New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-18
FINANCIAL RECORD
HERE and ABROAD
Foreign Exchange Lower
To Urge Necessity
of Gold Pact.

Payment to European holders Of New
York City's obligations is aiding the
gradual relaxing of exchange rates
here. Demand sterling yesterday was
around 3 cents lower at under 4.95,
where on Saturday it had stood at 499.
in Montreal the abnormal exchange
rate against this city of per cent,
which had existed for weeks because
Of our refusal to ship gold, dropped to
the customary low figure. Foreign
holders of the maturing city warrants
are arranging TO take the new per
cent issue in large volume and indie
pendent bids attracted by the high
yield have been received from abroad
in an encouraging number. 1t is hoped
to distribute a considerable proportion
of the new obligations not taken by the
banks themselves in other cities Of this
country, so that payment will mean
shipment of currency here. The need
of a common gold furd for the coun-
try's needs will, it is understood, again
be urged on the federal authorities to-
day.
In London the third offering of f15,-
OOO,O 900 in Treasury bills was more
than three times oversubscribed at an
average yield of q little under per
cent for the six months bills and 81
for the twelve. In spite of the great
appeal to British patriotism that TINS
issue makes, the difference between
such a return on investment and the
6 per cent of the New York City loan
should mean that London will find our
new issues particularly attractive. ne
ports from Germany had IT that only
one-fifth of the $250,00O,OOO German
war loan of per cent Treasury ponas
and government notes had been SUB
seribed for, and foreign, markets are no
longer open to Germany's requirements
The Bank of England reduced further
its rediscount obligations, the loan
item going more than 100000 lower
Reserve increased, the proportion 10
liability, at 21.l7, being more than
ner cent above the week before. bulllon
holdings were some 100000 better
though 100000 had been set aside as
reserve against emergency notes, ana
Yesterday the bank took in over ST.
200 600 in gold bars and American com.
The omen market discount rate is now
from 8 to ga per cent, but the oanK
continues it's minimum at b.
Here further passing OF dlyidennds
emphasized the changes that tne Eu
ropean crisis has brought about in our
already depressed industrial AFFAIRS;
The Crucible Steel Company followed
the example of the Republic Iron ana
Steel in deferring its quarterly dlvi-
dend on the preferred, with the ex-
planation that it was necessary TO pro-
fect its credits since stopping OF eN-
mort and foreign payments had peen
added to the depression OF domesllc
business. The international Harvester
CORPORATION. which handles the foreign
business of the old company, passed It's
dividend on the common, since " mas
Iaen impossible to collect large part
Of the money due abroad, and its ousl-
ness in the countries at war has pfac-
Grain prices in Chicago closed lower
detailed figures on our exports Tor Au-
Gust show shipments of breadstunas
5eeTlv s9.OOO,OO0 greater than IN 1873
and 50 far in September foreign tax
NOS have been unusually heavy. COT
ton last month was sent abroad to tne
vsIue of only a little over $l,OoO,OOO'
AGAINST more than Sl6,OOO,OOO iast year
int cotton bills are now coming ili.S
+be market here in some volume ana
exnort may be better than had Deeh
estimated.