Evening star., 1927-03-02
MEN AND MONEY
By M. S. RukeyseT.
tCopyright. 1877

Irrespective of political arrange
ments, Americans are becoming world
minded to an increasing extent.
Dollars are being exported without
regard to national boundary lines to
places that seem to offer the great
est return.
In the last two years the bull, or
| rising, markets in security prices in
Germany have been an outstanding
| feature of the world financial situa-
ton.
What country will be the next great
center of speculation?
The answer to this question is in
the future, but it is interesting that
numerous f1nanciers who have taken
profits on their Teuton speculations
are switching to French stocks.
Large quantities of equities in
French enterprises are being imported
to this country and to other lands
outside of France. incidentally, this
movement of securities provides
France with new capital in lieu Of
foreign loans, which are temporarily
interdicted in the London and New
York markets.
Paving Way for Revival.
A shrewd economist, who has studied
the French economic situation closely,
in conversation with me, said: France
has gone far toward placing it's finan-
cial house in order. The temporary
hard money depression has had the
effect of curtailing imports and domes-
tic production. AS result, the
French people have been using up
accumulated supplies, thus paving the
way for a business revival.
"Of all French equities, / prefer
bank stocks. The large banks during
the earlier shrinkage In the exchange
value of the franc protected them.
selves by keeping large balances
abroad in stable currencies. They are
now in position to recall those de-
posits and take advantage Of oppor-
tunitfes in domestic business. l also
like French electrical companies, and
also public utilities
Some of the large houses have agen-
oles abroad, searching for opportuni-
ties In various classes of French
stocks, including industrial issues.
Italy is also being closely watched by
foreign financial interests.
Having made interallied government
debt settlements with England and
the United States, Italy has access to
loans in New York and London. Con-
siderable Italian financing is now be.
ing arranged in the American market.
Germany is about two years ahead
OF France on the program back to
economic normalcy.
Italy Moving Likewise.
France and Italy are moving some.
what together. although subject to
widely varying problems.
Having emerged from the severe Ia
Dor troubles of last year, England is
making progress toward recovery, and
the trade outlook there Is more rose.
the signing Of the armistice.
Germany is initiating American bust.
ness more closely than any other Eu.
ropean country.
No other Old World nation has sent
more engineers to this country re-
Gently to study the technique OF mass
production than Germany.
The Germans were shrewd enough
to perceive that the American system
Of mass production rests on a base of
mass consumption.
Accordingly, Germany in recent
years has gone in for the American
system Of financing consumption
through installment plan schemes.
The New German System.
In Germany new elements have been
added to the scheme of financing con-
sumers. So.called consumers banks
have been organized. These banks lend
purchasing power to borrowers, who
receive a special form Of check book.
With this credit the purchaser may
buy from any Of the merchants COM
prised in the combination up to the
limit of the grant. The customer
usually makes a moderate cash pay
ment and pays the remainder in credit
checks. On presenting the check to
the credit institution the merchant re-
ceives within three days the full cash
amount less expenses for collection.
The merchant is thus relieved OF
financing cares, and the consumer is
indebted only to the finance company.
The consumers banks in Germany
play role similar to that Of the
American finance companies, who buy
the promissory notes of partial pay.
ment buyers of automobiles and other
products. However, the German sys-
tenn has made still easier the system
of buying now and paying later.
The German system Is expensive to
the consumer, who must pay about 20
per cent for the accommodations.