New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-16
'B0URSE OF PARIS
! DULL And INACTIVE
y;ohtmare of the Budget
&c Crisis Responsible for
Present Stagnation.
pfsSIMISM PREVAILS
ON MEXICAN OUTLOOK
cb FinancierS ForeSee No
Retterment Whether Huerta
peqime Stands or Falls.

fRy cable to The Tribune
-, March 1.-THE Paris Bourse was
- and inactive last week. due largely
- .. nightmare Of the budget crisis.
- rente. we're virtually unchanged,
s.,a,s's rejection Of the CaillauX pro-
% tax state bond coupons being an
..,,ed b. the market. French bank
'.,,ss we're irregular
Tse continued absorption Of gold by the
- q, France is due TO three causes,
,orge gold reserves needed for the
.,.rt OF interest on loans issued, the
F.aouv various government and other
~. m the Paris market, the growing
'a., that Paris f. the loan market not
Wv .iy Of Europe. but Of the world. in times
',' .ooromic stress, and. third, the de-
-oinatlon here to maintain a huge gold
..a-ys in Wow Of possible international
COMPLICATIONS.
tao nrolongation Of internecine warfare
wsxico and all its disastrous conse-
.a,ocss IS. Of course, a terrible loss not
.,r 20 the country itself, but also to for
-. interests I'm that republic. Financiers
~, rredict that there will be no way out
:, ,.s dilemma for some time to come.
Loan Service Made in Gold,
ofan Mexican securities the state funds
.-o,ipg the group Of foreign loans are the
.,,, seeing that the service Of these for
,,r loans is made in gold. These funds
,,,ira more favorable situation than are
:, Internal rentes, the interest service OF
,scb is made in a deprecated currency,
q. the difference in the rates Of the two
.,,tss Is. Of course. not in favor Of the
,,,ds raised IN the interior. The financial
nation in Mexico from the French point
,ylsw will not be altered whether Huerta
,.nld re-establish order by driving out
II. reyolutionsts or whether the latter
,uN succeed in taking over the govern
-,-t. thanks TO Intervention by the United
safes Both parties are in great need OF
-rey 10 enable them 10 gain the upper
hN
!, order 10 be able 10 borrow money
,srad the established Mexican govern
,s,t must re-establish first its credit by
,nln taking I'm hand the regular service
rs foreign debt. for although the in
yral debt Is worthy Of interest and re
hires considerable treatment this latter
ind is. after all, second in Importance
% the foreign debt. The Mexican banks
which French savings form a consider
ALE part OF the invested capital, have
hem particularly hardly handled by the
monetary crisis, running parallel with
he political crisis HE big fan in Next
can bank shares is the consequence OF
these conditions.
Nevertheless, holders Of Mexican Bank
securities who are I'm a position TO keep
them for a time will probably see rise
IN price II they have the patience and
ability to wait. The Bank OF Mexico is
the most favorably placed on account Of
ifs powerful organization. and also the
Bank Of London and Mexico, on account
Of It's reputation.
Among real estate companies mo
Credit Foncier Mexican has lost heavily,
but with the first signs of Improvement
n Mexico probably will be eagerly de-
handed IN the Paris market on account
c. the low price TO which these shares
have fallen and their probable future rise.
The Mexican National Railways have
also been big losers through the crisis,
and as French money forms a consider
abe item in these railways the decline
II the value Of these securities has been
sharrlv felt IN This market
Confidence in Mexican Rails.
The decrease Of traffic generally AMI
Carnage done 20 certain OF these lines in
The North are regarded here as the main
causes Of falling revenues; but. notwith-
standing the grave position Of these rail-
Ways, business men here interested In
Mexican rails believe that those railways
Possess great vitality and elasticity be-
a2ss they are so closely connected with
me economic development Of country
Sheh. despite all, has a great future be-
lore H. And II must not be forgotten
na' Mexican ! per cent railway bonds
rs reimbursable in gold
nose Mexican mines which are special
quoted in the French market have not
~ the crisis 10 50 great an extent as
10 banks. The mining concerns have
.'1ally proatcd by the fan in the Mexi-
~ exchange rates, because these mining
'~npanies pay their industrial local la
.Nues In the deprecated currency now
'lcuiaiing In Mexico, whereas they re-
ave their Payments in gold TO the value
Weir export OF metal abroad.
V'her miscellaneous industrials have
'-ISed only indirectly through the gen
va economic conditions The question
saw mere On AZ sides is. Are we near
y, We end Of this state OF chaos in
''1coF French opinion holds that II
- oeen quite right for Europe to leave
Cnited States with a free hand 70
With the Mexican problem. but TO
1l With Il firmly and not let things
4' While warning Off other nations
su' protecting their own citizens and
v1Ye'V now exposed 20 danger in
80 There arc already symptoms
,.s 10y french opinion may be put TO a too
81. Jest in regard 10 the attitude Of
=, om'ed States n that attitude should
~ IN being negative when great
'ltah' as well as American. interests
~ stake in Mexico.
DINING WEATHER PROMISED