New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-06-28

obligations should be revised down.
ward. Railroad stocks owned abroad
amount 10 less than $s00,000 900 par
value and mortgage bonds TO around
1920, 000. 900. Sales In our market
of course, materially reduced the
totals given.
French Credit Grows.
Full details of the French credit
were still lacking when the week
closed. preliminary announcement hav-
ing been FASTENED by publication OF
the plan from the other side. Orig
inally intended TO include SS0,000OOO
Of our railroad bonds issued in francs
for sale TO French investors, the total
has been exceeded and will be what
ever amount can be collected. Our
bankers are putting no limit on what
they are ready TO lend. The bonds
will be lodged with the banking house
Of J. P. Morgan & Co. here and lend
ing institutions that extend accommo-
dation will, il is understood, receive
some form Of participation certificate.
Should Il be necessary after the year
the loan has TO run to sell the col
lateral or any part OF it, there Is ex-
pectation that through consent OF the
corporations whose securities are in
volyed it will be possible to change
their form so that they can be dealt
in on our exchanges
A surplus held by Clearing House
institutions on Saturday OF over Sle3,-
100000, which under present reserve
conditions can serve as basis for about
81 900, 100000 more of deposits, shows
how easily such accommodation can
be granted. Though sufficient Federal
taxes, due by July l, are being re-
ceived TO relieve the embarrassment
Of our national authorities, the local
Sub-Treasury for the week had net
balance against our banks OF less
than 100000. In this city large
proportion of Federal taxes, income,
corporation and the new war impost,
are met, and next week Will, judging
by last years experience, see heavier
payment.
Funds Easy Here; Up in London.
Nevertheless, the ease Of money was
not diminished last week by this loss
to the government, or by preparations
for July's corporate disbursements TO
bond and share holders. Call money
renewed at and 1s4 per cent, and
time loans were made at from pa to
Pr per cent for sixty days, and from
pa TO 8 for six months. In London
higher interest on the new govern
ment loan stiffened discount rates,
Thursdays Bank Of England return
with over 100000 lost in gold, and
the reserve proportion Ia per cent
lower at 1887 assisting in the proc
ess. At the end Of the week dis
count rate for short and three months
bills were AZ per cent, where under
3 had prevailed less than two weeks
before.
This higher return on funds in Lon
don, together with the greater selling
of securities for British account, was
followed by recovery in sterling eX-
change. London checks selling as high
as S4.77 ZIG for sovereign against
low of S4.76 3-16 the week before.
French exchange, however, failed to
respond 10 the news OF the credit ar
rangement, making new low records
here, while in Paris London exchange
went higher. Here imports OF gold
were interrupted for few days, a
little over $7,5OOOOO being sent US
from Canada during the week.
The higher rate for government
borrowing for war purpose showed its
effect in lowered prices for 8 per cent
rentes in Paris, which lost over 2
francs in fortnight. Even in neutral
countries of Europe there is difficulty,
failure of a s150,O00,000 government
Az per cent loan at par having pre-
cipitated a crisis in the Spanish Cabl-
net. Tomorrow New York City Of
fers 81 5000 in Az per cent cor
porate stock to retire part of last
autumns 6 per cent notes. The re-
Spouse to this offering will furnish
interesting means of comparison be-
tween the credit position here and in
Europe.