New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-08-17
LOAN DELAYED,
EXCHANGE SINKS
TO LOW RECORD
English Control of World
Finance Shaken, Ster-
ling Touches $4.64.

Finance Shaken, Ster-
ling Touches S4.64.
While bankers conferred yesterday
on the matter of granting to Great
Britain a loan which will permit the
Allies to continue the purchase OF war
munitions and foodstuffs in this coun-
try on large scale, renewed weakness
DEVELOPED in the foreign exchange mar
ket. and remittances on London and the
principal Continental financial centres
fell to new low records.
The temperance of J. ?. Morgan at
his desk around the noon hour, after
an absence of six weeks, served as
temporary stay to the declining quota
tions. 1t was at first thought that Mr.
Morgan's presence at the bankers con-
ference meant that the pending plans
for a big British loan were nearing
completion. but when it became known
shat no definite arrangement had peeh
made exchange bills were thrown upon
the market with renewed vigor, and the
resulting liquidation broke the market
in the case Of remlttances on LohdOh
and Paris TO within a point from lhe
low levels.
The value of the British pound ster'
ling went steadily and rapidly down
ward until it touched S4.64 IN Amer.
can money, against d normal Value Oh
S4.S6G5, and the lowest price IN the
memory Of bankers. Francs followed
suit. falling to 6.02 to the dollar,
whereas usually it takes about francs
10 make a dollar. German and Italian
exchange were also quoted at big dis
counts. Russian roubles displayed
greater strength than on previous days
on covering Of short commitments.
European Buyers to Lose.
The maximum depreciation yesterday
in pound sterling was AZ per cent
below normal. in francs 10 per cent, IN
Italian lire % per cent.
As every contract made by American
manufacturers for supplies sent abroad
calls for payment in dollars, and not
English sterling pounds, which nave
been the standard Of finance the world
over. the immense losses due to the de-
cline in foreign exchange rates Will De
What to do to remedy the present
Unprecedented situation engaged the at
tention of the bankers who attended
Yesterdays conference. Among those
present were J. p. Morgan, II. I. Davl-
son, Frank A. Nanderlip, Charles II.
Sabin and Albert II. Wiggin. These re-
iterated former assertions that as the
buyers Of American goods are the SUI
ferers by the depreciation in exchange
IL is up TO their financial representa-
tives to present the remedy.
II was generally believed, however,
that the present abnormal situation Will
not be permitted 20 continue long. The
two alternatives that have been dis
cussed mcrt frequently are the esta0-
Eshment here Of q huge loan or credit.
estimated as high as 100000, 900, or the
ACQUISITION by England OF large
amount Of American securities, 70 be
placed in this country as collateral Tor
a temporary credit, similar 60 the one
created recently by the kothschllds OF
Paris for the French government.
It is estimated that the amount OF
war contracts, payments for which viii
be due before October ]. approximate
between S4GO. O0O0 and 50O.O0O,O00,
in addition to the huge total OF more
than 81 000. 00aO0O owed by Europe 10
the United States at the close Of the
fiscal wear June 30. II was stated that
the prospective profits on some OF these
contracts have been greatly eXagger-
ated. and that only normal profits would
accrue in a majority Of cases. rms, u
was said, has been due 70 the rigid sur
yei.lance exercised by inspectors OF
Great Britain and her allies over III
deliveries.
More Gold on Way Here.
The most optimistic feature Of the
foreign exchange situation yesterday
was the general belief that a second
large shipment Of gold Is on its way TO
New York. approximately 10000 600
reached here last week from London.
Wall Street heard that the next ship
ment will be from South Africa or
Australia. One OF the factors which
operated against permanent display
Of strength in yesterdays trading was
the delay m obtaining and executing
cable orders for securities. a case was
that of Union Pacific, which was down
. points in the London market, while
IL made a net gain Of IS on the Stock
Exchange.
Leading bankers are practically
unanimous in the opinion that England
has failed to realize the fact that she
has lost control Of the worlds finances,
temporarily az least, and that by not
establishing an adequate credit here
she still clings to the delusion that the
pound sterling is the accepted stand
ard Of international finance.
Unless definite steps are taken in the
near future. bankers predict that ex-
change on London and the other Euro
pcau money centres will continue
steadily downward. This tendency, they
sav will follow the continuation of
American exports in still larger guam
titles with each week, due to the COM
pletion Of war contracts and the ship
mcnts of grain and cotton from this
years crops.
II 6 GIVES BERLIN