New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-29
DOLLARS, AND NOT
EXCHANGE, WANTED
Subscribers to City Note Issue
Surprised by the Notice
Talk of Protest.

Much 20 the surprise Of some of the
banks which subscribed TO the New
York City loan, the syndicate managers
directed them Yesterday to pay the
latest instalment of their subscrip-
lions in dollars, instead of in eX-
change or gold, which alone were
thought acceptable. The total collected
at this time was only 100000, divided
among about l25 institutions, so that
no single subscriber suffered greatly
through forehaudedness in buying eX-
change; nevertheless, few of them
Yesterday expressed their intention Of
protesting 70 the syndicate managers
against what they regarded as hard
ship. They declared that the terms Of
the subscription gave the managers no
right to demand anything hut gold or
exchange in payment Of their allot-
meut.
1t was inferred from the fact that
checks were asked for by the syndicate
managers that they had taken edvan-
tage of the recent break III demand
sterling 70 nearly 4.s9 to lay in a sup
ply. The ordinary members of the syn
dictate are permitted by the terms Of
the agreement TO turn in their pay
ments of exchange at the rate Of 400,
and in the case of previous instruments
many of them have preferred to make
payment in that form. even az q loss OF
from 3 10 5 cents a pound sterling, 70
giving up gold from their reserves and
lessening their loaning power. When
exchange dropped 10 4.S9ls they fore
saw an opportunity to make their
future payments Of instruments at
profit Now that pleasant prospect has
disappeared, and some of them find
themselves loaded up with exchange
that they have no use for. Hence their
desire to protest against the ruling by
the syndicate managers.
The feature of the exchange market
Yesterday was not so much the rally OF
demand sterling TO 4S9!s and OF cables
20 490$s as the strong demand for Ger
man exchange Checks were quoted at
SSs4 at the close of the day and cables
ut ss7s, and dealers said the demand
was not only urgent but broad. They
explained it as largely due TO the pay
ing Of finance bills. put out in July by
banking houses here with important
German connections. These bills have
Welded unexpected profits for their
drawers in that they are being paid of
az rate that could hardly have been
dreamed Of thee months ago. One
banker said yesterday that there had
been probably 25O,000,00O marks sold
in this country on finance bills before
the war broke out.
Because of the comparative cheap
ness of sterling exchange and the con-
sequence that IL is hardly profitable
now to send gold TO Canada, the dis
count on New York funds in Montreal
has gone back 10 normal
One Of the things which helped TO
break exchange rates was the great
credits which have been established
with q number Of banking houses here
lately. particularly on behalf Of the
French government. In the case OF one
private banking firm on Wall Street,
which often acts az the representative
of the Bank of France here, these
credits, established via London, are said
TO have amounted TO 100000. The eX-
change thus created was all disposed Of
within two days. In other cases credits
amounted to 100000 or 100000, many
institutions being chosen as banking
agents for France to draw upon in pay
ing for purchases OF materials and
manufactures here French exchange is
continually getting cheaper here, in
evidence of the increase IN the supply,
francs being quoted AT the close Of
business yesterday at J.l4 for cables
and 5.15 for checks.
There was withdrawn from the Sub
Treasury yesterday $4,000 for export
20 Canada