The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-08
FRENCH LOAN is
IN BIG DEMAND
81. lOO. 100000 Offered for
. S161. 100000 Issue
in Paris.
SIBSC RIBBED 10 TIMES
"Crisis of Confidence" Con-
tinues i'm Markets.
However.
TARQUHAR Is 4 FACTOR
Position Of Brazil Railroad
Company Casts Cloud
Over Situation.
rARQrHAR Is A FACTOR
,p,,,oi cable Despatch 10 Tur srx.

Sp,cioi cable Dcspdtct 10 TUE SuN
PANS. July THE new loan Of $685.
900 600 francs tl6i ,oo0, OOO) was covered
hIrty-six times. according TO an early
estimate made By the Ministry of Finance,
Later estimates. however. say that the
losn was covered forty or nifty times
over. which means that at least $1,000
moo 900 francs $4,000, 900, 0Oo) was Of
fercd to the Government
The loan was offered at 81. II bears
interest at -. per cent. instead OF 3
per cent. as now paid on the outstanding
Government bonds, and is TO run for
twenty-five years.
The loan was issued principally to cover
tn. deficit IN the Government finances,
caused nv the increased expenditures for
the army on account OF the three years
service Law and also for the maintenance
Of the army in Morocco
The new loan achieved its object not
merely by attracting forty or fifty times
the amount required. but by attracting it
from quarters whence IL was desired
where there was an attempt to hoard
gold
An uconceivablc number Of twenty
franc pieces Yves received to-day" re-
marked an official OF the Treasury Depart
meut special measures had been taken
20 bring about this result. subscribers for
200 Francs 500 and 400 francs $3.50
81 the bonds only being guaranteed that
they would receive a full allotment"
Limit subscriptions TO $4,000.
only abou, half a dozen State financial
oficcs were opened for the receipt of sub
scriptions. The large banks. such as the
Credit Lyonnais. were not utilized for
' direct subscriptions. They received mail
subscriptions from clients. but accepted
none under 10000 francs ,s2.Ooo). These
subscribers probably will receive about .
per cent. of their demands.
Tho new loan was dealt in on the
Boursc this morning at 92.35. Later the
quotation fell to ?i.S7 In sympathy with
the markets Of Vienna and Berlin, which
were depressed.
The realization OF the loan after the
long delay since 1t was first mooted. al
though II will have "A greatly beneficial
effect ON the Paris markets will not end
the crisis of confidence from which tn,
markets are suffering one OF the hcuvi-
cot clouds is the position Of the Brazil
Railway Company, in which the Banque
De Paris Ct dos Pays Bias and the Societe
Generate are go deeply interested.
The lattcr's interest in this grandi lose
,theme was q great factor in laying the
bank open to the recent attacks on its
credit by the bear crowd which controls
tie Paris markets. These attacks included
letters which were sent to the dcpositors
in the Socetc Generate. warning them
10 withdraw their accounts. 1t eliminated
IN all investigation by the governor OF
the Bank OF France, who reported that
The conpanys assets were to be realized
on easily and that it was in good con-
dtion. Tho action OF the Societe Gen
erae IN asking the Ministry of Finance
10 allow the officials of the Bank OF
France to examine its books and certify
10 lie soundness was unprecedented.
Organized by Farauh.r.
The Brazil Railway Company owes its
existence to Percval Farquhar. who was
once prominent in New York in an at.
tempt to launch transcontinental rail
road with the Rock Island as basis
Ihis ambitious scheme of the Brazil
halfway Company involves railroads
ports, land. cattle and lumber compa
mes and hotels, and for its success tim,
and long period OF cheap money ar,
absolutely Indispensable.
Then the Balkan troubles came on tot
OF Brallrs own financial difficulties, anc
France limited the lending Of its none,
70 liz ally Russia, for the building o
20. 1. ~
'' forces more quickly. so as to NEE
me move OF France in establishing tn
'nree year military service. with tn
exception Of lending this money to he
any and also agreeing TO finance tn
"l'hdly Balkan countries France woul'
allow no money to leave the country,
TINS led to the embarrassment OF tn
'T'iA Railway Company. This conceri
- holding company for some twent.
"o t"ra'ons, the bonds of which ar
Su"mtr Il 10y the Brazil Railway Com
PAM. Il has ISSUED securities accord
hE :" iue writer of the financial review
'' I""Hc' LHirDS, of cghty-live diff
Ie''nt varieties, involving a capital q
M" Um l,250, O00,0OO francs ,S2jO,
''''o", Most t.. thesc securities hav
"'" placed M France. 'rhr rest hav
'.e0 Heated in England and Switzerland
4h' Government Of Brazil has for som
| uh' been negotiating "A loan in Iondor
.",'s and Berlin, the first slice of whic
| VIII h" At least 5O0 O0O. 600 francs $500
'V''''l or this amount the Braz
h"INaN Company claims that 5000, 90
'hucS $4,000, 000J TO 100. 900. 900 franc
e-'opo'oOo) IL due that corporatio
nom the brazilian Government for wor
o"adN done, much of which was In con
",u'n with port on the Rio Grande.
~" company now hopes that IN
trench banks interested in 1t will succce
F" placing the brazilian Government LOAF