Amid the incessant hate and passion of war it is
pleasant to find this back water of cooling relief.
Like most of the foreign issues made during the war it follows the
highly intelligent European practice of putting out loans in small
denominations so as to be within the reach of the great mass of the
people. These bonds may be had in multiples of $100 and upward. The
Government of France has agreed to permit the exportation of sufficient
gold to permit the payment of principal and interest in the yellow metal
in New York. The loan--the only external one of the City of Paris--was
brought out at 983/4 and interest, which would make an investment of
6.30 per cent. In addition to this yield as an investment there is the
possibility of profit in exchange in view of the option to collect
principal and interest at the rate of 5.50 francs per dollar instead of
the normal rate of exchange before the war.
This statement of possible exchange profits leads us to one of the
conspicuous features of the latest National French Loan, which although
internal in form has been put within the ken of the American investor.
Fully to comprehend it you must know that in ordinary times a dollar in
American money is worth 5.18 francs. On account of the dislocation in
foreign exchange the value of a dollar in French money has risen to
approximately 5.85 francs. Therefore when you buy a French security in
terms of francs for American dollars you get a great deal more for your
money than you would have received before the war.
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