Glorified I. O. U.'s

Money lenders to sovereign States are the firm of Kreuger & Toll, financing company of "The Swedish Match Trust."

Three years ago they helped to stabilize the French franc by letting Prime Minister Raymond Poincare have 1,875,000,000 francs ($75,000,000). He let them have as security, as glorified I. O. U.'s, a French Treasury bond issue. In the polite language of financiers the Swedes "bought"' this paper at $93 1/2 per bond.

Last week the new and dynamic Prime Minister of France, M. Andre ("L'Americain") Tardieu completed arrangements to buy back the French I. O. U.'s from the Swedes for $103 1/2--a profit to the Match Trust of only ten points, only $7,500,000.

Along with its small profit, however, the Trust got a 20-year concession to do match business in France under the monopoly law excluding other foreign matchmakers. This profit will be tremendous.

Stockholders of Swedish Match were told last week not to worry about what the company will do with the $75,000,000 to be thrown back on its hands by the French Treasury between now and June

30-1930.

Managing Director Ivar Kreuger ot

Swedish Match calmed fears by announcing that he had up his sleeve ways to keep this money busy earning 5%, pointed out that the money-lending Match Trust now has $315,000,000 out on I. O. U.'s including $125,000,000 to Germany with the usual string of a match concession attached.

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