The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-15
FINANCIAL NEWS
AND COMMENT
Wall Street Engages in Debate
Over French Loan PropO-
sition.
A CONFLICT OF OPINION
Suggestion Of Bank Notes as
Reserve Money Seems to
Fall Flat.

Discussion of the improving prospect Tor
m Increasing resumption OF activities in
tie international money market and for
releasing export trade from the various
embarsoes which have been laid On ship
ping tended yesterday in Wall Street to
encourage sentiment
A good deal of attention was paid TO
ore important conference held at the
Treasury Department In washington,
where views were exchanged by leading
Representatives OF the broad divisions OF
che country's economic enterprise. 1t was
confidently believed that from this con-
ference there would be an evolution OF
practical inca sures TO help supply shipping
6acIlities and that through gome form OF
Gov ,rnment insurance as well rs through
assistance 20 foreign exchange operations
she release Of the export trade from
its blockade would be promoted Conf
,lence was warranted by the very fact
Of tho conference itself n by nothing else.
r'he u,eeting was further evidence OF the
spirit OF cooperation and accommodation
which is uniting the country and was =
etrilSing symbol OF tho concert whioh 10
being established TO protect the common
interest.
Tho surgestion Of tentative ovsstures
for the notat,on Of French loan here.
placed A. yeneral report AZ about $780,
100000, provoked conflicts Of opinion. 4
statement from the Morgan arm ulade II
clear that no part Of the prooeods OF tho
loan, II the transaction were negodafed.
would leave the country In the form OF
cash. the funds being used to pay for the
purchases o. goods and commodities here
for French consumption. That certain ad-
vsntages woIld accrue from facilitating
foreign borrowings was obvioue.
On the orhe- hand opposing arguments
were readily put forward. The question
Of tho international political aspects OF
such loan was freely debated and WAS
admitted 20 be awkward. but Wall Street
REGARDED that less nNan the financial bear
.nss OF the loan. II is doubted in soma
quarters II at this time the country should
salNe payment in securities for exports OF
its goods II was said no he not exactly
the occa sion TO buy mortgages and the
idea OF those who held this view was that
me country needed moro than anything
elsA 10 acquire as rapidly as possible a
rash or liquid credit balance on interna-
,ional trade account which would enable
u TO discharge It's outstanding foreign
debts rapidly and thereafter TO take care
OF the further return of our securities
which Europe may be counted upon Il
mako in the future
All the indications we're that the
scheme for converting part OF the ma
tional bank reserves into bank notes wa
failing for lack OF support At tho same
time there were clearer signs that opinion
favored precisely such an employment a
reserves as IL called for IN a great erner
rency and Is sanctioned by the eoundes
traditions OF banking experience. II hai
not yet developed TO what extent any IN
vaslon Of reserves may become necessary
and II Is doubted II they will have to o'
materially reduced II. seems TO he tn
casa tho machinery Of internationa
finance IL being put into working orde'
again.
Advices from London reported q con
tinuat.on OF heavy dscounting by tn
Bank OF England and an increasing sup
ply OF cash In the London money mar
ket. with all the tokens pointing 10 pro
cresslve betterment Of conditions AZ tn
worlds financial centre in tho course o
the next few days. The dispatches re
ported tail; of an early reopening of tn
London Stock Exchange, but II was no
concluded hero that the Wall Street stoc'
market could he resumed immedatel,
after resumption IN London. one con
tingency which the local financial authori
ties are keeping In mind In the possbl
effect which might follow the outcom
of the FIRST great battle IN mo war.
o. the known movements OF money
wa estimated that the banks here hs
loss upward Of $4,000 cash this weel
hut the preliminary figures have bee
rather valueless OF late. There was agai
a fair market In foreign exchange 10
moderate amounts. with demand sterln
quoted at and above Ao5 and sterIin
cables about So II is interesting I
note that according 70 London advice
New York II practically the only centr
with which London has been able TO re
store financial relation. 80 far. The CO
real markets were weak, with wheat mall
f,r Pol - \ "a hnshS
Dun's sta tistic. OF bank clearings for III
country showed a decline OF more tina
% per cent. for the week, compared wit
she corresponding week last year. h,
the fall was overweighted by tho d.
crease for New York city.