New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-05
France Sells Her Own
Bonds Here to Pay Us
for War Supplies.
MINIMUM PRICES
AT LAST REMOVED
Trading in Stocks Heavy, with
Outside Buying Still Well
Maintained.

| of minimum prices from Stock EN-
change trading last week gave evidence
of the extent of our recovery from the
/ financial unsettlement into which the
world was thrown last August. Fear of
overwhelming European liquidation OF
American securities here, which per
sisted through the weeks when the
/ Stock Exchange was closed, is now re-
moved, and it is no longer necessary
to protect lenders on collateral by
sustaining security prices at artlnclal
| levels. Instead of European owners
! embarrassing us through return of our
securities, they are selling their own
/ here TO pay their debts.
| We have gone a long way from the
/ troubled days of last summer. when II
seemed that our pending obligations
abroad might drain this country of its
| gold. Now we are offering accommo-
/ Gation TO European powers, so they
will not have to ship their gold to us
| That some credit arrangement would
! be necessary has long been recog-
| nized. We desire the continuance OF
the heavy purchasing Of foodstuffs and
war supplies here by warning nations,
and must do our share TO make simple
| the payment
The course Of our stock market has
1 indicated that there is for the present
! little disposition on the part of for
| eign owners of our stocks and bonds
/ to dispose of them here. AS it stands,
| such securities seem a most desirable
form of investment. and the threat
| that their sale might be forced through
some form of discriminatory taxation
/ has not been carried out. Ordinary
| offsets to our exports to Europe, such
as tourists expenditures and remit
tances by foreign born residents here,
| have been greatly reduced. Imports,
/ too, have been cut down through our
greater economy and Europe's lower
| production, with its men engaged in
actual fighting or in providing means
| Of warfare.
Washington's Change Of Front.
Our government, which early in the
war was disposed to look with dis
| favor on loans to the belligerents as
! infringement of the spirit of neutral
! ity, has recognized that it is neces-
sary to allow credits to be negotiated
| here to pay for purchases against
which there can be no objection. Inc
| first important offering was Of 500
| 000,000 in one-year per cent french
Treasury bonds, put out through a
banking syndicate. Payment OF prln-
cipal and interest will be either IN
+ New York funds or in Paris at a fixed
rate of exchange, which should guard
the purchaser against risk through
possible depreciation of currency IN
France or through fiuctuatlon of eX-
change rates. Application for the IS
sue has been large.
The foreign exchange market showed
little direct effect of the French loan,
rates on London and Paris ruling low. 1t
was understood that the proceeds,
which were to be applied to purchases
here, were already needed for bills
coming due this week and the week
preceding, so the actual influence
was that of removing supply
of bills that might have depressed
rates further.
| A small issue was put out by the Ger
man government through bankers here
and in other cities of the country. St
consisted Of Sl0,000,000 of per cent
/ nine months treasury notes, offered
| like the French bonds to yield about
/ 515 per cent, payable principal and in
! terest in this city. Already fairly
! large amount of subscriptions to the
/ latest German bond issue have been
/ sent from this country, and it is under
stood that the Sl0,000,000 offering is
being easily placed.
Minimums No Longer Needed.
Removal of minimums on the local
! Stock Exchange followed three days OF
/ heavy trading at prices well above the
/ official low levels. The committees that
! had been in charge of minlmums on
/ stocks and bonds were discharged and
/ trading in securities here can now take
! it's free course as before the war. Stock
exchange authorities announced that
ruling prices were so far above the
/ minimums that these safeguards were
practically useless, and the cOuntry's
financial affairs and foreign trade posi-
ton had improved so that danger fol-
lowing a food of foreign liquidation
was no longer to be feared.
Early in the week stocks continued
70 be heavily purchased and prices M
proved. Business was on large scale
and the list of active issues was a
broad one. For the first four days OF
the week, up TO Fridays holiday, total
transactions in stocks reached more
than 2,5O0000 shares. Bonds also we're
dealt in more actively, though specu-
( lative issues contributed the greater
part of the increase. Purchasing by the
outside public was largely speculative
and contired more TO the industrial list
than in the week before.
Traders here after the long continued
rise are disposed 20 make profits and
make some commitments on the snort
! aide. and the advance had been checked
before the week ended. Foreign selling,
as result Of prices reaching levels at
which London Stock Exchange loans
| could be Inundated, had some depress-
hn I'M
April Settlements Easily Provided for.
There was little sign OF the custom
arv frmness in the local money market
preceding April settlements. Time
| loans on stock market collateral were
made at rates Il trifle higher Tor the
Longer dates. but funds were abundant.
Call money continued plentiful, renew
ing each day at per cent, with ~ the
highest At the end of the week clear
iug House institutions had made a
small loss in surplus of around 81 .5uO.-
600. Loans were expanded Sl4,OOO,OOO,
not d large amount in view of the
French loan, dividend and interest re
quirements and first OF Apr! settle
ments. With excess reserve stll over
/ Sl4S.000 900, local financial institutions
are in exceptionally strong position to
meet whatever duties may fall upon
them.
/ In London discount rates were much
frmer after the Bank Of England had
published on Thursday d return show
ing the reserve proportion reduced TO
about 1872 per cent, the lowest since
the first month of the war. Loans were
heavily increased with the approach of
spring settlements and deposit liabili-
! ties expanded as the government re-