New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-04
STERLING FIRMER
ON N. Y. MARKET
Progress Toward Expect
de Loan to England Cited
as a Reason.
FOREIGN EXCHANGES
ALL CLOSE HIGHER
Plan Reported for British Issue
of S55O,0O0,00O To Be De-
posted in New York.

Early reports from London yesterday
that sterling bills had scored sensa-
tionsl advance overnight were followed
here by an excited opening. during
which bids as high as 40 for demand
were talked Of, but so far as could be
learned no actual dealings were record
ed at this figure. The high mark Of
the day was said to be 4.69-seven cents
In the pound above Thursdays last
quotation.
After the furry at the opening the
market acted in more orderly fashion,
and the rates for all foreign moneys
closed higher. Demand sterling ended
the day at 4.67h and cables at 4.68.
Franc checks were stronger az 5.94.
against the previous close of 5.97, while
reichsmarks were quoted at 80A, COM
pared with sos at the close on Thurs
day.
Many reasons were given for the re-
dovery in British exchange, among
which were continued covering Of
shorts, selling by foreign holders Of
American securities and further prog
ress toward the expected loan TO Eng
land. In anticipation of this event it
was learned that bankers here nave
been lending freely to their London
correspondents. Such action would nat
urally result in a stiffening of rates.
One prominent banker explained,
however, that this form Of financing
was only of temporary nature. and
would doubtless be replaced, with the
arrival Of emissaries from England and
France, by more permanent arrange
| IL IL tAaN
loan Of this character had been made
despite the conclusion reached by some
afternoon papers that the exchange sit
uation had finally been cleared up.
what would be the use of the
French and English bankers coming
over here to confer with US if loan
had already been arranged" was his
comment on some of the outlines Of
the projected credits.
Among the reported plans for ad
justing the foreign exchange situation
which at least did not receive the de-
NAL of one big banker who is taking ar
important part in the negotiations fol
the extension of big loan to Grea'
Britain and her allies was one provid
ing for an issue of f1l0,000,000 of FIVE
year bonds by the English govern
ment, which would be deposited with {
trust company in this city.
Against these bonds as collateral thu
trust company in turn would issue
about $500,000,000 certificates of par
ticipation. which would not be direc
obligation Of the trust company, bu
simply evidence of the deposited Sc
curity and the value placed upon it By
an agreement between the British gov
eminent and the American bankers
Both the bonds and certificates woul'
bear interest, it was stated, the torme
being redeemable in pounds sterling
and the latter in dollars.
That temporary loans by American
banks to their London correspondent
will be further supplemented by add
tional shipments of gold to New Yorl
was deduced from the announcement
from London yesterday that the BAN
of England had sold f1,S57,OOO TO
American account. 1t also was under
stood that another large consignment
Of gold coin is now en- route to New
York on the British battleship which i
bringing over the English bankers.
Reports current that American max
ers Of ammunition have been asked Il
accept part payment in notes were de
MED yesterday by an official Of one Q,
the largest of these companies. HI
said 80 far as his company was con
cerned there had been no change in the
policy of receiving payment in cash or
delivery