New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-11-01
EUROPEAN LOANS
ARE CRITICISED
May Delay Reopening of Stock
EXchange-Help to Limit
Supply of Drafts.

Reports that Russia and Germany
would follow the example Of France
and negotiate loans here were received
by local bankers yesterday with mixed
feelings. There was n good deal Of
criticism in the financial district, espe-
cially among institutions which are
large dealers in exchange, that these
loans to the belhgerents made more
difficult the settlement of the interna-
tional financial situation and in a
measure tended TO postpone the re-
opening Of the New York Stock EX-
change and the restoration of active
business in Wall Street.
Negotiations toward the establish
ment Of a Russian credit in New YORK
to pay for supplies purchased from
American exporters have gone so FAR
that an announcement may be made
by the bankers interested early this
week. The first transaction, II was
said yesterday, will be a loan TO pay
Tor the purchase of 10000 bales Of
cotton, while further expenditures Tor
American products may bring the 90
tai up TO S10.000,000 an amount equal
to the banking credit extended to the
French government by the National
City Bank.
Some of those who felt no satisfac-
tion in learning that France had been
able to borrow on her short term Sc
curities S10,0OO,000. all of which was
TO be spent within this country, said
that the expenditures which France
will make here for war materials, etc,
would have been made anyway, and
that in the ordinary course of affairs
they would have created an equlva-
lent amount of exchange. This Sl0,-
100000 of exchange could have been
used 10 reduce the international bal
ance against the United States or II
would have been partial Offset FOR
the American securities, with which,
il has been prophesied, Europe VII
food New York as soon as the Stock
Exchange is opened. As 1t was, one
chance for increasing the supply OF
exchange was done away with, and
every subsequent loan increased Amer
ica's handicap in her international
financing.
There was some question whether
Germany would make a formal loan,
like that made by France. For some
time past German exchange has been
al a consi derable discount, and one in
ternational banking house has been
credited with selling in the last few
weeks alone about 25,0G0000 marks
an indication, in the opinion of OK
change experts, that Germany had es-
tablished a substantial credit balance
with this firm, against which its agents
in this country might draw for pur-
chases of various kinds of supplies.
Similar arrangements have been made
by other countries, including Russia,
England, Greece, Turkey and Servla.
Yesterdays sterling market was
comparatively quiet. Canadian banks
were buyers, though until fairly re-
Gently they furnished a considerable
part of the grain bills offered here.
Canadian funds, in evidence Of the
change that has come over the situa-
ton, were quoted at a discount of l-l6
Of per cent.
Demand sterling, for which there
was no great demand in the absence
Of any steamer until Wednesday,
closed at 4909s and cables at 4911s
the latter being sought because of the
ending of the English moratorium on
November 4. Franc cables sold at
5.131z and checks at 5.14. Mark
cables were quoted at 1884 and checks
at $685..