The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-05
EXCHANGE WEAKER.
NEW DROP FEARED
Sterling Declines I 10 Cent,
in POund-BrOkers Flooded
With Bills.
BACHE IDEA OFFERED

Sterling exchange vas slightly weaker
yesterday. Prices for bills on London
receded ~ cents In the pound. At IN.
close of the market last night foreign
exchange brokers said that they were
being flooded with bills and that they
were expecting another abrupt recession
in prices.
Members OF the firm OF J. ?. Morgan
& Co. refused to say when the British
and French financial representative
might he expected to arrive in this city.
They did not believe that any develoo-
ments would occur over the holiday.
Sterling exchange closed last night A,
4.66 for demand and 4.s7 for cables
This compares with 4.67i2 for demand
and 1854 for cables on Friday. Francs
were easier, In sympathy with sterling
selling down to SOS for checks and 81
for cables, against a previous close Of
5.9l for checks and 500 for cables
Marks advanced to 81 for sight drafts
nd SIN for cables. On Friday they
we're quoted at S0% and SOh respec.
lively. Italian lire remained unchanged
II 6I3 Austrian kronen held at IA IS.
Rubles were Arm, closing at prices rang.
ing from sax 10 3th. agsins: 81. j..
Friday.
J. s Baohe & CO suggest that a sou.
ton or the foreign exchange problem
might he reached through the pa NJ
= loan which would be I 5I-ely c--,.
mercial proposition secured nv hu,'-,.s
assets. The weekly circular ~ me Arm
In stating the plan in detail saws:
'1hfG FAtIlI hA a,ylY,EItQA-I 49,
Bank OF England. the Bank Of France
and the Imperial Bank of Russia is7Ied
their obligations in one, two and thrc.
year notes. payable In dollars, FOR thu
aggregate amount decided upon these
notes could be guaranteed by the re.
speCtive Governments.
Some Government tai author zatlon,
both for the banks and for the Govern.
ments. might be required, but these could
be easily obtained.
The history Of commercial banks
show that they survive all disasters ~
their native countries. because their as
sets are mainly the obligations ~ IN.
I dividuals depending upon individual =.
fort TO make them good. irrespective ~
national fortune. Ii would be good bIs'.
ness for these banks to conduct such an
operation. because IL is a business opera.
tlon facilitating the completing OF hus'.
ness contracts. The three banks named
might decide TO have other large banks
In their immediate groups, like the banks
In Paris and London. join them in N.
obligation.
"Thls would create a commercial m.
llga ion which should he eagerly sought
by Investors TN this country We need
some such large loan to absorb M
steadily Increasing funds here Since M
first " January the balance OF foreign
trade has turned over to us nearly
/ billion dollars Of rev mouey which 4
already seeking some channel TO secure
even a small rate Of interest
we have got 70 nance our fore'gr
trade or see Il dislstrouslv curtal'ed !
Is al, We have In this country 70 A.
rend upo' for prosperity. Wire ont NJ
for en- orders and the country voul'
droo into distressing conditions.
"1r We wish to become a cret''o
country We must show the requ's'',
qualifications and the capabilities TIL
bus ness of a creditor country Is to e."
credit 10 other countries on good 50
cur'tv.
"Tha unusual feature Of such a lar
foreign loan as IL proposed Is that ~
proceeds would all be spent IN I'M
country