New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-12-05
CITY SYNDICATE
ENDING ITS WORK
Banks Pay Last Part ofEx-
change Subscription
N. Y. Debts Met.

With the call for the eleventh install
ment of subscriptions yesterday, the
work Of the New York City note syn
dicate was practically ended. Clearing
House funds were asked for from the
subscribing banks, and payment Of the
S1O.7l6,S50 was made in full before the
close Of business. The syndicate man
ayers, J. 2. Morgan & Co. and Kuhn,
Loeb & Co., have now only TO make
actual payment Of the revenue war
rants when they fall due in London
and Paris in the middle Of this month
and early in January. For that the
exchange is in hand, and the rest Is
only clerical work.
OF the Ss0,243,940 collected by the
syndicate managers, S35,264,636 was
paid in gold, S4O,519,013 in exchange
and 81 400 300 in domestic funds. when
the arrangement was made with the
city in the middle Of August for
banking syndicate TO underwrite new
issue Of S100,000,000 Of New York's 8
per cent notes the amount Of revenue
warrants in London and Paris to ma
ture within the ensuing five months
was roughly equivalent (at then exist
ing exchange rates. TO about SS2,62Z,-
600. There was fl3,515,OOO worth TO
mature in London and 75,O55,OOO
francs worth in Paris.
The greater part Of both the sterling
and the franc maturities was pald
abroad, but some Of the warrants were
presented in this city, relieving the
syndicate managers from the necessity
Of providing exchange for so much. 1t
was said yesterday that the number oil
sterling notes paid off here was rela-,
lively small and that the number OF
franc notes was something under one
third Of the whole amount, or less than
$4,000 francs in Paris.
After this months maturities are all
cared for there will have to be met
only 100000 in London and about 49,
$4,000 francs in London.
Back in August the city's obligations
abroad made one of the biggest prob
lens that bankers anxious to uphold
the honor and commercial credit of the
United States had TO reckon with. Ex-
change was at prohibtive prices, and
there was not the slightest chance,
even if the city had been willing to
nav as high as So 80 or Sc the pound
sterling, that it would have been able
20 secure enough for its requirements.
Only the formation of an underwriting
syndicate by ]. p. Morgan e. Co. and
Kuhn, Loeb & Co, with 124 banks and
trust companies as participants, to take
over new city note issue of 100000
900 saved the day.
Following the arrangement for pay
ment Of the city obligations, exchange
rates began TO decline. The organiza-
ton of gold pool Of 100,00O.O0O sup
nlemented the work OF the city note
syndicate by making exchange aces
sible to mercantile and other debtors
"a foreign houses. Action taken by
the British government and the London
discount houses gave still more rellel
and eventually brought exchange prices
below the theoretical gold export point
But il was the city note underwriting
said bankers yesterday. that was the
entering wedge Of the Improvement.
Yesterday sterling exchange was
down to ass for demand and 4.SS>s
for cables. Francs, too, were compare
lively cheap, at 5.12% for cables and
5.12L for checks, though these prices
showed q premium over parity. Marks,
which have lately been hardening. ad-
vanced to S7ss for demand and S7$4 for
cables. II was said in the exchange
market that the higher price of marks
was due in some measure to subscrlp-
tions here TO the German war loan
With marks where they are, loyal Ger
mans and others who believe that Ger
many will win the war see handsome
profit in buying the war issues at
practically 10 per cent discount.