New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-07-27
French FinanCierS Take
Gloomy View of Collapse
in National Securities.
BIGGEST DROP SINCE
THE PRUSSIAN WAR
AcuteneSs of Situation Has With
drawn Attention from Re-
suits of New Issue.
rBy cable to The Tribune.

Paris. July &c With French per
cont rcntes down to ~. the collapse on
the Paris Boursc is more farreaching
than at any time since the Franco-Gcr-
man war Leading iinancicrs take
very gloomy view Of the general situa-
ton.
The net loss on French rentcs for the
week IS I francs L confines, an enor-
nous drop for six sessions.
The acuteness Of the situation has
withdrawn public attention to a large
degree from the Interior results of the
new rentc issue. There arc two points
in connection Herewith which deserve
emphasis its great financial success
from the point of view Of French credit
and the dissatisfaction of number OF
small would-be investors.
The success was the direct proof OF
the lnexhaustible funds in the hands
Of the French people and their eager
ress to invest their savings for ma
tional and patriotic purpose with sure
return for their money. On the other
hand, there have been many complaints
that multitudes of holders Of small saw
ings were prevented from subscribing,
though anxious 10 do so.
This s. Of course, an excellent sign
rs TO the riches latent in France. but
il is unfortunate that so many wiling
small subscribers were unable TO
reach the receiving offices. Many
Industrious workers had no time to
stand for hours in order TO subscribe
for small rentc certificate. and the
"irrcduciblc" part Of the entire sub
scription was so limited that II DID
not nearly meet the requirements of
the great mass Of investors.
A very large margin was thus lett
10 the operations of big subscribers.
The reduction in the amounts sub
scrihcd was proportional; therefore,
by subscribing heavily big capitalists
were sure 10 secure large part of
the new stock. II may prove difficult
10 secure the good will Of the great
capitalists for the issue Of another
and early second edition OF the loan
at the expense Of the public credit,
and il is a question whether the hold
ers Of small savings will be willing to
come forward again after having alb
sorbed the new rcntes slowly from the
great financial groups at higher
price. Yet if France becomes involved
in war some such course will be in
evitablc.
Doubtless French capitalists. small
owners OF savings. tradesmen. en-
ployes and even workmen have once
more proved their lasting confidence
in the solidijy Of the state. Even in
the most difficult periods Of French
history. when the economic life OF the
nation hung in suspense. the state
never appealed IN vain TO the boarded
savings OF the people. But 10 pre-
vious loan ever met with the success
Of this ono, and the best proof thereof
is 10 be found in comparing il with
the great state loans Of the past.
At the close Of the war with Ger
many, in 1871, the state asked for a
loan Of S400,00O,000 which loan was
covered two and half times. One
year later a further demand was made
on the country. and this additional
loan. of 0O00O,0 900. was subscribed
twelve times over. Two hundred mill
ion dollars was wanted in 1851. and
the people came forward with offers
equal to fourteen times the sum asked
for
During the period which has elapsed
since 1871 the call Of the French state
on the savings Of the people has to-
tailed the sum of 81 900 100000, and
the reply Of France has been the offer
Of loans to An aggregate of $4,000
100000. France may still claim 10
hold a great share Of the worlds
wealth.