Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-08-10
$1O0,000,0OO S en- t b Y
Bank of En- G Iva n d
Across Atlantic via
Canada.
Heavy Guard Accompanies Big
gest Consignment of Money
Sent to U. S. Since Outbreak
of War - Credited to j. P.
Morgan G. Co.
Receipt Of Money Expected to Have
an Important Effect on Exchange
Situation, and indicates Attempt
to Establish Large British Credit
IN This Country.

NEW YORK. Aug lO.--Unhernded, but
accompanied by squad Of silent mon,
whoso hip pockets bulsed suspIcIously, a
Ions steel car slid into Grand Central
Station today and stood unnotlced,
among the hurrying thousands
In the car was SiCO.COOOOO in gold.
Shortly after II arrived the gold was
quietly Transferred to motortrucks, and,
Htiil accompanied by the squad OF silent
men, taken to the subtreasury, where It
was placed 90 the credit OF j. z. Morgan.
II was the first direct shipment OF gold
70 this country from England since the
war broke out, and it paid for the ship
load after shlpload of arms and ammuni-
ton that have left these shores for Brit
ish ports.
Strictest secrecy was observed regard
Ing the shipment The exact amount
could not bo asccrtalntd definitely, but it
was learned from good sources that the
shipment approNimated S1OO,OOO,OOO. The
bullion was shipped from England on
Canadian ships, and escorted by heavy
Canadian guard to the border, where ex-
press guards took II TO Bangor, Me-, and
thence to New York.
EFFECT ON EXCHANGE SITUATION
II is the effect on the exchange situa-
tion that looms up as the most important
consequence OF S1OOOOO.O 900 gold ship
ment a new low record for sterling
exchange. A75k. was reached yesterday.
There was no prospect of n rise in sight
and the financial district was wondering
sl..aa a.. u i
come from to pay for the large war Or
ders placed In this country by the
Allies through the Morgan firm
The gold shipment indicates that the at
tempts TO establish large British credit
In this country negotiations for which
have been under way for many months
did not meet with good results The low
exchange rate naturally added to the diff
hculties OF floating credit here. Until
the present time the only British gold
received In New York had come from
Ottawa but It was widely known that
the available Canadian supply was very
near to exhaustion, Since January l. 1915,
approximately sl33OOO,OOo had been i'm
ported from Canada. j r. Morgan & Co.
imported about S55,0OO,OO0 of this amount
and other banks imported the balance.
ENGLAND CONSERVED GOLD.
At the beginning OF the war New York |
owed England SioOOOl,OJO in gold. Ap- |
proximntcly nOOCO,Ooo In gold was sent to
Ottawa and deposited there to the credit
OF the Bank Of England. The Sl33.OOO,OOO
which was sent here from Canada since
then consequently represented a balance
of NS.000,0J0 in our favor. This admit /
tedly was a drain on Canada.
England, on the other hand, was con-
serving her gold supply having shipped
only small quantities to France The re-
cent British bond issue of $1,000 1000, ,OOO
which was principally subscribed for in
England brought a great amount of gold
into he Golfers of the Bank of England.
The last statement OF the Bank of Eng
land showed an increase I'm the gold sup
ply IN n single week of S3l 100000 This
statement showed that theA gold reserve
amounted to more than $500 600, ,OOO
Local bankers, when asked tonight for
details OF the gold shipment. were reti-
ceet Presumably. they said, the gold
would be used TO pay Off American credi
tors, They could not state how long the
Huppiy would last. one banker added
that u could not be regarded as certain
that a Britiah loan would not be neces-
hary now, The betterment of the OK
ehange situation, 1t was suggested, might
now facilitate financing without further
eonsisnments of gold across the Atlantic.