Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-12-03
FRENCH CONTINUE
TO TAKE SHARES
IN THE NEW LOAN
Germans Attack Result, but
People Stand by the
Government
BANK BALANCE GROWS
BY YVES GUYOT

Editor L'Agence Economique ct Flnancerc.
Special Gable Dispatch to the Eucutn0 Lcdger,
PARIS, Dec. 3.-The Bourse end of No
yember liquidation is proceeding, with
carry-oyer rates between and 6 per cent.
on long" accounts. Three per cent,
rentes are carried over at 30 centimes-
that is at ) per cent.-whereas at the
previous liquidation the quotation was
par. the difference arising from deliveries
of rentes made for the purpose of sub
scribing to the loan, which created the
long account. COulisse rates have varied,
but generally are about per cent, Ar
btraBe rates have been unchanged since
the end of October.
Loan subscriptions continue to flow in,
bat the total is not likely to reach the
fantastic figures given in certain quar-
teTs. Such suggestions probably emanate
from German sources, so that when the
inferior total is announced the German
press can say, THE French expected
$4,000 600, but haven't obtained half of
It,"
a similar maneuver was tried on the
emission price. When l stated here that
the price likely would be IS certain quar-
ters gave It as 96. with the result that
when the price was published the Ger
mans declared we were compelled TO issue
at lower rate than originally intended.
The Bank of France balance sheet
shows further gold increase of 4e,0J0,OJJ
vember Is We're 56i,O00OOO francs; on NO
vember 25 $4,000 francs, and today
SIS, 400 600 francs. The increase is insig-
nificant relatively to loan subscriptions
II Is proof that subscribers had little re-
course to this means OF obtaining cash
The bank charges per cent interest
according to its custom of fixing rates
at l per cent above current discount II
the bank had wished TO boom loan sub
seriptions 1t would have lowered the rate
of 1 below discount, making 4 Der cent
and thus giving tile borrower a gain OF
173 per cent. on stocks pledged TO en-
able him to buy the loan. Or By restrict
ing loans 10 30 per cent. of the value Of
scrip the bank might have increased the
number of stocks on which 1t gave loans
thus including foreign state loans like the
exterior Spanish or American railroad
bonds Doubtless this method would
have procured at least a billion dollars
more for the loan. but the bank preferred
10 Tenounce It in order not to increase
.ha amount of its own bills.
Holders of foreign stocks have done
considerable business through arbitTators.
owlng to buying from Spain, exterior
sDanish has risen aided by exchange.
the Spanish purchaser getting the benefit
of 10 or II per cent through the peseta
premium. Similar arbitrations are being
made with the Swiss, scandinavian and
Dutch State loans They are profitable
alike 10 the foreigner, who gains by eXr
change and to the French seller, who Is
thus enabled 10 buy the loan and get
better interest plus the probability Of in
creased value OF shares at the end OF
the war.
Unfortunately this operation Is imnossi-
bic for American stocks like Central Pa
eide. Missouri Pacific. Chicago hilwau'
kee and ST. Paul, Cleveland and Cincin
natl New York. New Haven and Hart
ford and Pennsylvania, which In the form
Of bonds are mistakenly nationalized
However. the following stocks can still
be sod on your side: Atehison. American
Teiephone and Phornyric coppers-ChinO
Miami. Ray. Utah. Butte and Superior,