Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-11-28

post in all important banks of France
at the end of September. 1915. to T.
2360OO00O francs as against 6.G75.OOO,-
600 Mt tho beginning of 1914. At the
same time, renouncing the benefits OF
the moratorium. debtors paid to the
Bank of France 1906. 100000 OF dis
counted paper
nave had Il wonderful effect on bust
ness. The banks have been able to
show greater liberality in discounts,
ana thus facilitate the revival of trade.
What is supposed to have cmbar-
raised at least ono OF the big banks
of Paris was the quantity of redis-
counted paper that it held in it's vaults
August |. 1914. The statement has
been repeatedly made. and has far
been neither refuted nor confirmed,
that the few months Immediately pre-
cedlng the crisis the Reichoank and
other German banks that had enjoyed
rediscounting facilities in France
awaited themselves OF them to the limit.
loading the bank in question with Ger
man paper that naturally remains un-
paid.
PARTISAN BANKS LOADED
WITH GERMAN PAPER
Many people asked how it happened
that Partisan banks could be loaded
with German paper. The explanation
given is that there was always more
idle money i'm France than than in
amy other >European country. and Ger
man short-timc drafts and notes re-
discounted for German banks was
convenient source for the profitable
use Of that money.
The banks of Paris have been likened
TO great department stores. They are
immense establishments with wide
spread interests looked after by nu-
merous\branche in the French prov
mccS and the capitals of Europe. They
do everything in the way of financial
transactions from the discounting of q
thirty-day note. to the floating Of Il
big government loan. They discount
bills and notes, rediScount banked pa
per, sell foreign exchange, make for
eiRn and domestic collections, buy and
sell all sorts of coins, exchange all
kinds OF currency. loan money ON open
account. rent safety deposit vaults. take
charge Of securities collecting the in
tercSt. advance money on stocks and
bonds. execute stock exchange orders.
float government loans and place other
bonds and securities. Their greatest
source of profit in the past has been
undoubtcdly in the underwriting or
loans for foreign governments, such
as Turkey. South American states anu
the Balkans. Through their medium
also many billions francs in American
securities have been placed on the
could not have been much less than 10
per cent.
Objections have been frequently
raised against the concentration OF such
immense sums in these banks, amount
ing practically to an obstacle TO any
great financial transactic- that the
banks might not approve. The banks
have been further reproached with con
ccntratinS their interest or foreign
loans and discounts that offered bigger
profits &c the exclusion Of French COM
merce and industry and thus hindcrino
The development of foreign trade.
MONEY IN FRANCE
ABUNDANT AND CHEAP
Notwithstanding those objections.
money was so abundant that il was
cheaper in France than in almost any
other European country before the war
At the same time great deal more
was required for current business
transactions than in other countries on
account Of the resistance TO the check
system by certain catcgorics OF iGcr.
chants and public officials. The notary !
n vital institution i'm France. withou,
whom inh critance could not be settled
and traSnfers could scarcely he exc
cutcd refuses absolutely To accept any
ones check; a RothSchild must pro.
dncc the legal tender TO u notary.