French rentes have one of the largest markets, cash or time, existing: The buying or selling of hundreds of thousands of rentes can be done in one bourse with a wonderful facility and without producing any extended change in the market. The buyer is sure to find a seller and the seller a buyer.

A less number of temporary investments are made in French than in English securities, for the particular reason that the French rentes appear more speculative, and as such are exposed to a greater number of and more sudden movements. A French capitalist having funds disposable for two or three months will buy 'bons' of the Treasury to mature, in two or three months, will discount some commercial stock, or will deposit the funds in an establishment of French credit, and be content with a trifling interest.

'French rentes are sustained by millions of those depositing small sums in the savings banks—minors, the disabled, married women, insurance societies, mutualists, and the millions of middle classes, countrymen, shopkeepers, and merchants disposing of some hundreds or thousands of francs, all of them, in preference to anything else, investing in the security and tranquility of French 3 per cents. No country in the world possesses such a financial democracy. This democracy, which imprudent legislators too often alarm, has the respect and grati

tude of everyone. It has furnished the necessary capital for

the war ransom, for the recuperation of the country, and for improvements in time of peace. Freedom of territory and the safety and restoration of the country is found in the legendary 'woolen stocking.'

"In Germany there is little speculation in state securities. When German or Prussian loans are effected the banks, at the moment of emission, intervene to facilitate the sale and classification, after which they do nothing more. In Germany, contrary to the conditions in England and France, there are no obligatory investments in stock, such as dowries or deposits of guardians. German savings-banks are not compelled, as in France, to invest in state securities.

..

Germany has not a great number of small capitalists investing their savings in rentes: If it existed its strength would be greatly diminished by the diversity of stocks amidst which German investors would have to choose. It is not probable that a Saxon or a Bavarian buys Prussian 3 per cents or the 3 per cents of Wurttemberg in preference to the Saxon or Bavarian 3's: On the contrary, an Englishman or Frenchman would buy 2.5 consols or 3 per cents perpetual, whatever might be the county, village, or department in which he lived."

In support of his theory M. Neymarck cites other countries. His conclusions are summarized in the following table:

"These figures justify the financial rules and principles already established for Great Britain, France and Germany. If the debt per capita were an exact criterion the Swedish funds should be worth more than all the others, after which would follow the Danish, Norwegian, Swiss, Belgian and Dutch, German, English, French. On the contrary, the English, Belgian and French securities are more valuable, after which come the Dutch, Swedish and Swiss, with Danish and Norwegian securities at the bottom."

Government Bonds, Theory of Credit Basis of.-M. Neymarck, the French economist's, theory of credit basis is that the credit of government securities depends upon the following factors:

(1) To be master of the market of its own securities.

(2) To contract no foreign loans, unless absolutely necessary; to give preference to interior loans.

(3) To have for its public securities home buyers, automatically, by their purchases, upholding the credit of the country in which they have placed their confidence.

(4) To keep account of the productivity of other nations.
(5) To keep account of the amount of their economy.
(6) To see that the public funds are well administered.

In his current discussion, the author takes up the securities of Italy, Austria-Hungary, Russia, Roumania, Spain, Portugal, Bulgaria, Servia, Greece, and Turkey. The figures for these countries are tabulated as follows:

In summarizing the figures contained in this study, the author classifies the countries as follows:

In regard to this classification, he says: "The juxtaposition shows this singularity: Bulgaria has the least 'per capita' debt and France the greatest, after which come Portugal, Spain, Italy, England, Netherlands, Belgium, etc. If the 'per capita' argument were of any value, French, English, and Bulgārian

securities should be quoted the lowest, while those of Servia, Turkey, and Roumania would be the highest. This shows how ridiculous is the 'per capita' argument. It is a legend which the adversaries of our credit should renounce.'

In concluding his study, the author pays a glowing tribute to the financial strength of his own country, from which we quote the following paragraph:

'Since the war the annual savings of France have increased year by year; they have firmly supported the weight of the budget, which-$386,000,000 before the war-passed to $694,800,000 in 1905, exclusive of the expenses of the communes and departments. The credit of the State rests upon the honesty, loyalty, and fidelity of the country, and of the government itself to fulfill its engagements, and in this respect the nation is inferior to none. The French 'rente' is, as we have often said, the signature of France, and no one among us, whatever his political faith, will ever allow it to be protested. Our country owes only itself. It has transferred none of its resources, none of its property, railroads, tobacco, or forests, etc.; it has pawned none of its belongings. From the point of view of capital, it is the debtor of no foreign country. It has supplied funds to the whole world. All borrowing countries turn toward its financial market and its annually increasing savings. According to the appropriate expression of the Governor of the Bank of France, in his annual report for 1902, 'France is the banker of the world.''

Government Bonds, United States.-Coupon bonds.—United States Government bonds are issued in two forms: (1) coupon and (2) registered. Coupon bonds are usually preferred by individual investors and those who buy to hold for short periods. In buying coupon bonds, it is essential that the buyer should command facilities for the safe preservation of his bonds. Coupon bonds are payable to bearer, and on sale pass by delivery without endorsement. Should coupon bonds be lost, the Government does not undertake to protect the actual holder. The bearer of the bonds only is recognized. Registered bonds are in demand and preferred by buyers who intend to hold them indefinitely and for long periods. Coupon bonds can at any time be converted into registered bonds of the same loan issue, at the Treasury Department. The law does not authorize the conversion of registered into coupon bonds. Exchanges of this kind can be effected in the open market, by the payment of a slight premium. The person transmitting coupon bonds to be converted into registered bonds, must pay the express charges; but there are no other charges.

Registered bonds.-In the three following respects registered bonds are distinguished from coupon bonds: (1) they have inscribed or expressed upon their face the names of the persons who own them, designated payees; (2) they are payable only to such payees or their assigns; and (3) the property or ownership therein can be transferred only by assignment. For the purpose of assignment forms are printed on the backs of the bonds, together with directions to be followed in the execution of assignments. In the Treasury Department a ledger account is opened with each holder of one or more registered bonds, and this bond or lot of bonds is described therein. All transfers that are recognized by the Government must be made upon the loan books in the office of the Register of the Treasury. Should registered bonds be lost or stolen, payment thereon may be stopped by notifying the Treasury Department.

Assignment of bonds.-The formal directions printed on the backs of the bonds should be carefully followed when assignments are executed. The name of the assignee should be written plainly in the space designated for that purpose, and assignments should be dated and properly acknowledged. Should it be your intention to divide a single bond among two persons or more, their names and the amount to each should be specified in the assignment. Should it be your intention to assign only a part of a bond, a new issue for the remainder will be made to you: Provided, however, that the amount assigned shall correspond with one or more of the denominations in which the bonds are issued.

Assignment in blank.-Registered bonds are often assigned in blank, but when this is done, the owner should remember that such assignment makes them payable to bearer and renders them available to any holder. Put in another way, an assignment in blank means that the title to the bonds passes by delivery. Do not resort to a detached assignment unless the blank form of assignment printed on the bond shall have been already used; and then only when there is not sufficient space on the back of the bond for a second assignment.

Method of assigning.—The payee, or owner of the bond, should sign his name to the assignment as the name is written on the face of the bond. Should the bond be issued to a firm, the assignment must be subscribed in the name of the firm by a member who has authority to sign for the firm. The officer witnessing this signature must be satisfied with the authority offered. If the bond is issued to joint owners, cotrustees, executors, administrators, or guardians, each person must sign for himself.

Assignment by a corporation.—If to a corporation or company,