
ernment funds and French and foreign
Industrial shares will have to pay not
only for the relief of land property, but
also must find a large part Of the
budgctary deficit and the important
surplus needed for tho formidable
in preparation.
French Rentes Favored.
The only stocks which will really
gain 10y this legislation are the French
national funds. these being declared
immune from all or any further duties,
and will even be given certain ad-
vantagcs. Foreign national stocks
have had the duty gradually raised
from one-half Of 1 per cent to per
cent.
By throwing a new sop to agriculture
for inland political purposes the gov
crnmcnt is proceeding to suck dry the
",,ilcb COW" of general prosperity. or.
i'm other words. the financial markets
,,.h..I, r.,dor possibIe the exchange OF
.u pipds ~ values. including land and
other real property. But where taxes
are removed and fresh heavy expenses
incurred In other directions, new
sources nf revenue must be found To
tu mn the void. hence the putting on
n,. e.r,u" ON uorsonal property, and
rsrticuIarlv ON foreign securities.
pa.r.r viii be taxed. and by the in
.,itution OF the direct income tax on
rc,.o,,,o holders of securities will have
to nav. furthermore. on the money
derived thcrefrom. Foreign shares and
bonde must nav , instead OF per cent.
as hitherto. but Americans will be no
.,,orec oa than the rest.
Little vi 'ro" ooU''''"''
During these troubled times OF war IN
Europe American petroleum oil mas not
shown such marked fluctuations on 'he
Paris exchange as nave seFeraI
naphtha shares representing "'hS '''
the southeast of Europe ana the eau
casus. VII "''o"i' VI
municatlon with th' hld'h "ta "dS
been greatly interforcd WIN While
railway transit from the Rumanian oil
fields is less easy. because That state
is now at war. Therefore. the regu-
larity in the shipments of American OH
has been q favorable factor ln sustain
ing these shares on the Parls bourse'
at least relatively during lhe llielcss
trading Of the last year.
Efforts are being mace p' rI''l'"
and Rumanian companies ana SPe'u''-
tors 10 develop the production ol peIio'
in the rich oil fields OF that country
with tank trains ana tank poaIs Oh
the lower Danube ana, perhaps soon
tank boats from the BLACK Sed poI'a'