New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-24
M. Guyot Says France Has
Paid in 43 Per Cent in
New Money.
TREASURY BONDS
IN STRONG DEMAND
Deputies Consider Tax of Half
All War Profits and Levy
on Incomes.
By YVES GUY0T.
EI.mlnlstcf Of Public Wobu. Editor "ltfenos
Eoonomlaus 81 Finaneiero.'
[By Cable " The Trlbunel

Paris, Dec. 23.-The amount and
number Of the subscriptions TO the
Loan Of Victory and their dispersal
among so many banks and offices
for receipt still prevents the result
from being divided into its various
clements, but one can say that Of
the loan about 40 TO 43 per cent Is
new money, which means something
over 6,000,O0O,0O0 francs Of abso-
lutely new resources for the govern
ment, while in the neighborhood Of
$500 100000 of Treasury bonds and
short time loans which would have
fallen due very soon have been con-
verted into the new loan.
To realize the true meaning Of
these figures in marking the success
of the loan il must be remembered
that for nearly year the industrial
and commercial production Of the
country has been almost at stand
still, while the population have had
to live on their reserves. Also, the
departments Of the north, which are
essentially industrial and the rich
est Of France, have been occupied
by the enemy and unable to furnish
a penny toward the loan.
Furthermore, no limit was put OIL
the loan. and for this reason people
had TO subscribe for exactly what
they intended to take up instead Of
oversubscrioing. with the knowledge
that they would receive only small
percentage of what they asked for,
as has been the case in all former
loans.
But despite all these obstacles,
the loan produced more than IA
5OO.OOO,00O francs (nearly $1,000
O0O,0OO), which is to say that if the
loan had been issued in the same
yav as the loan of 1872 its success
would have been five times as great.
Furthermore, since the subscr p
tons to the loan have closed pur-
chase of three, six, nine and twelve
month Treasury bonds immed ately
recommended. In consequence the
national Treasury is assured not
only of the enormous sum received
from the new loan, but Of a steady
flow of new money into its Golfers.
The statement of the Bank Of
France is very satisfactory this
week. There is an increase Of 3d.
100000 francs IN gold holdings,
while there is a diminution Of 2,4OO,-
100000 in advances to the state.
Certainly the government will
have to continue to consider its fnan-
cial needs. Credits for 1916 must be
voted by Parliament without delay,
and it is estimated that military ex-
penses only at the beginning Of the
wear will reach 1,750,O00,0O0 francs
monthly, while the total expenses
will be 2,500,OO0,OO0 francs a month.
Without doubt loans can be placed
and Treasury bonds sold easily, but
it is easy to understand that in the
presence of such enormous needs the
government will have to consider
new taxes also.
For this reason certain members
of the Chamber Of Deputies are al
ready considering proposing law
by which corporations will have to
turn over TO the government half
of the profits realized since the be-
ginning Of the war. Their idea is 20
make this proposition a part of the
budget, so as to prevent corpora
tons from distributing profits until
Parliament has time to discuss the
question.
There seems a probability that
this tax will be imposed on all those
furnishing war supplies, at least. 1t
is to be feared that this tax will
lose its effect on future dealings, as
army contractors will probably take
it into consideration in making fut-
ure contracts, and the gain to the
state by the tax will thus become
purely illusory, the state paying out
with one hand what it received in
the other.
There is also talk of an income
tax in 1916. 1t has already been
agreed 10 by the Chamber. but the
Senate seems TO think it will be i'm
possible 10 gather figures of any
value under present conditions.