The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-18
EXCHANGE SLUMP O
BELIEF That Britain VIII Get Loan
Hats Decline.

Halls Decline.
Belief that negotiations looking 10 the
placing Of a British loan or credit here
ranging between 800, 600. 900 and $500.
100000 were rapidly approaching com.
pleton was responsible for checking the
decline in sterling exchange yesterday.
As a result demand sterling and sterling
cables moved In a more orderly manner
While prices equailed the low figures nj.
tained on Monday they did not break be.
low them. M the close was nearly A
cent In the pound above that on Mon.
day. As a result Of the better tone
Of sterling. exchange on practically all Of
the other financial centres Of Europe ex-
hibited a frmer tendency. Demand ster.
ling closed last night at t.6t%, with ca
bles at 4.s5i y. as compared with 4.6l
for demand and 4.65 for cables on Mon.
day.
The report was current In banking
circles yesterday that ]. p. Morgan a
Co. were forming q syndicate to pur.
chase an issue Of one, fve ard ten
year notes or bonds of the British Gov
eminent. Members Of the Morgan bank
ing Arm and other bankers said that
they could not discuss tho matter. but
they did not deny the reports that the
organization of a syndicate was under
way.
Bankers See Bond Men.
There were numerous conferences on
the subject at the Morgan Offices yester-
day. Prominent bankers representing
other large institutions in the city were
present. representatives OF several OF
the big bond houses were also called into
the conferences. a fact which lent
strength TO the belief that the loan was
practically arranged.
Bond men said last night that they
had been sounded on the proposition by
the bankers and that they believed that
an issue of short term British bonds In
this market would ind a ready market.
The bond men expressed an opinion that
any amount from 500. geo, 900 I $780,
900, 900 could be successfully placed In
this market. provided hat their ma
turity was not In excess OF hve years.
One to Ave year notes are the most IA
vored. II Is believed In bond circles that
the British issue to be successful would
have to bear interest at s per cent. and
be free of all British income taxes. pres
ent or future.
Bond men who have talked with
their clients with regard to the placing
Of British notes here say that they be.
lieve that there would be an excellent
demand for the notes. They point out
that patriotism would play a large part
In tho success Of the issue In tina,
Americans. in subscribing for the issue,
would feel that they were doing some
thing thing to make New York still
more OF an international money mar
ket. They say also that there Is a
strong feeling here that the Allies fight
is this country's fight.
Francs closed last night at sol for
checks and 600 for cables. as compared
with SOC for checks and col for cables
on Monday.
Marks checks were unchanged at 81 u,
while cables were sold at 81 y, as com
pared with SIX on the day previous,
Italian lire declined to GO. as com
pared with t.is on Monday. Austrian
kronen remained unchanged at 1905,
Rubles were strong. advancing 10 36h
as compared with 35ia on Monday.
J. + Morgan q Co. received $685.
900 in japanese gold coin from Ottawa
yesterday. The shipment was made
from that city for the account OF the
Bank OF England. The gold, 1t is un.
derstood, entered Canada by way OF
Vancouver and was In the Bank OF
England depositary at Ottawa for some
time. 1t was in the form OF twenty
yen gold pieces, which are valued al
Ss.96s9 each. The gold was probably
shipped 10 the Bank of England de-
positary some time & In payment OF q
trade balance. as Japan has found her
self in debt to several nations since the
war began. Japan shipped consider.
able gold to this country earlier In the
year. Between January / and June
more than $4,000, 900 was sent to thi.
country by Japan for the I~nternationa
RapkinR COrnorat ion