The New York herald., 1921-06-20
HOPE AMERICA WILL
AID FRENCH FINANCE
Paris Looks to United States
to Help in Mobilizing
German Debt.
BOURSE WAS NEAR PANIC
Government About to Support
Banks and Loan Consoli-
dation Expected.

Special Co6lc to THE New York HERALD
Copyright, 1921. By THE NEW YORK HERALD.
New York Herald Bureau,
Paris, June ~.
Although Paul Dounler. Minister OF
= definite scheme for ameliorating
Frances finances, his promise failed to
materialize in the Chamber and Senate
this week, when. in his addresses. M.
Doumer confined himself to statistical
reports and urged the necessity for
greater economy. %
Financiers here arc deeply interested
In the negotiations going on regarding
the mobilization of the German debt.
With the news that American financiers
arc inclined to approve the scheme, and
with the Federal banks assistance in the
solution Of the European problems now
considered certain. 1t is believed here
that the crisis which has been threaten
ing certain banks, such as the Province
group and the Banque Industrielle de
Chine, can be warded off by prompt
governmental aid, and also that the
dangerous approximation no longer will
be necessary. and bond issues to be at
tempted by the Finance Ministry, with
German bonds and French resources as
guaranty, having virtually the same
effect as the issuance of billions Of francs
In new bank notes. which has been ad-
vocated vigorously by the Socialist
groups
Boursc Has Attack of Nerves.
The Bourse itself last week had an
attack of nerves. some writer's declar-
ing that Thursdays session with the
bank quotations dropping and oils sliding
downward as the result of the revelation
that Mexican oil wells were petering
out, brought France nearer financial
panic than it has been since the days OF
laws governing Frances paper money.
Had NJ. 'Doumer given actual plans.
instead OF figures already well known
to French bankers, such nervousness
might have been averted, but as it was
1t is pointed out that each succeeding
crisis has graver repercussion on
Frances credit organizations.
The Government Is on the point Of
advancing sufficient aid to restore the
Banque Industrielle dc Chine. with the
Chinese Government probably covering
large portion OF these advances by
Chinese bank notes. Financiers are
unanimous that the situation can be
saved by sound management, especially
as funds are readily avufiable.
Loans to he Consolidated.
Government loans can be applied TO
such salvage processes. AS soon as
the treasury bond subscription closes
next week. the Rheims issue will be
floated. to be followed by the verdun.
Bethune and City OF Paris loans all at
per cent. and tax free. These. loans
are preparing the way for NJ Doumer's 5
plan for great consolidation of issues
which will give France plenty of time
to pay off her internal creditors. Bank
ers or all classes report that never has
France had such an excess OF deposits.
The public is unwilling to invest IN
Bourse stocks, but 1t takes the chances
OF Investing in Frances own issues.
which seems TO predicate future sue
cess in this direction. --.
The bankers themselves were alarmed
last week by the report that the con-
solidating of the loans next fall would
be a forced one, but they have re-
ceived assurances from the Ministry of
Finance that no such move is con-
templated.
Both advances to the State and the
note circulation Of the Bank Of France
diminished more than 00,000,000 francs.
according to the weekly statement, but
there is still little increase in the gold
reserve. Bank l,esitancy caused a drop
ping off In discount transactions TO
practically nil, with short term notes
calling for Az per cent, but there were
few deals. -