New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1915-08-18
HUGE BRITISH
loan in new YORK
Bankers May Take Step to Aid
Foreign Exchange


disorder of the foreign exchange mar
kets today, plans began to assume
form for floating a huge British loan
in New York to check the downward
trend Of rates and protect the money
! of Great Britain and her allies against
further depreciation.
A group Of Wall street bankers
with international connections talked
the matter over late yesterday. When
the meeting adjourned the situation
it was said, was still indefinite and
plans in embryo. 1t was reported
toward the end of the business day,
that a syndicate of bankers might be
formed to finance the loan and that
the issue might consist of one, five
and ten-year bonds.
Called On By England.
This report published on two tick
ers widely read in Wall street, furn-
ished the only Indication as to how
for negotiations had progressed. Its
lack of dctiniteness reflected the gem
cral feeling that the big bankers of
The street had been called on by
England to suggest terms of such
loan and that negotiations were in
progress over tho cables to set the
IOIClSn CHS SlLualiOI1 TlSnI. Ou-
til these negotiations are concluded
and it seemed apparent that they hac
not been concluded today-there will
DC no official announcement concern
ing them, it is understood
1t was thought significant that the
talk today was of a loan whose long
est issue should expire in ten years.
Heretofore, two years had been men
NJ 10x,c T.
loan. In some circles, publication Of
the proposal was regarded as a feeler
for financial opinion as to the desir-
ability of financing a loan for ten
years. In previous foreign loans the
term has been short and American
bankers generally have considered
that investors in this country would
not take as kindly to a long term
foreign loan as they would to one
having a life of not more than three
years.
Need For $500. 600, 900 Loan
The outstanding fact at the close Of
today's exchange markets was the
imperative and immediate need for u
loan of not less than O0,O00,OOO 20
restore rates to normal or Whereabouts.
There was every indication that unless
some action of this sort were speedily
taken sterling, francs and Tires would
be still further depressed and the
financial burden placed on foreign
buyers of American products would
be CORRESPONDENCE increased.
r Statement By Sir George Paish.
A signed statement by Sir George
Paish, the British authority on firian-,
ces who was sent here by the govern
~fv ID
ravel the tangled web of international
credits, given to the Associated Press
in London and cabled to New York,
was read with keen interest by inter-
national financiers. They thought Sir
Georges analysis of the conditions
and speculation as to future condi-
tons which American manufacturers
and producers might face, was in
tereSting-and not in full accord Win
the American viewpoints"
Sir Georges statement, in the
opinion of some Of these bankers,
added little if anything to the in
formation already in possession of the
inner circle of monied interests in
close touch with the situation, al
though it was regarded as a clear ex-
preston of the English viewpoint
which heretofore had not been gen
orally understood by American manu-
facturers and investors One promi-
nent banker said that in his opinion,
however, it offered no remedy for the
present condition.
Exchange Markets Quieter.
The exchange markets were quieter
yesterday than Monday. Deprecia-
ton of foreign money extended Vlr-
tually throughout the entire list en-
bracing Reichsmarks and Spanish
pesetas, which fell to new low rec
ords the former on cables to Ham,
burg and Berlin. In the opinion
Of some bankers, a great deal of the
actiity and weakness was attributed