Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1915-11-28

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short time drafts and notes rediseount
ed for German banks was a conven.
lent source for the profitable use OF
that money.
The banks Of Paris have been link.
ened to great department stores.
They are immeise establishmentssw with
widespread interest looked after by
numerous branches in the Franeh
provinces and the capitals of Europe.
They do everything in the way of fin
ancial transactions from the discount
ing Of a thirty day note to the float
ing Of a big government loan. They
discount bills and notes, rediscount
banked paper, sell foreign exchange,
make foreign and domestic collections.
buy and sell all sorts Of coins, ex-
change all kinds of currency, loan
money on open accounts, rent safety
deposit vaults, take charge Of securi-
ties, collecting the interest, advance
money on stocks and bonds, execute
stock exchange orders. float govern
ment loans and place other bonds and
securities Their greatest source OF
profit in the past has been undoubt-
eddy in the underwriting Of loans Cor
foreign governments such as Turkey,
South American states and the Bal
kans Through their medium also
billions francs in American securities
have been placed on the Franch mar
ket on which the profits could not
have been much less than ten per
cent.
Objections have been frequently
raised against the concentrations OF
such immense sums in these banks,
amounting practically to an obstacle
to any great financial transaction that
the banks might not approve. The
banks have been further reproached
with concentrating their interest on
foreign loans and discounts that Of
fered bigger profits to the exclusion
of French commerce and industry and
thus hindering the development Of
foreign trade
Notwithstanding those objections,
money was so abundant that 1t was
cheaper in France than in almost any
other European country before the
war AT the same time a great deal
more was required for current bust
ness transactions than in other coun-
tries on account Of the resistance 10
the check system TO certain categories
Of merchants and public officials. The
notary, vital institution in France.
without whom inheritance could not
be settled and transfers could scarce
ly be executed, refused absolutely to
accept any ones check a Rothschild f.
must produce the legal tender to
notary.
At the end Of the month French /
houses make up the list Of their pay.
ments, 80 to the bank for the cash
and pay all bills in currency. A few |
accept checks from well known Gus.
toners but the little tradespeopIe OF
the quarter look upon anything but
bills of the Bank Of France, gold or
silver. with suspicion. In consequence. +
a greater proportion of the total cir.
is daily passing from hand to .
hand in current business of life in .
France than in most countries. /
Considering this formidable need q
Tor floating currency, the natural tend
sncy Of depositors to draw on the
banks in every crisis and the great
drains Of war on the resources Of the b
the condition of French banks
Is considered satisfactory. A recent
report of the Credit Lyonnais disclos-
I'd the fact that its war losses were
entirely covered by a sinking fund
provided for other risks that has al
'eady expired. The case Of the Bank
IF France is exceptional; its profits
nave more than doubled by reason Of
is participation in the financing of
he war