Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-07-18
WAR DOMINATES
BUSINESS WORLD
Of Paramount Importance in
Finance and Trade
Situation.
FRANCE TO DISCOUNT
S2O,O 600, 900 IN BILLS
New York Bankers Arranging to
Handle Acceptances-Whole-
Il sale Outlook Better.

NEW YORK, July 1I.-W ar probieInS
still continue to occupy the center of
the stage and to dominate the financial
and business situation. After years
struggle, representing enormous eco
nomic waste, the belligerent nations OF
Europe find themselves confronted
with the more serious task of financing
their tremendous operation with COM
paratively depleted resources. This
calls not only for greater personal sac
rifices on the part of individuals, but
also for the most skillful and scien-
tific methods of national financing ever
devised by human genius. Attention
has already been called in this depart
ment to the enormous scale upon which
the fighting nations had been using
up their resources in the struggle for
supremacy. Should the conflict con-
tinue for a protracted period, the ma
lions will be compelled to rely to an
increasing extent upon their credits
at home and abroad, instead of upon
resources which have been so wanton-
ly sacrificed to appease the god of
war.
France to Borrow Here.
In this particular American bankers
are interested in the announcement
made by Brown Bros. last week rela-
tive to the 100000 600 credit which the
French government is expected to ar
range with New York bankers. 1t is
understood in the financial district that
the $20,000,000 of acceptanceS are to
be discounted at per cent and COM
mission of three-quarters of l per cent
for acceptance is to be paid, making
n mr.
The bills will run for three months
and carry the privilege of two renew
ais. making the total nine months.
The. French bankers who will draw
the bills to be accepted by New York
bankers include the Rothschilds, NAL
let Freres ct Gle. and Heinie ct Gle.
Each of these houses will be RESPONSE
BILE only for the bills which it draws.
although the entire loan is to be COW
cred by a guarantee of the Bank OF
France and secured by French treasury
bills. The proceeds of the loan will be
used wholly for commercial purposes.
This Is the third arrangement of SIM
liar character that has been made in
New York by France or by French
bankers for loans or credits to act as
an Offset to the adverse effect upon for
eign exchange resulting from the heavy
expenditures in the United States by
France for war and commercial sup
plies. The first loan was for $S0,000,0O0
one-year French treasury notes, which
were sold by ]. P. Morgan & Co. In
the United States. and within the past
month banking loan of about the
same amount was negotiated through
the bankers just mentioned. st. Paul
and Pennsylvania bonds being put up
~ collateral.
According to reliable estimates. the
French government to date has Dor
rowed 81 $50 OOO.OUO from it's own sub
jects.
American bankers have been rather
anxious to know the result of Great
Britain's popular war loan offering.
closed and tabulated Saturday Of last
week. According to Information con-
tanned in Mondays cables. the Offering
was a complete success, and preceding
the announcement have come many in
teresting accounts of personal and in
stitutional manipulating Of money and
property In order that this result
might be attained. The first subscrip-
items od reach a,h the ENORMOUS total OF
nary method Of calculation. to S2.925.-
OOO, 900. The British chancellor. in
making his public statement. says that
this gigantic total represents only new
money and does not include any stock
which will be issued for the purposes
of conversion. II is by far the largest
public subscription for any purpose
in the history of the world. English
investors and institutions having sub
il by no means surprising that the sub
scriptions were preceded by heavy
liquidation of English owned American
securities
Borrows From Own Subjects.
London has now entered upon
period of high interest rates. and the
announcements made in connection
with the last war loan lead to the be-
lief that still higher rates are antici-
pated. This applies. of course, to the
larger maturities and not to monthly
or weekly loans. But it is being re-
nected In practical way by discount
rates in Lombard street. which are
quoted at a.. to 4fs per cent. accord
ing to the maturity of the bills This
10 more than usually close to the Off
cial bank rate at ) per cent There
seems a concerted movement on the
part of English banks to keep up their
money rates. One reason is their de-
sire 10 attract funds from the United
States. and thus place a handicap upon
the importations Of gold into our own
country. If our banks can get more
than per cent for their surplus funds
IN London il viii be greatly to their
advantage to carry a part of their sur
plus abroad at that rate, instead of
n