New-York tribune., 1914-07-06
BOURSE PREPARING
FOR THE BIG LOAN
New Issue Of French Rentes Has
Already Been Covered
Fifteen Times Over.

Paris. July D. The Bourse last week
Vas firm but narrow and inactive.
Brokers and spectators arc striving
20 digest the first consequences Of the
introduction Of the new taxes on
transferable securities, which means
that confusion necessarily exists. and
this is added 20 by the laying Of ;
per cent duty OF all foreign government
bonds. these having hitherto been eX-
smptcd from taxation. The latter
measure alone will produce far-reaech-
ing consequences.
The issue Of the new French loan on
Tuesday is awaited with keen interest
and already large quantities Of the old
rentes are being sold in order to buy
the ncv bonds at 3i2 per cent, less
the income taT Of 4 per cent imposed
on the new coupon. The loan Is al
ready reported TO be covered fifteen
times over. The sales of the per cent
rentcs, however. have not materially
affected the price, which, So francs 80
ccntimes n week ago. closed yesterday
at S3 francs 10 centimes.
A certain nervousness has undoubt-
edly seized hold Of investors. and these
have withdrawn considerable funds,
causing 2 steady run on the banks.
Weaker banks are asking the momen-
tary assistance of greater banks pos
sessiug larger financial resources.
For months persistent efforts have
been made in the great banking world
10 consolidate ard rcorganize the
financial market with as much secrecy
as possible. During tho work OF
cleansing the banking Salvage corps
have discovered among those indebted
. 81 20 hoi tnt atatf IN bp
istcncc Of old speculative positions and
Of debit accounts the immediate set
tlcmcnt of which the intervcners insist
ed or. The same cleansing process has
been taking place in st. Petersburg and
in ali other markets oyerburdened with
engagements in Russian industrials.
This settling of accounts all around is
practically confined to professionals.
and represents only limited losses. The
volume Of transactions would be inf
ntely larger if the French speculative
public were deeply involved Many OF
tho securities that have suffered from
these forced sales are almost all Of
sound quality and bear high dividends,
therefore n slight turn in events in tho
right direction would produce a rally
The persistent attacks made on this
UItUNldl Wai NJ - Vll a. Ntl Niil tNtl
ter arc likely to cease because these
groups are too we'll advised to Try 70
ruin the Paris market at present. al.
though th,y may continue 20 under
mipc IL. An immediate and strong
movement on the Boursc, however. is
improbable. for too much mistrust of
speculation and Investment of all
kinds has been aroused in the country
ouict iv tn gtibs idc
Nothing would he more foolish than
a rush iust now TO sell good securities.
for such Easty operations would make
recent losses lrreparablc.
The reasons for The recent aggrava-
tiou e the already unsatisfactory
martct conditions can be easily traced
Thc hiC French banks have been inn
prudent for some time past i'm issuing
securities too readily. The banks
hoped that the French public would alb
sob all tNis paper and thus bring them
considerable profits. which would hll
their Golfers with good money.