Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1915-08-19
Conferences on
Foreign Exchange
INT IRRATIONAL FINANcIERs
KEPT CABLE BUSY.
$15O,OOO,OOO
LOAN
Is Now Proposed as Temporary Meas
ure-suppIy of Gold in the United
States is UnpreeedenteA

New York, Aug. 1S.-A reduction in
the proposed foreign loan to be float
ed here. from the half billion dollars
first suggested, to $1OO,0OO,OOO or
S150.000.O0O seemed probable tonight
as the result Of all day conferences Of
international financiers here and by
cable between this city and London.
While IT was generally thought that
this amount would be utterly made
quate to meet the volume of bills
which are coming due rapidly against
foreign buyers Of American supplies,
IL was felt that the sum would be suf-
hcient TO right the foreign exchange
markets temporarily. at least, and re-
moneys now at low levels OF depre-
citation.
Large Loan Not Easily Placed.
The chief reason for the conternplat-
ed reduction In the size Of the loan,
however. was Understood 10 be the be-
lief that "A large loan. such as was first
projected, could not be readily placed
here.
Wires 10 England yibrated all day
with questions and answers, proposals.
and suggestions. between bankers in
this city and nnancierE in London, 10
whom the present depression In ez-
change markets has been a source Of
keen apprehension for several days
past. At the close Of the day negO-
iiations had not assumed concrete
form.
"'rhc situation has not yet crystal
llzed.' WAS the way one banker Of
International prominence expressed IL.
a Loan Of S15o,oooy0oo.
In considerating a loan Of 800, 1000. .
900 10 $ljD,OOO, 900 10 Great Britain in
stead Of the $500, ,OOO, 900 originally un-
der adyisoment. local bankers evident
~ sought immediate rather than per-
nansnt relief for the situation. A
loan Of $iJO.0O0, 900 IL was pointed out,
would, on the ordinary basis Of four
10 one secure a credit Of $500, 100000.
In this country. The plan embraced
no attempt TO provide for later de-
mands, the tendency at present being
TO care only for todays needs and TO
meet tomorrow's situation when IL
should arise.
Collateral For Loans.
According to reports collateral for
the proposed loan was 10 consist
partly Of American securities, partly
Of British external notes and partly
OF other collateral of a character not
yet determined.
Reasons for this radical reduction
caused much speculation. Wall
Street heard that a canvass had been
made by the syndicate considering the
loan and that the result of this can
vass showed that there was not now a
widespread demand for foreign Sc
curitieS Of this character. Besides
it was thought that the international
! bankers who propose to finance the
loan would not hazard it's failure by
making the amount too large: but
would prefer to have a smaller loan
| over-subscribed than see a large one
fail.
Gold Enough Here Now.
As to CurreDt rumors, originating
in London. that large amount of gold
would be sent to the United States to
| help pay off foreign Indebtedness,
| hnanciers asserted almost unanimous
| ly that they would depIore the arrival
| Of a great quantity of gold in this
market now or soon. The present
| supply of gold in this country. they
| said is unprecedented; in fact. more
| than sufficient to meet any emergency
| in the don estic financial situation. To
| draw more gold from foreign countries
| it was said. would serve no good pur-
/ pose here, but would tend to cause in
| jury abroad by weakening foreign re-
| serves already low. In addition a
| superbundance of gold here it was
] feared, would cause a tendency toward
! imitation This tendency as much as
/ any other feature of the situation, the
| bankers Of America are anxious to
! avoid