The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1915-08-18
Imperative and Immediate
Need for $500, 100000
to Bolster Credit
EXCHANGE MARKETS
QUIETER YESTERDAY
The Arrival in New York, for Great
Britain's Account, of 100000 Gold
Coin from ottawa Had No Effect
Whatever on Rates.

NEW YORK, August 17.-Out of the
disorder of the foreign exchange market
Yesterday plans began to assume form for
floating a huge British loan 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 in
the day. 1t was reported toward the end
of the business day that syndicate of
bankers might be formed to finance the
loan and that the issue might consist of
one, five and 10-year bonds.
1t was thought significant that the talk
| yesterday was of loan whose longest is
sue should expire in 10 years. Heretofore
two years had been mentioned as the maxi
mum length of the loan. In some circles
| publication of the proposal was regarded
as d feeler for financial opinion as to the
ldesrability of financing a loan for 10
Years. In previous foreign loans the term
has been short and American bankers gen
orally have considered that investors in
this country would not take as kindly to
a longterm foreign loan as they would to
one having a life of not more than three
years.
The outstanding fact at the close of yes
lterday's exchange markets was the imper-
ative and immediate need for a loan of not
less than $500 900 600 to restore rates to
normal or thereabouts. There was every
indication that unless some action of this
sort were speedily taken, sterling, francs
land lires would be still further deprecated
and the financial burden placed on foreign
buyers of American products would be cor
lrespondingly increased. 4 signed state
ment by Sir George Paish. the British au
Ithority on finances who was sent here by
the government of Great Britain last fal
to unravel the tangled web of internationa
credits, given to the Associated Press il
London and cabled to New y ork was reaC
with keen interest by international fnan
ciers They thought Sir Georges analysis
of conditions and speculation as to futur,
ALTERNATIVES which American manufactur
ers and producers might face was inter
esting-and not in full accord with tn,
; American viewpoint.
The exchange markets were quieter yes
terday than on Monday. Depreciation o
foreign money extended virtually through
out the entire list, embracing reichsmark
and Spanish pesetas which fell to ney
low records, the former on cables to Ham
burg and Berlin. In the opinion of som
bankers, a great deal of the activity an
weakness was attributed to the speculativ
Operations Of dealers The arrival in Ney
Yorll, for Great Britain's account, of az
lproximately $1,000 600 gold coin from OF
tawa had no effect whatever on rates TIL
amount was regarded as insignificant j
the light of Europe's big obligations whic
J American manufacturers pressed for pay
ment. This shipment took the unusua
form Of japanese yen. Nor was the maj
llet buoyed up by repetition of Monday
report that more gold was en- route frol
Australia or South Africa.
Exchange rates opened at about Mol
days low figures. Pounds sterling wer
quoted at 4 "a to 465; francs opened q
IG.04 and later dropped to COS; lires, opel
ing at 6.54, went down to 6.56, before tt
close; reichsmarks cables on Hamburg an
Berlin fell to 81, a new low record; Spar
ish pesetas, quoted two days ago at 1870
= dropped to 1880. The course of the ma
: ket was irregular At noon it rallie
II slightly; in the middle of the afternoc
II session prices fell back again, reaching,
| some instances, their lowest quotations bl
II they recovered toward the close.