New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-06-23

the issue was practically TO stop all
other business on the Stock Exchange:
In most markets prices experienced
fairly severe falls. Home rails were
especially affected and coionlals gave
way sharply. The great feature OF
the day was the way the old war loan
jumped on the strength Of the con
version terms. 1t closed last night al
1894 and reached 95i2 within quar-
ter Of an hour this morning.
Among the Stock Exchange Jobbers
it was generally believed that the new
loan would offer an opportunity of
selling Consols, which recently were
almost unmarketable. There was q
distinct movement to buy them, be
cause it would have the effect of
liquidating the bull account. There IS
no quotation for the new loan, be
cause dealing will not be permitted
until after the allotment. A very
prominent American banker, who did
not wish to be quoted, said 10 The
Tribune correspondent to-day:
"The reception has been extraordi-
narily favorable. II seems to me that
this time patriotism and proHt are go
ing to coincide. If asked a week ago
whether there would re a rush for
such a loan. | should have said no,
because | believed the principal in
vestors would hold off for better
terms.
Praises McKenna's Strategy.
"But, from every indication and
careful inquiries among the principal
bankers, ! have come to the conclu-
sion that Chancellor McKenna will get
any money he wants up to fiOOOOO.OOO
with ease, simply because he has had
the cleverness TO produce an issue
which is not merely more attractive
than any previous one TO the unSo-
phisticated investor, but has lngeni-
ously combined it with an aprcal to
the heart that cannot fail to open the
tghtest purse-strinES.
81 do not think gilt-edged securities
will be permanently dislocated by the
issue. McKenna's conversion scheme is
an amazingly brilliant piece of work
which will win the admiration of the
worlds fnanciers. He is not merely
wiping out huge block Of future in
debtedness, but is also bringing ire
mendous influx of new money.
~ DO not anticipate that there will
be many private subscriptions from
America, attractive as the loan Is when
one regards the security ohcrcd, mann
" for the reason that the American IS
still unused 10 foreign investment. But
should America enter the war, then
believe the British government could
float a similar democratic loan for 81
900. 100000 with the utmost ease, L.
tfk
the grounds of patriotism.
Effect in United States.
"There is ore effect | believe this
loan will have in the United States
which apparently is not yet toreseen.
II is going to awake the entire country
10 the possibilities Of foreign invest
mcnt in the near future. If this 2r
lasts another year, II means Britain
must find another $4,000 100000. Whe-
Their the Bank of England can stand
the strain of this and the burden OF
financing France, Italy, Russia and pos
sibly Greece and Rumania remains TO
be seen.
Furthermore, ii must not be over
looked that when the peace armistice
is declared it will probably be four
months DeiOre an agreement OdlI NC
reached, during which time bellige-
rents burdens will remain much e
same as now. because all will still have
to keep armies in the field and continue
TO pile up munitions.
at may be that a year hence the
Bank of England will find its normal
supplies Of money exhausted. America
will be the only country left in nor
nal position. The result will be that
she can enter the peace era with such
tremendous financial preponderance
over the rest of the world that the
financial centre of the universe will BE-
shifted from London to New York,
which not only for geographical rea-
sons but also from the general stand
point of the worlds prosperity would
be regrettable.
"For this reason ! would like to see
America making large loans now. !
know the view generally held is that
we are a borrowing not lending coun-
try, but this opinion merely arises
from the fact that American investors
never had occasion TO take more than
a local financial outlook. This loan IS
quite likely to shake all our previous
notions Of international investment"