New-York tribune., 1919-12-03
France May Open
Bureau to Sell
Internal Bonds
Would Create Agency in
L. 5. to Offset Outflow
of Goods With Influx
of Government Securities

France IS planning to build UP credits
N the United States through an exten-
s;ve drive in behalf o. the sale Of her
internal government bonds in this coun-
.rv +, became known Yesterday The
object. Of the proposed campaign would
be to stop the depreciation Of French
exchange. which yesterday slumped to
new low record.
Until the peace treaty controversy at
Washington is settled. France is not
rkelv 10 come to decision on this mat
ter. But steps have already been taken
- provide a service for Keeping the
bankers Of this country continuously in
formed about the precise condition of
French public and private finance. and
for the presentation Of other intorma-
ton relating to the fuctuating market
value Of the bonds.
Plan Wholesale Selling
The creation Of i special bureau in
New York is beng considered. This
bureau. which would handle The whole
sale distribution Of the bonds, would be
operated under the general supervision
o. the French High Commission. and
would seek TO place the French bonds IN
the hands Of American banks and bond
dealers who would be expected to sell
them to the general public. In view Of
the unfam iarlty Of Americans with the
internal bonds of foreign countries. il Is
felt advisable TO have clearing house
both to disseminate information and to
stimulate interest
As soon as the SO, 100000 600 fund by
which the United States Treasury
country since 1917 became practically
exhausted and American bankers
recogn 4zed the need Of devising new
methods Tor aiding Europe financially,
financial leaders here asserted that II
would be necessary either 70 extend
credits or 70 purchase outstanding SC
curities o. foreign countries. The sale
O. French ir-ernal bonds in this coun-
.ry would yield practically the same
results. bar aers say. as the AOtation
ana sale Of new French external bonds
in Jhis country.
Instead of Loan
Because Of the hesitancy Of inter
national bankers to float d huge issue
Of new foreign securities in this mar
ket at the present time, the French
government. some observers feel has
every inducement for carrying out her
plan 70 increase the sale OF the inter
raj bonds IL Offering the latter
through Investment bankers. the
bureau would have no fixed amount to
get rid o.. as in the case OF new
external loan. but could feed them
OH. just a. fast as the investment mac-
he, would absorb them
q. 49,
il would in TO way It is believed. III
terfere with the arrangement of an
external loan with American bankers.
n offering Internal bonds. France
would have TO create no new securities
bat merely export part Of those ou--
standing government Obligations which
we've originally pat out TO be PLACED
manly in tie hands Of French IN
TIE shipment Of such bonds to Amer
,ca would act 70 some extent as an
ef~e. to the sending OF goods from the
United States 20 France. Until France
emerges further from the reconstruc-
ton Veriod she cannot expert large
Quantities Of commodities. and there
fore her trade with the United States
has become one-way commerce. This
CONDITION. IS reflected in the crashing
81 French francs 70 new low levels in
terms Of the dollar Normally the dol
lar VIII buy BIS francs; yesterday it
would buy 1902 francs.
The present high premium on the
dollar would enable American invest
ors to buy the internal bonds Of France
for about half as much In the cur
rency Of the United States as normally.
Res des, several internal bonds are now
selling al nearly 30 per cen. discount
IN francs Besides getting the interest
on the bonds which is IN most eases
not large. the American buyer would
have the speculative feature. which
arises from The possibility that, after
French industrial life is restored the
franc viii move toward the normal
Private Bankers Active
Private investment bankers in the
United States have already undertaken
to sell French and other foreign in
ternal bonds, but thus far the French
government has not directly partici-
pa.ed III the operations.