The New York herald., 1921-07-11
PARIS IS OPTIMISTIC
IN CHINA BANK CASE
Hope of Rescue Causes Invest
ing Public to Shake Part
of It's Timidity.
SOME BONDS SELL WELL
Steel Combination Similar to
Those in L. s. Is Sprout-
ing in France.

Special Gable 10 THE New YORK HERALD.
Copyright, 1921, bU THE NEW York HEsALD
New York Herald Bureau.
Paris, July 8.
The Bourse presented many peculiari-
ties last week owing to the excitement
over the affairs of the Banque Indus
trielle de Chine combined with the
approach OF the vacation period loans
forthcoming from the cities Of the devas-
tated regions. reports from the United
States regarding Mexican oil stocks, and
last but not least evidence that the Gov
ernment has decided that the future de-
pends entirely upon internal financial
solidarity being attained at all costs.
Hesitancy of investors was somewhat
relieved toward the end of the week by
the prospect that the Banque de Chine
can be rescued at least partly fom its
upset, and IL Is believed that the next
fortnight will see an awakening interest
in numerous bond issues being offered
in the financial markets.
OF these, the City of Paris per cents.
are commanding the greatest attention,
with the Rheims and Verdun loans also
finding favor. However. numerous in
dustrial loans, such as those launched
by a group OF sugar refiners and by the
Compagnie Generate des Tabaca, are
having unexpected success. There Is
plenty OF coin in the woollen stockings
of the French peasants. and II seems
that until the Governments policy is
more clearly defined the purely indus
trial issues will reap the benefit.
Some idea OF Frances investing ca
pacity can be gained from statistics fur
nished to THE NEW YORK HERALD bureau
from an authoritative source that in the
first six months OF the year almost
5000, 10000 francs was found for the
creation of new corporations or for In
creasing existing capital stock, this ex-
ceeding the highest record for emissions
of national loans or Treasury bonds.
Two year bonds. however. had con-
siderable success during the month upon
being offered to the public. The in
come from these. coupled with the
sudden interest in National Defence
bonds, enabled the Government to re-
fund to the Bank of France 100. .000.0 900
francs, bringing the indebtedness down
10 5000 900. 900 francs. In the seven
weeks involved in this transaction note
circulation diminished 1,340, 100000 francs.
Little activity Is believed to be possi-
BILE in industrials generally, but close
observers are expecting an early I'M
provement in metallurgicals Following
the news that certain large iron and
steel mills are seeking a policy or
agreement with Luxembourg and Bel
gian mills with a view to meeting Ger
man competition. as revealed In the ex-
elusive interview of THE NEW YORK
HERALD correspondent with Eugene
Schneider. president OF the Schneider
Creusot Works. 1t IS generally believed
rFlat this is another step toward the
formation of a steel combination along
American lines, such as was foreseen
sn the recent amalgamation OF more
than forty mills of allied companies In
northern and eastern France.
\ The weekly report of the Bank OF
France shows a fairly satisfactory
maintenance OF the increase In the gold
reserve, but the discount rate remains
at per cent, although the rate on
short term notes dropped from AZ TO
per cent, with plenty of money avail
able.