y loan floated in
America since the war which is dedicated to construction instead of
destruction. The proceeds are to be used to reimburse the City of Paris
for expenditures in building hospitals and making other necessary
humanitarian improvements and to provide a sinking fund to meet similar
disbursements. 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. Hence the possibility
of profit when francs return to normal is large.

The National French Loan was sold to American investors at an exchange
rate of 5.90, which means that every dollar you employ gives you a
principal of 5.90 francs. On this basis the price for the security
issued at a par of 100 would be 871/2, which would make the direct
yield over 5.70 per cent. Should exchange return to normal, the
subscription price would be equivalent to 751/2, which would make the
direct yield over 6-5/8 per cent.

Translating this loan into terms of money, you find that for every
$14.83 you invest you get 100 francs cap