New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-04-13
Paris Market in State of
Absolute Inaction Before
Closing for Easter.
FRENCH RENTES
SHOW FALLING OFF
Present Period of Depression
Unduplicated in Memory of
Oldest Financiers.
(By Gable 10 The Tribune. ]

(By Cable TO The Tribune.
Paris, April 1.-THE Paris Bourse
closes for Easter n state of absolute
inaction. but with optimistic expectations.
The fortnightly settlement this week will
be carried out under unusually easy con-
ditions The bitterness being developed in
the electoral campaign is causing some
anxiety among the stabler elements OF
the community and the vicious attacks TO
which all politicians who have acquired
experience in the handling of the national
finances are being subjected are regarded
as particularly deplor1b.e. French rentes
closed on Thursday at So francs 27ls CEN
times. being loss Of 50 centimes on the
broken week.
Not in the memory of living financiers
has the Bourse experienced so prolonged
a period of depression. The financial
marxct OF course, is not the entire state,
but ii forms an essential part Thereon
Finance enters for an increasingly large
mart into the economic life OF great mod
ern nations and transferable securities
have been one of the chief instruments IN
the conquests OF civilization. Financial
men affirm that the fiscal measures re-
Gently voted by the Senate form an IN
strument Of war of the most dangerous
kind with which to strike at the great
financial market of France and the Sc
curities negotiated there.
Taxes on Securities.
Three kinds Of imposts already weigh
on transferable securities. These are the
stamp duty of more than one-eighteenth
of the nominal value of shares issued by
groups other than governments Inc
stamp duty will now be henceforWaro
levied on foreign state funds in the
shane of a per cent tax, payable at the
moment OF issue or on the introduction
of the stock on the Paris Bourse.
The next is the tax Of per cent on
interest and dividends of securities
other than foreign government STOCKS
Then there is the transmission duty
which is a graduated tax according 10
the nature of the share certificates. For
nominal securities the rate is 2. or per
cent and is payable at the moment Oh
transfer, while shares to bearer are car
cuIated on an annual tax made out at
the rate OF a twenty-ffth OF l per cent
based on the average prices or these Sc
curities during the year preceding the
collection of the impost. Thus the vote
NJ the Senate combines at once rails
ing Of the levels of present taxes ana
their extension TO securities which nave
hitherto been exempted.
The tax on securities other than state
funds has been increased so per cent
while the transmutation OF securities Oh
a nominative order TO bonds or other
paper securities made payable to bearer
is raised from 0.75 per cent to 09O per
cent Now coupons Of foreign state
funds which have hitherto been free
from any annual duties VIII nave 10
nav per cent under the new tax on
movable values.
Bonds to Pay IS Per Cent Of Coupon.
This shows the crushing load which
will be laid on the shoulders OF the hold
ers of transferable securities ACCORDING
70 the fiscal regulations adopted by the
Senate.
For instance. a bond, payable to bearer,
OF one of the French railways and quoted
at 400 francs now pays In all taxes
e,nounting 10 1 franc 30 centimes yearly,
representing 1856 per cent OF the income
derived from the bond. When the new
regulations become law the same bond
will nav . francs Is centimes, or 10 per
cent of its revenue.
Governments in financial distress ex-
claim, Take money wherever you can
find IT," but they fail TO see that by
accommodating charges upon charges for
fiscal purposes on transferable securi-
ties they will necessarily drive away
finauciers from a class OF investment
which has hitherto enjoyed all their favor
and attention. That day would mark the
end in France Of all great financial I'M
dertakings and loan issues which require
huge capital.
CAPITALISTS might have been willing to
bear new and heavy charges II they were
sure that no further loss would follow
except further disbursements. But this is
not the case. The proposals TO prevent
evasion on large scale Of the new levies
on foreign stocks amount TO Veritaole
trap. Brokers and capitalists who under
take arbityage operations between Paris
and foreign markets Will be placed in
delicate situation. Again, what will be-
come Of the active business in coupons?
The relief OF real estate is, no doubt,
useful reform, especially in view Of the
vote OF the peasants at the pending cleo
tons. But It would be as we'll II this re-
form were not effected at the cost OF
strangling the financial market by crush
ing impOsts.