The New York herald., 1921-08-08
FRENCH SECURITIES
SHOWING STRENGTH
Spanish Crisis and Russian
Famine Engage Attention
of Financiers.
FOREIGN DEBT REDUCED
subscriptions Heavy to New
Two-Year Treasury Bonds
Of Bank of France.
FOREIGN DEBT REDUCED

Special Gable 70 THE NEW YoRK HERALD.
Copyright, f9ef 6y THE NEW YORK HERALD
New York Herald Bureau,
Paris. Aug. Z.
With Russia's famine occupying the
attention OF the Western world, It is only
natural that the French Bourse should
have shown considerable hesitation in
exterior operations last week although
1t is admitted that French securities are
showing more strength than usual. So
far the Spanish troubles on the Moroc-
cial markets, but II the Spanish defeat
continues serious developments are
foreseen, in which French financiers
are likely to be seriously involved.
Il is recalled here that the Spanish
Marquis de Cortine during the Brus-
sells conference last year. showed un-
precedented pessiTnism regarding Span
ish financial prospects. arguing that If
against native elements. the Spanish
treasury would find itself seriously in
voyed. II is realized here that any
loss by Spain would reflect serioasly on
the French markets. as the commercial
deficit of both countries usually Is not
greatly separated.
During the last twelve months spain
| has developed a deficit of 120 600 010
pesetas, Notwithstanding exchange vari-
atoms. with expectations of ore. wool
and hides especially affected. As far
| as Russia Is concerned the French at
| titude is unchanged. F'inancfers insist
that it is impossible to carry on nego-
tiations until the Soviets recognize the
debts OF the pre-war regime. while the
! conferences in which exAmbassador
1 Noullens is involved are said to have
decided that Lenine and Trotzky must
recognize not only the debts but must
agree TO demoblize the Red army and
abandon their original intention of TO
menting d worldwide revolution.
With these two problems engaging
the attention of Paris financiers, II Il
only natural that the visit of the Ru-
manian King has been overlooked. al
though it is certain that Il was to pre-
pare the way for Franco Rumaniar
loan Of 100000 francs gold which
would have an important effect on the
/ exchange. 1t is understood that the
French Government has refused to con
! slider this until the more serious Euro
pean questions have been settled, but
| il is foreseen that a Rumanian loan Is
certain to be granted eventually. as Ru-
manian political support Is essential "
/ any settlement OF the Russian problem
- far as French securities are con-
cerned attention Is still concentrated OF
4 special issues for the rehabilitation Of
beet sugar refncrics and tic restora-
tion Of damaged coal mines, for which
4 special Issues have been arranged with
I Government consent. The situation OF
the Bank OF France continues to i'm
pr,ve weekly since the two year Treas
ury Bonds at 6 per cent, arrived. II was
announced this week that the frs
months subscriptions total more thar
| 5. 900. 600. 900 francs. which will enable
the paying Oft not only q considerable
portion or advances to the state. but
also more than 2.5O00oo,o0o francs q
| the foreign debt. Paul Doumer, Min
/ lister OF Finance, is urging that this
4 issue be continued until December, al
| 1t will probably make unnecessary th'
/ doubling Of the sales tax, which At firs
seemed the only possibility Of striking
! an equilibrium in the budget for 1922.