The Sunday telegram. [volume] (Clarksburg, W. Va.) 1914-1927, 1915-11-28
Than There w las at the Begin
ming Of The Year as People !
Take Bank Notes. )

fliilg OF the Year as People Il
Take Bank Notes.
Correspondents OF Associated Press.)
PARIS, Nov. GA billion ana a
quarter francs S250, 600. 000l moro
gold at the end of October 1916, than
at the beginning Of January, 1914,
with q billion francs increased credit
balance abroad: that is the: situation
Eof the Bank Of France after fifteen
months OF war. q.
A billion Of the gold increase came
from voluntary offerings by the peo-
pie In exchange for bank notes of
ferings that are still coming In; the
billion increased credit is less sig
nifcant since It comes from q loan by
Great Britain, but 1t is pointed out
that, with this balance and the In
creased gold reserve, the purchasing
power OF the government abroad is
two and quarter billion francs
greater than at the beginning Of 1914,
irrespective Of the credit In America
resulting from the Joint loan.
This showing, after the enormous
expenditures made by France in
America, England, Switzerland / and
Spain since the beginning Of. hostil-
tiles, is regarded in financial circles
as remarkably fine.
Apart from the billion! OF gold ex-
changed for paper, the private purses
Of France have bought ten billion, 112
million francs of national defense
bonds; this is more than half the to-
tai increase in the public debt since
July 1914 that increase, including the
English and American loans of two
and half billion francs of which
more than two billion Is still avail
able, is twenty billion tifty-two mil
lion francs. During the same period
the public debt increased thirty bill
lion 800 million francs in England,
eighteen billion 700 million in Russia,
two billion 200 million in Italy, thir-
ty-seyen billion 90 million In Ger
man and thirteen billion 500 mil
FlionEin Austria. N I
s Banks Suffer Some.
L The disquieting r,lmors concern
ling the condition of one or more. Of
the other great French banks that
circulated after the declaration Of war
have been contradicted by the course
Of events. 1t is admitted that some
of them might have suffered alarm
ingly from the inevitable difficulties
OF a war panic, had the moratorium
not been promptly decreed, but five
months respite enabled them to meet
all emergencies.
The five leading establishments
doing general banking business, not
including the Bank Of France, held,
in deposits subject to check and in
current accounts at the beginning Of
1914, five billion 963 million francs; OF
that amount two billion 400 million
was drawn out during the fifteen days
preceding the outbreak OF hosti lities,
leaving three billion 500 million tied
up by the moratorium. Instead Of
checking more out after the banks
waived the moratorium December 81,
1915, the despositors put back during
the first eight months Of this year a,
billion francs Of the money drawn
from the same establishments in July
1914. During the same period the de-
accounts OF the Bank Of France In
creased from 712 millions to two bill
lions 696 million, bringing the total
cash on deposit in all important banks
of France at the end Of September
1916 to seven billion 1886 million francs
as aaginst six billion SIS million. at
the beginning of 1914. Attic same
time, renouncing tile benefits Of the
moratorium, debtors paid to the Bank
of France one billion 266 million OF
discounted paper
4 Greater Literally.
!; These manifestations OF confidence
have had wonderful effect ON business.
The banks have been able to show
greater liberality in discounts and
thus facilitate the revival Of trade
What is supposed to have embar-
raised at least one Of the big banks
tof Paris was the quantity Of .re-dis-
counted paper that 1t held in its vaults
August L. 1914. The statement has
been repeatedly made and has so far
been neither refnted nor. confirmed
that in the few, months Immediately
preceding the crisis the Reichsbank
and other German banks that had en-
sjoyed ,re-discounting facilities in
France ayailed themselves Of them to
the limit, loading the bank in ques-
ton with German paper that naturally
remains unpaid ~ ~. !. s. ~
B, Many people asked how 1t happen
ed that Partisan banks could be load
ed with German paper. The explana-
r{f {p AL .Irryn
more idle money in France than in
any other European country and Ger
man short time drafts and note re-
discounted for German banks was a
convenient source for the profitable
use Of that money. & A..
I Likened to Stores.
The banks of Paris have been lik-.
ened to great department stores. They
are immense establishments with
widespread interests looked after by
numerous branches in the French
provinces and the capitals Of Europe.