Show FRANCE PAYS I HIGH INTEREST Meanwhile U S Has Too Much uch Money doney and andRate andRate andRate Rate Is Low BY fly WILLIAM BRID Special Spai European Eurol Copyright 1925 1926 by the Consolidated Consoli- Consoli Consolidated dated Press Association NEW YORI YORK April 11 After 11 three years absence the tho writer Europe for tor a brief visit to the United States finds many evidences that the country Is vastly more Interested In Europe and Its Ita problems than at any time since the armistice This Is no doubt largely duo due duoto duto to the realization which has been bee slow In coming that vital Amer- Amer AmerIcan American Amerlean Ican Interests depend upon the restoration of ot Europe to normal norms nn ThIs has reached h X business and agricultural Interests ot of tho the country at the time of his last visit In 1921 and 19 1922 but what Is significant today to- to today today day Is that the tho financial corn com community which means not only ih the bankers but the millions of ot small Investors are now beginning to appreciate how much the question means to thorn them In hard dollars and cents What That hat has hu happened Is that unrest un- un unrest unrest rest and fear abroad have h e not only deterred capital from flow flow- flowIng flowIng Ing Into European markets but that the current has Actually flowed in the tha opposite opp dIrection CAPITAL CAPITAL FLErs The saturated over American America money market Instead of ot having havinga It a foreign outlet for Its surplus g Investment funds has haB had to at ab- ab absorb absorb a vast amount of European capital which Is fleeing to who what Jt t t regards a safe sato haven The consequence Is that Interest rates have fallen and the sma small American Investor who could g get sate safe 7 and 8 per cent places now Is i Inclined to be con con con- contented contented tented with tour per cent and 1 In some cases less Meanwhile ot 01 course the opposite opposite site effect Is produced In Europe In France money Is practicallY unobtainable except at ruinous rates Conservative e banks are asking as much as 9 S per cent against the best beat security whIle the rate tor for loans carrying the the slightest speculative elements clement runs much higher INVESTOR I IN IX PLIGHT The flight of ot capital from France was provoked pro not EO so much mud by b fear tear of taxation or even of ot a 1 capital capital levy as aa by apprehension of a decline In the francs franc's ex exchange ex- ex exchange change value Remembering tha that the tho th French Investor has lost four four- fifths ot of his capital since 1919 In the decreased purchasing power of the franc and that eve even before Premier admission aba slon the other day It 11 was widely widel widely known that further Inflation I would be necessary It Is not dlf- dlf dif to see why Frenchmen are i anxious to place their funds 1 In countries where money is stable II M confession that his government had secretly and il- il illegally legally Inflated the currency con con- contains con tame the tho Implication that that th the the French government as has bee been generally suspected In Paris wa was speculating heavily In the ea ex- ex exchange change market A rise In the franc would hav have enabled the extra two billion francs to be repaid before any any any- anybody anybody body was the wiser but thi this hoped-for hoped rise did not occur ant and despite the desperate efforts o of the finance ministry the best that could be done was to hold the franc at the point whore where It has hasI stood for the last lut two months What the effort has ha cost ca can I only be surmised It is 15 certain however that th the French public C will have It If the tha situation Is to b bo be saved from becoming worse Heavy lIea vy as these sacrifices are one can be sure the tho no- no lion will make them courageous If It they Insure stability The flight of ot French capital Is not as some have bavo said Bald a flight t from taxation but a flight depreciation |