Omaha daily bee., 1919-08-02
Financial Psychology
From the New York Times.

Baron Jacques de Neufize is of the opinion
that credit is largely matter of psychology.
He has come to America in behalf of the Bank
of France to aid in establishing credits, the OBJ
ject of which is to restore the value of the
franc so that trade with us may be resumed in
full volume, and his first appeal is for fuller
mutual understanding.
Throughout the world, as our phrase goes,
money talks; but in each country it speaks a
different language. Our Vocabulary is that of a
people accustomed to deal on large scale with
definite material values. We have in abundance
what the world most wants. and it has been
our custom, very largely, to let the facts of the
situation conduct our propaganda. Our money
talks in monosyllabes. When it is question
of invading new territory the method has dis
advantages, as we have found to our cost in
in South America. Even in France there arc
difficulties. An American Office suite furnished
in mahogany, with multitude of telephones
and stenographers does not convince the
French buyer. He smells out waste, and his
cautious, analytical mind tells him that in all
pay for it. So widespread is this economic IN
stinct that, if French salesman who is travel
ing second class sees a customer travelling
third class, he lodges to the cheaper compart-
men for fear the customer will conclude that
there is somewhere an illegtimate profit and
demand lower prices. In America a salesman
thinks that he owes it to his own credit and to
the credit of the house that employs him, to
breathe air of prosperity. 1t pays to adver-
tise. In France what pays is reasoned sales
manship, with New Years gift to the Gus
TONER'S wife and always word for the chill
dren. Money talks clearly, reasonably, with
human touch. Baron de Neuhize does not say
this in set terms; he suggests it merely, and he
does so with unfaling humor and address. But
in speaking of the French attitude with regard
to the proposed sale of bonds he was admirably
explicit
Cautious as the French are, they feel that
their situation is bascally sound. OF the 5,0O0,-
100000 to 60O0OOO,000 francs of trade obliga-
tons outstanding at the time of the moratorium
of 1914 only little over E per cent are still
unpaid and at least half of that sum is made
up of debts left by men killed in the war. Half
ruined factories are operating under tar paper
roofs and with paper partitions wthln-yet
turning out wares of the accustomed standard.
Labor troubles have on the whole been sue
cessfully handled. French confidence is most
clearly evident in the fact that the investment
market is good the loan of 100000 francs re-
Gently issued by the city of Paris is quoted at
3 per cent premium Admittedly, the problem
verting short-term securities into long-term
bonds is big one; but France understands its
people and is confident of solving it. The one
vitality serious problem is of making it possible
to get goods from abroad-the problem of re-
establishing the purchasing power of the franc.
The basic values are there in material resources
and the energy, intelligence and thrift of the
French people.
Baron de NeuAze offers this little address
to hesitant financial psychology: "In 1914 you
pitied us from the depths of your hearts, but
you said: Poor France, it will never be able
to stand against Germany We did stand
against Germany; with your good help and
that of our neighbors we have driven the Ger
mans back Now you say again: Poor France,
it will never be able to work again and pay its
debts! But we are able to work-are work
ing Already your sympathy is with us; in
the end you will realize that to help us is good
huSineSS"