Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1916-02-03
OFFICIAL TELLS
OF WAR TRADING
Head Of French Finance Committee
Explains 0ne-Sidedness of Deal
ing With America.

Paris. Jan. 22.-(Correspondence OF
The Associated Press. You Ameri-
cans are selling us immense quantities
of supplies some good, some inferior
at high war prices, but you do 1t
honestly: you tell us what you're g.
ing TO deliver" said Monsieuer f. Aim
ond. head of the senate finance COM
mittee. reviewing the present condi-
ton of exchange for The Associated
Press.
We are buying perhaps more than
$500 100000 worth of goods a year
from YOU now. while, aside from silks
and satins. we are selling yol little Of
ANYTHING" he added. That trenen-
dous balance of trade, with the war
still going on. explains why the $780,
600 600 YOU loaned us was Insufficient
TO euualize exchange.
THE balance of trade was always in
your favor, but you, yourselves, main
tanned the purity Of the franz by
spending your dollars in travel
through France.
A billion franCs-twO hundred mil
lion dollars is what We are losing an
nually since Americans are spending
al home the money they formerly
spent here, making difference
against us of something like four mill
lion francs, which, of course, bill
lion and quarter loan cannot ofeset.
Exchange between London and New
York is easier because English inves-
tors hold American securities to far
greater amount than We. The pay
ments of interest and dividends on
those investments relieves the situa
ton. If France had placed IN America
the fifteen billion francs she has Joan
ed Russia, the interest payments
would go far to equaliZe exchange.
Exchange between Berlin and New
York suffers from different causes
the franc is al q discount in New York
because the money is continually go
ing that way Germany has no big pay
sure transatlantic transportation and
can buy in only limited quantities OF
her adjoining neutrals neighbors she
produces her own steel, coal and
chemical products, while we must my
them in America With us the depra-
citation may be considered a material
and accidental circumstance. After the
war, or as soon as we have bought all
the steel and other war supplies we
need from you, the franc will go back
to par
The war is now costing Us mo and
half billion francs 5501 C20,euti b
month. Of which one billion 500 million
francs are spent in France" said Non.
sieur Almond, leading up - tie qucs-
ton Of Frances financial require
ments.
AT that rate we shall have to issue
another loan in the near future The
biX and a half billion francs in lash
produced by the loan issued in Dp2am-
!er will be spent by the month of
april By that time nearly five b. liol.
francs Of the money distributed
through the country will be available
for another loan that will be f1oatec
under far more favorable conditions
The SaloniM situation, which was
acute at the time OF our five per cen;
loan. unquestionably frightened big
capital. This is we'll known in finan
cial circles and is borne out by man,
facts connected with the loan. Fol
instance, the number of subscribers
was greater in proportion to the tota,
amount subscribed than of any gov
ernment loan issued in France.
Three and half million subscrib
ers took fourteen and a half billions
IN bonds, or an average of about 4 900
francs each, The average of former
loans was from 10000 to 100000 francs
each. This proves that it was largely
the small capitalist. the little trades
man, the humble classes with small
savings that took up the loan. Another
loan, issued under circumstances he
coming every day more favorable tt
france. will produce greater cash to
TAI, as / estimate that there is AZ ths
present time 1412 billion francs in cir
cuiatlon in France. Deducting the ST,
and half billions in cash subscrib
cd to recent loans, there are seven an,
4 billions unsubscribed TO add to ;
considerable portion OF the six and ;
hall billions that will be in circuIa
ton again before new loan is issued
French loans are subscribed by tn,
people; that fact should be borne i,
mind in comparing its issues Will
those Of other governments. In Eng
land. Germany and Italy it is a bank
Ing affair in which the big CAPITA
Is Immediately interested. Our loa,
was great success under the cir
cumstances since it brought out scar
cely anything more than the small
savings. The next one will reach tn
big investors"
Mean Thing.