The Birmingham age-herald., 1915-08-21
FOREIGN EXCHANGE
 FEELS SHOCK OF THE
 SINKING OF ARABIC
Deputation of Bankers to Come From London to Negotiate S150,000,00O
 Credit Loan

New York. August 2o.--Misgivings as to developments from the destruction of the Arabic featured the serious foreign exchange situation today. The possibili- ty that American bankers might be called on to finance large domestic loan gave rise to many rumors concern ing the negotiations now pending over the Notation of a $50, 900, 900 foreign credit loan or some other form of Brit ish credit here
 We can well conceive of such a situation said one international bank CT However, that has not yet entered into the situation. Negotiations are proceeding without reference to the Arabic"
 A report that negotiations for flota- tion of British credit loan of s100,- o00.O00 to s15O, Ooo,0OO to pay for Ameri- can supplies purchased by foreign buy CTS virtually had been suspended, was denied. In several quarters the same ward was obtained, that nothing had in- terfered with the negotiations. Bankers, however, were loath to discuss in de- tail talk that circumstances soon might divert the attention of financiers from foreign loans to United States bond issue.
 Financial representatives here of the allied powers, while asserting that the situation had become complicated by reason of the Arabic incident likewise refrained from discussion of the pros pect for placing the contemplated for eign loan.
 London DeputatiOn
 Aside from the Arabic, the feature of the day in foreign exchange mark cts was the reported decision of British financiers and treasury officers to send a deputation from London to arrange the details of the projected loan. Such step, it was said, would be welcomed by American bankers as an obviation of the difficulties of negotiating a loan of such large proportions in these days of censored and delayed cables.
 No more eminent financial authorities it was said, could have been found h London than Sir Edward Holden and Sir Felix Schuster. who, it was re- ported, probably would be two of the three men on the deputation. Local bankers recalled Sir Edward Holden as chairman of the London County and Midland bank, who came to New York several years ago as representative or some of London's largest banking in- terests. to aid in formulating addition al safeguards in handling export cot ton bills of lading. A modification of certain bills of lading features was adopted here as the result of his visit.
 Sir Felix Scnuster is known here as leading authority on international finance, whose public utterances have received widespread attention He is the head of the Union of London and Smiths bank
 It seemed definitely settled tonight that negotiations would remain in abey- ance until arrival here of the deputa- : ton. Dispatches from London said the , date of their departure might not be made public until their arrival in New York. It was the general impression here, however, that they might sail on the St. Louis, due to leave Liverpool tomorrow.
 Business in the foreign exchange markets was virtually suspended. Nomi- nally rates showed betterment at tic opening and were almost unvaried dur ing the day.