New-York tribune., 1914-11-16
Only Operations for Cash
To Be Permitted on
the Official Market.
BANK OF FRANCE
TO AID OF BROKERS
Arrangement Will Free Large
Sums of Money Tied Up
Since War Began.
fpy CAhle 10 The Tribune. ]

Paris, Nov. 15.-The second step tow
ard liquidation and the reopening OF
the Paris Bourse has just been ar
ranged between the Bank Of France
and the official "chambre syndicate" of
the Paris stock brokers.
The first step, already csbled, con-
sisted of the meetings between the FL
nance Minister, bankers and members
Of the stock market. The third step
will be the ratification of the agree
ment at the coming general meeting OF
the Paris official stock brokers.
The Bank of France came TO the as
sistance of the financial market be-
cause Of the question of setting free
large sums of money tied up since the
end of July in carry-over operations.
The sum in sufferance on the official
stock market is more than S1OO, 900.
The Bank OF France will advance 40
per cent of the value of stocks carried
over at the prices quoted at the end
of June and the middle of July settle
ments. Securities are valued accord
ing TO prices at the monthly or BIZ
monthly liquidation. The guarantee
for the advance of funds required by
the Bank of France will be deposit Of
the securities at the bank and an
agreement by both parties TO the carry
over transaction and the signature OF
members of the corporation of the Of
fetal stock brokers.
These loans will be allowed by the
bank for a period of three months at
5 per cent, payable by the speculator
or investor whose securities were car
ried over. Delay of reimbursement
will be renewable by successive periods
of three months. The banker or brok-
er who carried over the stock will be
entitled to receive per cent on the
balance of the 60 per cent OF money
advanced by him TO carry over the
securities until final settlement. This
interest will be due likewise from those
who contracted for continuation OF
their bargains.
At the same time the official cham
bre syndicate" of stock brokers took
measures to satisfy creditors whose
funds have been tied up in continu-
alton operations.
The probable time for the resumption
Of trading on the Paris Stock Exchange
is before the end of the present month.
The operations are TO be limited 10 cash
on the official market. No probability
exists of opening the financial official
market for account in the near fut-
ure. and no steps have been taken so
far for reopeninG the outside market.
Most securities exchanged in the free
market are also negotiated in London
and New York. Thus the question of
rostponed liquidation in the unofficial
market depends on the arrangements to
/ be made on the London Stock Exchange
| and in Wall Street decision.
Prorogued liquidations in London are
expected TO begin from the 18th inst.
The Bank of France is not authorized
TO lend money negotiated in the Paris
outside market, therefore members OF
the official chamber of stock brokers are
deprived Of the monetary assistance OF
/ the Bank of France TO effect liquidation
Of this department of the Bourse where
great sums of money are engaged. This
difficult situation has induced the syn
/ dicate chamber of outside brokers to
approach the committee OF the London
/ stock Exchange to obtain postponement
/ of liquidation until it can be carried
out simultaneously on both sides Of the
| Channel.
/ IL was resolved at an important meet
| ing of municipal councillors TO ask the
Minister of Finance to -ollow the Brit
I ish example and authorize the Bank of
/ France to consent to cash advances up
TO so per cent on the value Of securities
/ based on Bourse price lists of the July
/ nostnoned settlement