The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1939-09-21

csseFss - - as&ra sttzN - tffH
Fsasasiaz - - 49, ~ stn.efsss
r~.eissaa -. gzrens~e se'~r~sss
ever - Assz sFssesn esastAs a
~Ns este ssfs4nsa sx<n 90 . p~&xs.
'sHns fsst4ax
nsyss Ah-e~s
sHss&srs LAYS ahxs q fee as~ks
sEa ihs rsszxA treasury - snrvsa
IN sgthars~ an nsfsFsng q A. I'm
pcfssns hcssd issss ~ fsarnsnsrs
p4fp1exs. he~asse thsrs sszs ~
sssysss A. thas iiEst. NJ Mas.
nesznsT ~ Mrnaslssoss q CO, An.
sheridan was stlu alive and. ss ca
prssscas osoessaans rF~sarsly pro-
toeed = Waite faoest in TIE farm
- = ne~ san far he Fvsnrh Re-
pshiir. Bai svsa NJ. Nannhss nssr
get ssaask Ard eeald f.nd 30 taksrs
anaong his o~n frsends
That The Menaeissohn failure
may have led 70 . first rate finsn-
eiAl scandal. had peace continued.
and perhaps % serious financial
embarrassment in Paris Il q sub
)ect Of discussion among the Nell-
informed here. A. an example ~
the stakes involved. private reports
Indicate THAT Belgian industry and
finance IL likely 10 lose some 100
ooo 600 francs in ihs Mendelssohn
bankruptcy.
Near Tight Spot
As an emergency measure the
National Bank was empowered to
treble It's advances 10 the treasury.
Consequently. had peace contin-
ued, or q condition Of white war.
II Is entirely possible that the Dalai
der government might have found
itself in a tight spot. faced with a
financial scandal Of the first mag
nitude. 2.l0o, 900. 900 francs three
times the Belgian figure II cor
rect would not be far from annual
naval expenditures. War has d.
verted peoples attention to other
fields; out of sheer patriotism gov
eminent loans can now be placed
internally; fractional disputes are
forgotten.
Sterling Drops
Britain's financial difficulties are
more openly known than are those
OF her ally. They became sharply
visible 10 even the most uinitiated
when the pound sterling recently
dropped 10 s4.o3 from a quotation
of more than S+.eo or 30 year ago.
The authorities simply could not
stop the wholesale flight Of capital
causing the decline. This. ineiden-
tally, still continues.
Regulations, in the form of
gentleman's agreement rather than
a law, prohibited English banks
from promoting the export Of
capital. New York financial men
know that in spite Of this edict
certain London institutions have
continued TO execute customers
orders for the purchase OF Ameri-
can equities, stating that II wasn't
their own, but the clients money,
over which they had no control.
Disclosures Near
Moreover, the international cur
rency "arbitrageur." of whom Lon
don has many. profits from every
fluctuation in the world market.
Strictly speaking, an "arbitrageur"
is one who makes it his profession
to take advantage of the varying
prices and rates ruling for securi-
ties, commodities or currencies at
different centers.
simultaneously, or nearly so, he
buys where it is cheapest and sells
wherever quotations are highest.
It's an old British customi
In addition, Great Britain was
again on the brink of lot of very
unpleasant disclosures just before
lnt VI
Officials Accused
Insiders speak Of grave ACCUSE
tons against officials responsible
for the "Thetis" submarine disas-
ter, for the Ira. bombings. for
the breakdown of civilian air trans
portation about a month ago, and
for the continuous pressure brought
against sterling all over the world.
Several incidents threatened to
develop into near public scandals.
Again, war and the law Of self
preservation has diverted peoples
attention. Export Of capital can
now be stopped. Privately held
funds at home and abroad can be
conscripted for the national well
fare. fractional disputes are for
gotten in the nations emergency.
Bankers Gloomy
Aside from these specific angles,
bankers here, as intimated above,
are very gloomy over the prospect
of what price glory" under any
of the labels and then what" On
the disrupted economic system of
Europe, the impact of modern war
will leave its mark even more
deeply than did the last world war.
Particularly so if hostilities
should drag on over a period Of
years. The victor will be unable to
extract anything from the van
pushed by that time. Wholesale