New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-02
PARIS BOURSE STRONG;
GREAT MONEY PLETHORA
Many Millions of Francs Await
Conclusion of Peace Before
Seeking Investment.
DULNESS IN MEANWHILE
Big and Disquieting Movement
to Fence All French Capital
Within the National
Frontiers.
[By Cable TO The Tribune.l

fBy Gable 10 The Tribune.l
Paris. Jan. 1.-The new financial year
opens with a lack of speculative initia-
tive, business in all departments being
strictly limited TO necessary transact
lions. Bankers and brokers are con-
tinuing TO deter their customers from
making investments or entering into
engagements abroad.
There are three salient features that
dominate the French financial outlook.
First OF all, of course. everything is
depeudent upon the conclusion Of peace
without further military operations
Peace once assured would result In
tremendous boom or revival of activity
that would begin with the floating on
the Paris market Of numerous foreign
government loans. and also stock
ISSUES in French and foreign industrial
undertakings, aggregating an enormous
u
The second factor of the situation 10
the present enormous rchux of French
capital usual at every year-end set
Element. French banks and credit cor
porations withdraw French capital
from abroad 10 meet the calls OF the
new year. and some of these payments
must be made i'm gold. This causes
a rise i'm the rates OF exchange in
those countries which are debtors to
France. and this movement Increases
the rates Of exchange in favor OF the
French unit, the franc. Now TINS re-
nux of capital comes on top Of the
already existing money accumulatlons
and the enormous private hoardings OF
the thrifty small capitalists, peasants
and men i'm the street.
Consequently, there has seldom and
probably never before been such
colossal holding in suspense OF French
CAPITAL Indeed, four Of the leading
credit establishments in Paris are hold
ing i'm hand. completely idle, no less
than one billion dollars in ready money
Thus from the strictly financial point
of view the situation Is a particularly
strong one Paris holds the purse
strings ~ Europe. and this vast accu-
mutation Of money acts as a magnet
for all countries that need money. such
as Austria. the Balkan States and cs-
- tfssa.l .saff toll
for carrying out her proposed system
Of economic and strategic railroads.
The third feature OF the situation is
the great movement TO fence French
capital within the national frontiers by
means Of legislation. There arc two
distinct currents i'm this move. and
both OF them are regarded by sound
fnanciers as dangerous 20 the real
prosperity of the nation.
In the first category are those who,
under the gusc OF protecting French
investors from INSCRIPTIONS financiers
and promoters are orthodox Chauvin-
lists and hard and fast protection
lists. who try TO protect everything and
who even strive 10 interfere with a
mans spending his own pocket money
as he pleases.
The second category IL composed Of
Socialist Colcc,ivists, who wish 10
create state monopoly for railroads,
telegraphs, telephones. municipal cor
porations, banks and everything else,
and who are really amateur financlers.
dallying with financial legislation very
much in the manner Of certain monkeys
who play with buzzsaws.
These amateurs are waging war upon
French credit establishments, which
they blame for encouraging the listing
OF American and other foreign securi-
ties on the Paris Bourse. This second
category believes that the panacea for
the national Ills IS To fence all French
capital within sort Of Chinese wall.
ON the whole the financial and esq
pecially the monetary outlook in France
is very bright, but If a war involving
one or more Of the great powers should
break out all available French funds
would be instantly recalled from
abroad and European financial centres
would bo upset. European countries.
unable then To obtain money I'm France,
would apply to the United States.