New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-03
Subscriptions Continue
Flowing In as Germans
Belittle Result.
BANK OF FRANCE
BALANCE GROWING
Steps Taken to Stop Hostile
Stocks Entering Through
Neutral Switzerland.
By YVES GUYOT.
ES.nInlste Of Public works. Eoitor "l'kssns,
Ecsrsmlsus ct FlnaHeiers."

lBy Gable &, Ths Tribune
Paris, Dec. 2.-The Bourse end
Of November liquidation is proceed
ing, with carryover rates between 8
and 6 per cent on long" accounts.
Three per cent rentes are carried
over at 80 centimes-that is, at 5
per cent-whereas at the previous
liquidation the quotation was par,
the difference arising from deliv-
cries Of rentes made for the purpose
of subscribing to the loan, which
created the long account. Coulisse
rates have varied, but generally are
about per cent. Arbitrage rates
have been unchanged since the end
Of October.
Loan subscriptions continue TO
flow in, but the total is not likely to
reach the fantastic figures given in
certain quarters. Such suggestions
probably emanate from German
sources, so that when the inferior
total is announced the German press
can say: "The French expected
So ,0OO,OOO,0OO, but haven't obtained
half Of it."
A similar man9uvre was tried on
the emission price. When | stated
here that the price likely would be
So certain quarters gave it as SO,
with the result that when the price
was published the Germans declared
we were compelled to issue at
lower rate than originally intended.
Gain in Bank Balance.
The Bank of France balance sheet
shows a further gold increase of
42,000,0O0 francs. Loans on scrip at
the date November 10 were $4,000
600 francs; on November 20, 067,-
100000 francs, and to-day 578,4O0,-
900 francs. The increase is insig-
nifcant relatively to loan subscrip-
tions. 1t is proof that subscribers
had little recourse to this means Of
obtaining cash.
The bank charges 6 per cent in
terest, according to its custom of
fixing rates at / per cent above cur
rent discount. II the bank had
wished to boom loan subscriptions it
would have lowered the rate to l be-
low discount, making 4 per cent, and
thus giving the borrower a gain of
1.73 per cent on stocks pledged to
enable him to buy the loan. Or by
restricting loans to fifty per cent of
the value Of scrip the bank might
have increased the number of stocks
or which it gave loans, thus includ-
ing foreign state loans like the ex-
terror Spanish or American railroad
bonds. Doubtless this method would
have procured at least billion dol
lars more for the loan, but the bank
preferred to renounce it in order not
to increase the amount Of its own
bills.
Holders of foreign stocks have
done considerable business through
arbitrators. Owing to buying from
Spain exterior Spanish has risen,
aided by exchange, the Spanish pur-
chaser getting the benefit Of ten or
eleven per cent through the peseta
premium. Similar arbitrations are
being made with the Swiss, Scandi-
navian and Dutch state loans. They
are profitable alike to the foreigner,
who gains by exchange, and to the
French seller, who is thus enabled
TO buy the loan and get better in
terest plus the probability Of in
creased value of shares at the end
OF the war.
Unfortunately this operation is
impossible for American stocks like
Central Pacific, Missouri Pacific,
Chicago, Milwaukee & st. Paul,
Cleveland e. Cincinnati, New York,
New Haven & Hartford and Penn
sylvania, which in the form Of bonds
are mistakenly nationalized. How
ever, the following stocks can still be
sold on your side: Atchison, Amer
lean Telephone and porphyric cop
pers-Chino, Miami, Ray, Utah,
Butte and Superior.
Postal Hunt for Hostile Bonds.
To prevent negotiations of hos
tile stocks or bonds seeking to
enter France through neutral
Switzerland, strict scrutiny has
been established at postal head
quarters, and letters from Swift
erland OH the way to New York
for negotiation there have been held
up. Henceforth, by agreement with
NJ. de Halter, president of the Swiss
National Bank. stocks sent through
the post must be accompanied by a