The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-10
MORGAN ON MONEY
ERRAND TO CAPITAL
Banker Will Discuss $50, OOO,-
600 Gold Pool With Re-
serve Board.
FOREIGN EXCHANGE RAISE
Call Rates Higher-8 Per Cent.
Demanded for New Loans
and Renewals.
FOREIGN EXCHANGE RAISE

II was announced yesterday that prac-
tically all Of the details OF the 500. 000.-
900 per cent city loan had been ar
ranged between the syndicate managers,
]. p. Morgan 4 Co, and Kuhn. Los 4
Co. and Comptroller william A. Prem
dergast Although the letters TO the
banks and trust companies in this city.
all OF which have asked to participate.
were sent out only on Tuesday night,
favorable replies have been received from
over 50 per cent. OF thu institutions. About
1870 banks and trust companies have been
asked to take part OF the loan on
pro rata basis Of their net deposits on
August 1.
The hope Is expressed that some Of the
holders OF the city's sSOOOO.OOO obliga-
tons In Europe will agree to take the new
notes in exchange for the old revenue
warrants, In view of the fact that they
bear high rate Of interest and mature
serially in one. two and three years.
In view of the fact. however that all
Europeans are eagerly seeking gold 1t is
not believed that a great part of the
old obligations will be exchanged for the
new. The city has to meet maturities
Of $4,000. 900. which fall due the latter
part Of the present month. and 1t is not
unlikely that this amount, or large
part Of 1t, will be shipped to the Bank Of
England depository in Canada.
Loral bank s ar- so re-. hat sceptical
as to whether 1t will be necessary to
raise the $780, 00O. 900 gold pool, which
has been favorably reported upon in
Washington by the Forgan committee to
pay our debts abroad. hut they neverthe-
less maintain that the psychological effect
OF such an operation will be great upon
the minds of persons and corporations in
Europe to which we indebted. 1t Is
maintained that, even though 1t may be
necessary to ship perhaps $25. 900, 600 OF
this gold to Canada 10 meet our obliga-
tions, the mere fact that this coun-
Try shows willingness and an ability
70 pay its debts will do much to reduce
the insistent demand that has come from
Europe that We pay in gold. None IT
this gold is to be used for the payment
Of New York city debts.
Morgan Goes to Washington.
J. =. Morgan left for Washington last
night to discuss with the Federal Reserve
Board the necessity for raising the $780,
900. 900 gold pool and certain features of
It's disposal. Mr.. Morgan before going
refused to comment on what recommends
ti0ns he will likely make to the authori-
ties in Washington.
Foreign exchange was somewhat higher
yesterday. Demand sterling. which closed
at ABS on Tuesday. was quoted at from
Assn to 4.s9 yesterday, while cables
ranged from 4,sss. to 5. as compared with
.c Tuesday. Franc cables were
quoted at Observation-Disclosures -----
Foreign exchange men reported that they
were still doing business with Paris and
that efforts had not been continued to
arrange basis of credit and acceptances
on Bordeaux. This was interpreted IN
tho financial district as an evidence that
brokers here had received notices from
the representatives in Paris that there
was no danger OF that cityis being be-
sieged at present, II at all.
The rise in exchange was generally at
tributed to the buying of exchange by
the banks against the payment OF the
city's maturities particularly those which
fall due this month. The fact that some
Of the Canadian bankers who have been
the heaviest offerers of exchange had
stopped manifesting a desire to sell, thus
lessening the supply in the market, also
had its effect in raising the rates.
sI,OOO,O 900 In Grain Bills.
Foreign exchange men reported a con-
OFuoIdoie sciIliib VI gram DllS yesterday
and said that at least 81 200. 900 worth
must have been purchased in the local
market. 1t was added that great deal
OF the grain being sent out from the
United States was going by way of Gal
weston. One banking institution alone
was reported to have purchased f147. 900
in grain bills. not a large amount under
normal conditions, but n good days bust
ness In times like these.
One or two banks quoted London dis
counts at 3& per cent. for prime double
name English acceptances. Some sixty
day sight cotton bills appeared and were
sold on confirmed credits the bankers
refusing to make any commitments %
cotton which had been sold around 10
cents the pound being refused when il
reached the other side and having TO dis.
pose OF 1t AT the prevailing prices. which
would entail loss of from cents to
az cents the pound The cotton bills were
sold on about per cent discount basis.
Call money rates were raised sharply
yesterday practically all the banks de
manding per cent for new loans and
renewals. Time money for four and five
months also loaned at per cent. and
there was a little offered for six months al
the same figure. Bankers and money
brokers said the reason for the rise in
the rates on call money is that II il
believed that many brokers are carving
larger balances than they need and the
banks want them to pay what they can
and liquidate what they are able without
loss or embarrassment TO themselves
NORFOLK AND WESTERN REPORT