Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-25
By i. A. FLEMING.

tated French people attacking Ameri-
can tourists Eeems to find counter.
part in one of Aesop's fables. as the
American tourist has been the peren-
NAL, the consistent carrier Of golden
eggs to Paris and other parts Of La
Belle France.
Today there are other thousands of
Americans planning to go to Europe,
and every schedule includes, as mat
ter of course, Paris first and other
centers Of the republic later on.
These facts are too well known to
need substantiation. One Washington
financial institution during the past
year has sold nearly 100 900 900 francs
to those contemplating travel abroad,
while in every prominent city from
San Francisco on the West to New
York Americaiss have been buying
French money, Or what is better by
far, dollar exchange.
France has been acquainted with
dollar exchange for many days. Amer
lean Express checks, A. B. A. checks
and drafts on Brown Bros, Morgan
g. Co. and other American bankers
have long been treated as current
cash in France, Sen in small towns.
naS RAD french Debt.
There Is small dTubt but the Arneri-
can tourist has in She years since the
war furnished to tie people of France
many times the amount of the pro-
posed settlement-2n the dim, distant
future-of the deit.
Flooded the United States.
In the years following the arnnistice
the bankers of america, that is the
big houses with foreign connections.
u. p. Morgan & Co., Kuhn, Loeb &
Co.; White. Weld & Co.; Guaranty Co.
Of New York, Speyer & Co. and others,
with members of their syndicates on
this side Of the MISUNDERSTANDING
tens and hundreds Of millions of dol.
lars worth Of bonds on the American
market, theGe entirely separate from
any war debt financing.
j. p. Morgan headed the syndicates
on the great majority of the finan.
cling, and very few of these bonds are
held by the banks Of the United States
today.
The Public Is the Owner.
Belgium sold $210, 10000 due
1941-49; France, $3.50, 000, 900, with the
same naturities. While many French
cities secured fat loans. Practically
the entire world called on the Ameri-
can banker for money and received II.
Many or these issues were brought
out below par to stimulate interest by
reason OF the high rate of return.
Practically all issues were safeguard
ed by sinking fund features and have
Deen operative In this respect for
soma years. Thus the first 500 600. :
600 French 79 per cent 20-ye<sr ex-
ternal gold bonds issued in 1924 pr1o-
vded for $9.000,000 per annum sink.
ing fund for the first five years In
monthly installments of not less than
100000. The second loan provided
for $4,400,000 annual sinking fund
and. the third for $4,000. GOO annually.
The foreign bond market has been
very active of late, nor has there
been anything approaching extreme
nervousness among. holders, but in
ali cases, save for some few STRONG
Spots, quotations are considerably
lower than when marketed.
Must Be Renewed.
AT the present rate Of recovery in
france 1t would appear that it would
De Impossible for France to meet her
external loans to America when they
SAANA tAA1I LILCy VIII nave IN
De renewed, all Of which will he easv
of accomplishment provided earnas,
Efforts are made by France to pa,
into position to accept the Inevitable
quit plants against America. and pe,
back on her feet.
That there is such a demand FL,
these bonds that they hold so wei
seems to be the most encourapine
sign of the day.
Continental Europe is Staggering
and until the step has changed from
Wobole to firm footing the con.
sentative man will keep his resources
well In hand. ee9
The Home Market.
A year ago at this time the local
STOCK market presented quite an ami.
mated appearance, even though II
should nave been the dullest season
OF the year, according to precedent
BANK shares furnished the medi,no
OF the summer revival and the sr,,,-+
was suficient to carry the activitr
through into the Fall and Winter
High prices were established on man
issues OF both national banks' ana
trust companies shares unde,. A.
leadership of Riggs National on its
,narch from $3.50 or around there -
its present high figure. -
Wnlle the let-up in trading in ba
STOCKS did not develop until the wiz
Ter was nearing its end, the stopna 90
OF buying was complete and has 81
remained during the greater part ~
the Spring and all of the Summer
to date.
But 1t has not been attended with
any pressure to lfquidate, holders moi
being inclined to press shares to q
sale. Despite this fact there has beer
considerable more or less nominal loss
in the current prices, amounting in
some instances to % points and ever
more.
Banks have enjoyed another pros
porous year despite the abundance
Of money and rates have been uni
fornly well maintained.
Conditions have been somewhat
helped by the improved status OF
LIanston, under the new MANAGEMENT
reduced salaries, the introduction oil
modern business methods, and also by
the well sustained demand for Wash
ington Gas, on the theory that the
Utility Commission will permit revalu
alton. which of necessity will give
the corporation an opportunity tC
charge higher prices for its product
All other shares have been de
cidedly quiet. the making of quota
tons with each days call being list
less and more or less indifferent, but
without sign of weakness in the list
Financial Highligh
Brought Out i'm I