New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-12
CHECK
ASSURES CITY LOAN
Bankers Help Situation by
Taking 9S1a Per Cent
of New Notes.
PLAN SUITS MAYOR;
OTTAWA GETS GOLD
First Shipment TO England's
Depository in Canada VIII
Be Made Monday.

Up. Morgan g. Co. and Kuhn. Loeb
l. Co.. AS syndicate managers late yen
terday afternoon turned over 10 tl,y
Chamberlain Bruere a check for SIOO'-
168, 1857, the Sl66,687 representing the
intcref. from September J, AMI the
city's bond loan Of $1O0,000,OOO became
an assured fact.
The Board Of Estimate at special
meeting yesterday approved unani'
mously the proposed changes IN the
method of paying for permanent I'M
provements, which were part OF the
agreement with the bankers who are to
furnish Sl00000000 10 pay the Guys
foreign obligations.
Representative OF a number OF tax
payers associations were present and
some Of them protested against the city
permitting the bankers to dictate the
financial policy Of the city. Most or
them agreed, however, that the best
possible bargain had been made. Ben
jamin C. Marsh suggested that the
money be obtained by putting tax
on the salaries Of city employees rang
ing between $4,000 and $4,000 on tn"
ground that they we're exempt from
the federal income tax.
Mayor Is Satisfied.
Mayor Mitchell said that while lie dis
liked to have TO pay per cent interest
on the loan ne believed the best posi-
BILE terms had been obtained. City
Chamberlain RTuere went to Washing
ton TO see what could be done, but
found that the government would not
release any Of its gold reserve to aid
the city.
"ControilCr PrendergGst a. the chief
financial officer Of the city has done
everything in his power to get the hes;
possible terms for the city, said the
Mayor. "The resulting financial plan
is the best that can be devised, ] be
lieve. ] do not think that i: will in
crease the tax rate next year
j. was true, the Mayor said. il would
cost the city more for It's loans be-
cause they had been made abroad but
that was due entirely 10 the war. lie
added:
"For The city % have defautcd on
its obligations WOULD have done more
than anything else to bring about n
panic and would have ruined the city's
credit abroad"
/. was necessary Tor the city to act
quickly, as $4,000, OOO Of the obligations
are due on Monday. Sl.5nO,OOO OIL Tues
day. 100000 on Wednesday and So -
100000 on THURSDAY.
Gold 10 60 10 Ottawa.
Representatives o. u; out 81 tie ~
banks and trust companies in the CITY
appeared at the Offices Of J. =. Morgan
& Co. Yesterday and paid down their
subscriptions 70 tn" city's 100000 00
note issue, thus irsuriny the success
of the plan 20 meet the city's foreign
Indebtedness. on Monday the first ship
ment of gold will be made By the sym
dictate managers 10 Ottawa, where the
Bank of England has a depOsitary.
Altogether the banks took S9S.Cl4, geo
of the notes, leaving 81 ,3S6,OOO for the
underwriters T. Morgan & co. and
Kuhn. Loeb & Co. To eSpCdite the sale
Of the notes Alexander Trough, Deputy
Controller. and ii. p. Walsh, acting for
the City Chamberlain, opened tempo
Tary quarters in the Morgan Offices. At
the close Of the day Ii. 2. Dawson, OF
the Morgan firm, Said:
; 81 consider it a great thing that any
body should have been able to raise
Sl00,000.000 in times Of stress like
these. Success was due entirely to the
patriotism Of the banks of the city, not
q singl. one cf which really wanted the
| notes IN the IrSt instance.
1t has not yet been determined how
much gold will be sent to Ottawa, but
the number Of promises that have been
received from European holders Of the
maturing warrants to take the new
notes instead Of cash has led to the be-
lief on the part Of some OF the under
writing syndicate tina. something less
than I5,000000 in all will be REQUIRED
instead Of the $S0,000,000 maXimu-l
provided for in the agreement with the
banks. The amount sent daily will de-
pen! largely upon what the express
companies are willing to handle at any
given time.
Banks Help Pay Debt.
The gold, or exchange, that banks #
this city furnish for their subscriptions
to the new notes will be accounted part
of their contribution to the fund of
Sl50,000,0O0 which it has been proposed
to the Federal Reserve Board to raise
among the banks Of the country for
paying the foreign debts of the United
states Whether. in case the plan goes
through at Washington, they will be
obliged to furnish more can only be
known when L il seen how many of the
city's maturing warrants cannot be re-
neyed abroad and must be paid i'm gold
II is thought, however, that because
of the increasingly easier discount
rates in London and the attractive rate
Of interest the notes bear they
will be eagerly sought az investments
abroad. Their appeal to investors in
this country was shown yesterday by
the number of bids for the notes sent
to various of the subscribing banks
from Out-of-town institutions and indi-
vidualy.
Foreign exchange rates were UNI
changed yesterday, though a plan for
increasing the supply OF exchange was
put into operation for the first time.
This vas for the New York banks to
advance 20 per Gel Of the price Of Il
shipment Of cotton to the shipper on
his draft drawn on the buyers agent
whel. the draft was accompanied by
bills OF ladine and other documents.
When the cotton arrived in London and
was paid for the bankers here would
pay W their differences to the shipper
and they would have a credit in London
upon which they could draw exchanL D..
In most cases the edit would be ava -
able about thirty days after the cotton
left the United States. More than
$1,000, 900 worth Of cotton was sold yes
terday under this plan, which was start
ed By banker in Galveston.
FIRE RECORD.