The New York herald., 1922-02-20
PARIS Is FIGHTING
CREDIT WRECKERS
French Banks Give Evidence of
Dissemination of False
News.

Special Gable to THE NEW YORK HERALD.
Copyright, 1893, by THE New YORK HERALD.
New York Herald Bureau.
Paris, Feb. 10.
With ample proof that there has. been
a deliberate attempt to wreck Frances
credit by spreading broadcast false re-
ports of impending failures and OF the
difficulties thus caused to some second
line French credit institutions to meet
their monthly obligations, French flnan-
ciers are ready to lend all aid possible
to the Government in running down
the perpetrators of this scheme and bring
back French as well as foreign con-
ddence.
During the last three days the direc-
tors of nearly every big French bank
have given the authorities evidence
which has come to their atteItion, and
according to the police the deportation
of the two financers, which was de-
creed last Friday, Nill not be the last
and French syrbathizers with Russia
and Germany may be called upon to
explain Thy they have participated in
this campaign.
Banks Demand Equality.
Upon the clearing up of this de-
structive secret propaganda, financiers
say, depends not only the prompt
restoration OF French business but also
Frances influence at the Genoa con-
ference, in the negotiations for the re-
vision of the Sevres treaty and even
the Anglo-French pact. Just what er-
feet the investigation will have on for
eign bank branches here is still uncer-
tain, but 1t is significant that there are
large number Of French financiers
who are insisting that the foreign banks
must not only be taxed on their entire
capital but must also be prohibited from
accepting deposits unless French banks
in their respective countries are ac-
corded similar privileges.
1t is reported that this matter is to
come up for decision in Parliament as
soon as the status of the Banque In
dustrielle de Chine Is fully determined
in the Senate.
THE NEW YORK HERALD correspondent
has been informed that branches Of
American and Canadian banks here are
following the situation closely, but are
not worried, as they are collaborating as
closely as possible with French institu-
tions in an effort to sustain France,
credit abroad against the systematic at
tacks initiated by the banks of foreign
countries which are opposed to Frances
aims in various directions.
COnsOrtium Planned.
One thing is certain. Henceforth there
will be a greater solidarity of French
commercial credit and savings institu-
tions with the first line banks coming to
the rescue without delay of any second
line institution which is in temporary
difficulties. This will be done by the
formation of a consortium sufficiently
large to meet any ordinary situation.
The Semoine Financicr takes up the
fight In behalf of the French banks by
declaring that they are safer than the
majority of the branches of foreign
banks owing to the fact that the latter
are usually formed as independent cor
porations with a small capital and with
no proof that the head office in New
York, Rome or London will come to the
rescue in the time of need. The paper
calls upon the Government to publish
Immediately a declaration as to the real
situation and the fact that the budget
burden will not be unbearable, so as to
reassure the investing and loaning pub
lie which 1t believes will be a great
factor In crushing the sinister move
ment calculated to reduce France to q
state OF financial inferiority.