Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-08-19
TIME NOT PROP|T|OUs
FOR BIC FOREIGN LOAN
Members of Syndicate Fear to Risk
Failure by Making Figures
Too High.
RADICAL REDUCTION is MADE
Probable That Credit to BE Placed
by England in This Country Will
Not Be More Than S15O,OOO, 900.
No More Gold Wanted.

NEW YORK, August lS-A reduction
IN the proposed foreign loan to be
hoated mere, from the half billion dol
lars first suggested to 100000 600 or
sl5o.oOo.oO0 seemed probable tonight
AS the result Of all-day conferences Of
International fnanciers here and by
cable between this city and London
while IT generally was thought this
amount would be utterly inadequate to
meet the volume of bills coming due
rapidly against foreign buyers of Amer
ican supplies. II was felt 1t would he
sufnclent 10 restore to normal value the
foreign moneys now at low levels of
depreciation.
The chief reason for the contemplated
lief that n large loan, such as was first
projected, could not be readily nlaccd
here.
WIRES TO ENGLAND
ARE KEPT VIBRATING
Wires TO England vibratcd all day
with proposals and suggestions between
bankers to whom the depression in ex-
change markets has been source OF
!''en apprehension. At the close OF the
day negotiations had not assumed con
crete form.
The situation has not yet crystal
hzed.' was the way one banker cx-
pressed ii.
a loan of $3.50. .o0o, 600 1t was pointed
out, would on the ordinary basis of
four TO secure a credit of 100000, 900
IN this country. According to reports,
collateral was TO consist partly of
American securities. partly Of British
external notes. and partly other col
lateral of a character not yet deter
mined
reasons for the radical reduction in
the amount caused much speculation.
Wall Street heard that a canvass made
by the syndicate considering the loan
had shown no widespread demand for
foreign securities of this character.
Besides. ii was thought the intcrna-
tional bankers who propose to finance
the loan would not hazard its failure
by making the amount too large
AS to current rumors originating in
London that a large amount of gold
help pay off foreign indcbt edness. fnan-
ciers asserted almost unanimously that
they would deplore the arrival of a
soon. The present supply. they said. Is
Unprecedented; in fact, more than SUM-
cienr TO meet any emergency in the
domestic financial situation. To draw
more gold from foreign countries. IL
was said, would serve no good pur-
pose here. but would tend to wreak
injury abroad by Weakening foreign
reserves already low.
WAsHINGToN NOT EXPECTED
TO DISAPPROVE LOAN
Whether Washington would disap-
prove the underwriting by American
bankers of n large loan to Great Britain
or her allies caused some sepculation
Careful study of the situation, how
ever. led bankers to believe that. mas
much as the entire loan, IL issued.
would be used to pay for supplies pur-
chased In America. there would he no
opposition 10 the project by tho ad-
ministration.
1t was learned that j. r. Morgan &
Co. had virtually concluded arrange
ments for the sale Of the 1856. 900, 900
francs Of Pennsylvania Railroad 81,
per cent bonds. which formed the major
part of the S4a.00O,00O loan recently
made by the French government
through the Paris house of Roths-
childs.
There were indications. however. that
negotiations now pending between
Morgan & Co. and Paris would result
In another loan, probably OF larger
amount than this one.
Notwithstanding the unsettled situa-
tion, there was no further weakness In
exchange markets to-day. On the con-
i.