New-York tribune., 1914-11-30
WAR LOAN FINDS
100000 INVESTORS
British Issue of f350,0O0,-
900 Observation-Disclosures
count Rates Drop.
lBy cabl. to Tie T.lbune.I

London, Nov. 29.-The outstanding
fact IN the financial situation last week
was the oversuOscription Of the war
loan, which amounted to the immense
sum Of e350,0Q0,000. The Chancellor Of
the Exchequer was able to make the
gratifying announcement that nearly
100000 individual investors applied for
allotments.
In 1900 the loan for the Boer War
was subscribed ten times over, but II
was only f30,000,O00, which is very
different thing from the present loan.
That the present loan, asked when Eng
land is engaged in n world war, should
be oversubscribed must be accounted a
great national feat.
At first, when the size Of the loan
was announced, there was apprehen-
sion that the result might be a deple-
tion of deposits in joint stock banks
and consequent unfavoTable reaction
on facilities for financing trade.
Such apprehensions are allied IN
questionably with large transfers from
Joint stock banks to the Bank Of Eng
land, but these are spread evenly over
period OF five months, so that the
process Is gradual. Also, while the
government IS receiving large pay
ments it will be making heavy dis
bursements. The Chancellor estimates
thft four-ffths of the expenditures
will be made at home, so that money
will thus be returning constantly to
the joint stock banks.
There is the third consideration that
the Bank Of England announced, that II
would lend on war stock up 10 the full
amount of the issue price at per cent
below the bank rate. This will ere
ate further credits at the banks, and
the net result may be, therefore, that
after allowing time for temporary
alteration and readjustment money will
be easier than before.
In anticipation of shortness in the
open market on account Of payments
into the Bank of England by appli-
cants for the war loan there was some
tendency for discounts TO harden, but
when the government disbursements
more than Offset the payments rates
dropped again and the week closed with
IA per cent for overnight loans, Ia
for a week, 2& for sixty days, 3& for
three months. 3K for four months and
3& for six months.
The Bank of England is In a very
strong position, with stock Of gold
Of f72,OOO,OOO and reserve of $685.
100000. The bank has now in circu-
lation notes amounting TO e35,50O,OOO,
while this is supplemented by the is
sue Of notes on government credit of
s34 10000. The government issued
total of G57, $4,000, but 23,5O0,00O
was cancelled. The Chancellor, mean
while, is accumulating a gold reserve
against the government issue by set
ting aside 100000 a week against
the issue, and now has reserve of
f13 100000, or practically 40 per cent.
At this rate he will soon be in posi-
tion TO withdraw the government notes
if he so desires. Paper currency is
increa ing in popularity, and may be
permanent.
On the other hand, that trade is
slowly recovering courage is indicated
by the export figures. Exports dropped
from f44,000000 to s24,000,000 be-
tween July and August. but the Octo-
Der returns showed an increase to f29,-
100000, and considering the great and
important markets nullifed by the war
and England's own part in the con-
fict this is highly satisfactory show
| ing of energy and enterprise.