New-York tribune., 1922-11-25
Mitchell Calls
Frances Bonds
Safe and Sound
National City Head Says His
Tour Abroad Convinced
Hin Nation Is Econom-
ically, Financially Secure

Charles Z. Mitchell, president Of tht
National City Bank, fresh from visit
to Europe, told the members Of the
Bond Club at their luncheon yesterda,
| Why he Is optimistic about the Euro
pean outlook. He paid little attention
in the course of his remarks to the po'
lisical elements of the situation; he
dwelt rather on fundamental economic
and financial data to support his dec.
laration that French, Belgian and Scan.
dinavian bonds are at unjustifably low
valuations In the American market.
Primarily concerned with the French
situation, Mr.. Mitchell pointed to the
approximately 40 per cent increase ir
railroad and ocean tonnage, the i'm.
provement in exports, the increase In
production and the restoration and re.
turn to productivity of the devastated
regions in France, He told of his
doubts when leaving this country as tc
French circulation and short term note
issues, as to Anglo-French relations, az
to the bulge. position and as to the
adverse French trade balance.
Currency Debated Z Per Cent
During the last two years." said Mr.
Mitchell, France has Debated It's cur.
president of the Bank of France, said
to me: I would rather cut my righ,
hand off at the wrist before eve,
authorize the issue of an additional
franc in our circulation. The same
view came from the Minister of Fl.
nance and from M. Parmentier. / am
satisfied that we need not expect to.
boggan decline such as has taken place
in the mark SO long as they hew to
this line.
~ found that the bankers of France
and the ministers were thoroughly
alive to the absolute necessity OF
standing shoulder to shoulder with
England, and those gentlemen, to q
man,, told me that could go back with
an absolute assurance that break in
the Anglo-French entente was unthink-
able"
France was moving toward bal
anced budget, Mr.. Mitchell said, and
counted upon to absorb her obligations
to make up the deficit. Examination Of
the trade position, he reported, showed
him that France required an amazingly
small amount of foreign exchange to
offset her adverse balance, and that
this could be obtained without external
financing. Continuing, he declared:
MY own feeling is that French
bonds held in the hands of our ma
tionals are absolutely safe and the
soundest of Investments. In my opin-
ion French bonds as they stand to-day
are at ridicuously low credit rating"
Optimistic on England
Mr.. Mitchell! touched briefly and in
the same vein of optimism on CON
ditions in Belgium, the Scandinavian
countries and good old England
whose problem of unemployment, so
far as it's serious aspects were con-
cerned, he declared past.
With reference to the international
financial problem, Mr.. Mitchell said
that with q settlement of reparat;ons.
which he felt could not be attained
without settlement of inter Allied
debts, Europe would emerge from pres
ent conditions to real prosperity. He
reported that he had not found talk of
cancellation Of the debt to America as
ne did year ago, but @ conviction of
the folly of America expecting prompt
payment of principal and Of interest at
high rate.
"They are expecting" said Mr..
Mitchell, "and / fully believe that in
due course we will respect their view,
that this debt should be carried along
Tor long term and at q low interest
rate. With that determined, and, in
my opinion, not before, can this gem
eral question Of reparations be settled
and we emerge from the difficulties Of
the moment"