New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-06-29
new FRENCH LOAN
OF $l6l,OOO,OOO
To Be Issued at 81 on
July 7--Interest ~
Per Cent.
BOURSE DEPRESSED
IN SPITE OF THIS
Next Months Issue of Rentes To
Be Reimbursed at Par
Within IS Years.

Paris, June 28.-!The Bourse had its
troubles last week about the rentes
taxation scheme, the market remain
ing depressed and very narrow. The
Clafin failure was without direct et-
feet here, but undoubtedly caused
further dependency all along the line,
especially in coppers. This note Of de-
preston is quite unusual on the verge
of big national loan, which under
ordinary conditions gives FLIP to the
market.
Details regarding the new French
loan were published yesterday in the
shape of the official white paper sur
mounted with the usual "Republique
FRANCHISE. Liberte, Egalite, Frater-
mite" stuck on the walls of Paris, and
informing the public that the fotation
of a national loan of S161, 100000 was
under way. These rentes are redeem
able in twenty-five years at the latest
and bear interest at 31s per cent.
They will be subjected to a tax of 4
per cent, and will be issued on July z
at the price of 81 per cent. The cap
italization rate, therefore, stands at
$40 per cent, whereas that of the old
3 per cent rentes at the current rates
does not bring in more than about 1857
per cent, but the new rentes are at
tractive for other reasons.
The fact that the new bonds are re-
daemable in twenty-five years at the
latest renders them unusually de-
sirable, especially as, the issue price
being 81, there is a redemption pre-
MUM of per cent, seeing that the
obligation will be acquitted at par at
the expiration of that time. Another
feature of the new loan is that indus
trial shares are mulcted by double
form of TAXATION. e., an income tax
of A per cent and also a transmission
duty or transfer tax calculated on the
average price of the security during
the previous year. This tax has been
raised from one-ffth of l per cent to
one-fourth Of / per cent, and from
July 1 next it will be nearly one-third
of / per cent. This tax, which applies
TO all industrial securities, has been
increased twice, whereas the per cent
tax has not been changed and is estab-
lished on something fixed-that is, on
the revenue-but the other tax is varl-
able. because it depends on the market
rate of the security.
The revenue Of the new rentes Will
be almost invariable, which is an ad-
vantage. The profitable price of the
issue of the new fund (91 per cent? has
at once caused a certain movement In
the business world which has already
brought about premium Of Il points.
On the other hand, the old perpetual
2 per cent rente has lost ground, the
difference on the week being almost d
full point. this being due to large
number of arbitrage sales effected IN
order to subscribe to the new loan'
There is great connection these days
among French capitalists, who now
find that sending their funds abroad is
entirely Intellectual as a means oil es-
Gaming taxation on transferable secu-
rites. Experienced financiers Ike
Raphael Georges Levy and others say
that the simple-minded capitalists VINO
believe that their money deposits be-
yond the frontiers will be kept secret
nv bankers and interme diaries VIII DC
disagreeably surprised.
The French fiscal authorities when
the law taxing transferable securities
was passed made arrangements TO Sc
cure full details concerning French IN
vestments and deposits IN 1orelgh
countries. This arrangement, maze Dy
tho French Else, affects also American
citizens living or domiciled for time
~ France. These and any who may
hone to escape the new french law ny
depositing their money In Dana ou.-
side of France will have to pay the TAX
on capital and the death uu'ieS ''e
same as French citizens.