The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-15
FINANCIAL NEWS
AND COMMENT
Bankers Favor q Large For
eign Loan without Col
lateral Security.
STOCKS TEND TO RISE

negotiations for n huge foreign loan here
continued to provide the principal in
fuence In the stock market yester-
day. Their effect was not altogether
one sided. and financial considerations
were furthermore qualified by the per-
sistent cloudiness Of tho diplomatic
situation. However. the tenor Of the
Washington and Berlin advices was
optimistic on balance. even though II was
felt that a definite understanding over
Germany's conduct of submarine warfare
might be difficult TO reach. Wall Street
was not apparently disposed to allow In
ternational politics to figure as largely
in forward reckonings as the matter of
the foreign exchange negotiations, n
underlying confidence in the successful
outcome OF these proceedings was re-
fected in the trend of the toe market
toward strength, even though the course
OF quoted values was irregular.
Dealings In stocks increased In volume
over Mondays trading. The price move-
ment was characterized by much back
ing and filing. which observers were
inclined to regard as significant OF ac-
emulation. Offerings were encountered
on advances apparently as though to
hold a rise in check. but rising
tendencies seemed to overcome the
supply in later dealings, especially In the
group of so-called war munition stocks.
with these issues leading. the market
presented an aspect Of strength toward
the close.
Announcement that Ambassador Dumba
had asked Vienna to recall him helped
to modify uneasiness over the diplomatic
tension. Afternoon reports that tho Ber-
lin Foreign Office had issued a statement
supporting Ambassador Won Bernstorfr's
view that the German Government had
definitely accepted the Washington posi-
ton In respect to the torpedoing OF pas
senger ships were not accepted as al
together conclusive. but the financial
community was reluctant to hold other
han a hopeful attitude toward the Ger
man controversy. The critical condition
OF Mexican affairs still failed to re-
ceive the attention II deserved. but rs
to this and other governmental problems
II was manifest that they did not inter-
est Wall Street as much as the foreign
exchange negotiations.
The overnight disclosure that the An
glo-French finance commission was pre-
"a W - " lNc tsNhpilsiliffcHt VI
n credit Of as much as a billion dollars
provoked no surprise. 1t has been un-
derstood all along hat the operations
to be discussed might be on the scale
OF such a maximum. No was much sur
prise exhibited over tho further state
ment that the Representatives of the
borrowing countries took their stand
on the ground that British and French
credit was good enough to require no
additional security for such loans as
might be effected.
Differing ideas were expressed about
tho reasons for taking such a stand.
one suggestion made was that II was
Intended to feel out sentiment here. II
was also argued that the borrowing
countries could not be expected to put
their best foot foremost and that some
thing In tho nature of preliminary
manpuvring toward the eventual bar
gain had to be counted upon. There can
be no question that British and French
credit Is good enough 10 borrow upon TO
vast amount and without support, and
although there may be a question as to
whether or not tho traditions OF this
country as a lender are sufficiently re-
garded In such a proposition II is also
true that a very substantial body Of
banking opinion here has favored an
outright fiotation of foreign Govern
ment securities as the soundest method
OF restoring stability to the internal
tional money market.
There was not much outspoken criti-
cism OF the declaration OF Anglo-French
borrowing attitude. and on the contrary
there was a good Zeal OF approval OF
the idea that the negotiations should
proceed along the line OF an unsecured
loan II was recognized hat this would
give American nance a chance to do a
big thing for III country. and not the
least interesting feature OF expressed
opinion was tho disclosure of some
Western banking sentiment favorable
to the absorption of out and out Gov
ernmen bonds running for a long period
OF years. Opposition to a settlement of
the foreign exchange difficulty was not
looked upon as likely to interfere with
the success of the negotiations any moro
than It has impeded the development
OF the country's present large industry
in war munitions.
Forecasts of the fiscal measures which
tho British Parliament will try to i'm
pose in the way OF Income taxes and
taxes on Imports served to emphasize
our interest In an ample provision Of
credit to foreign customers. Also. while
me weeks figures are not convincing.
IL Is worth noting that the country's
export balance last week. a~ggregating
about &c. zoe. 900. was the smallest since
weekly totals Of the sort would Indicate
plainly that the d~islocation of the
foreign exchange was ~curtailing our OK