New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-18
GREAT SUCCESS
FOR FRENCH LOAN
Treasury's 100000
Francs in Bank of
France an Indication.
GOLD RESERVE MORE
THAN FIVE BILLIONS
Rising Price of Coal May Present
Opportunity to American
Exporters.
Nv YVES GUYOT.


By YVES GUYOT.
=. Minister o. Public Works. Editor 'LAseno'
Ec0nOm.qIe et Financiere
[By Cable to The Tribune
Paris. Dec. 1.-THE loan closed
Wednesday is unquestionably a
great success, but it is still impossi-
bic to get the slightest exact fore
cast of its total, though some indica-
ton is furnished by the appearance
for the first time in the weekly
statement Of the Bank Of France OF
$3.50, 100000 francs subscribed d.
rect to the Treasury's current ac-
count with the bank. This amount,
however, is only part of such pay
ments. Inquiries at postoffices and
loan bureaus show an enormous
amount of liquid money has been
forthcoming, even in small towns, a
surprisingly large proportion being
in gold. A curious fact was an elev-
enth hour rush, evidently by persons
who had intended to subscribe but
postponed it until the last moment.
1t should be remembered that pre-
vious war loans cannot afford a cri-
terion for judging this one, owing
10 the difference in conditions. Thus,
in the 2.25O,OO0,000 francs loan of
1871, or 3,5OO,OOO,OOO Of '72, the
total being determined beforehand,
many people deliberately subscribed
for far larger sums than they
wanted with the certainty they would
be allotted only part of their sub
scriptions. Consequently, the totals
were abnormally swelled, the loan OF
II being subscribed twice over,
while that of the following year
totalled 45,OOO,OOO,OOO. These were
largely paper figures, whereas the
present total wholly represents cash
or securities actually produced. Fur
thermore, 10 francs per share must
be paid down and all the remainder
not later than the end of next
March. in only three instruments,
whereas in 1871 sixteen instruments
were allowed and twenty in ~.
Besides the success of the loan the
Bank of Frances figures are very
satisfactory, showing a continually
rising gold reserve, now surprising
5,O0O,OO0,000 francs, which is espe-
cially good, considering how much
gold has been paid simultaneously as
subscription to the loan. Undis-
counted bills deposited by persons
wishing to subscribe TO the loan have
increased 55,OOO,OOO francs in the
week.
There has naturally been large
increase -5OO,0OO,0O0-in advances,
against scrip, also due to the loan.
Finally. note circulation has been
diminished by no less than 621 ,OOO,-
900 francs.
An altogether exaggerated atten-
ton is being paid to the rise in
prices, especially of food and COM
bustibles. Prices have risen, no
doubt, but the rise is not excessive
considering that the nation is at
war, with consequent limitations to
the supply of freight and shortage
of labor. Anyhow, prices are less
high than some years ago in time Of
peace. The rise in coal has caused
the proposal Of remedies which are
risky, if not dangerous. Thus, it Is
suggested that the state undertake
a coal selling monopoly on the same
lines as its grain monopoly. Pro-
moters of the scheme appear not to
realize how cumbrous and imprac-
ticable it is. Unless this proposal
succeeds, which appears unlikely,
there might be an opportunity for
American exporters to put coal on
the French market. Hitherto, their
efforts have been unavailing, but
France undoubtedly needs a large
quantity of foreign coal, and it is
possible that America might compete
favorably with England.