New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-06-16
new FRENCH LOAN
TO Be MADE HERE
Break in Exchange Rates
Brings More Definite
Talk of Credit.
AMERICAN STOCKS
AND BONDS COMING
Collateral on Way to New York
Sterling at New Low
Record Price.

18th the big Wall Street financial
institutions quoting bills on London
and Paris yesterday at new low prices
in the history Of the exchange market,
talk became more definite among
bankers of loans to these nations.
That France will be the first Of the
warning countries to establish a big
credit here is now thought likely.
Evidence of progress in these Lego
tiat:cns was found in dispatches from
Paris stating that the first consign-
ment Of American securities which are
to be deposited as collateral for the
loan is now on the wa to the United
States. Despite the fact that the last
Offering of French securities in this
market was not the success the under
writer's hoped for, it is understood that
the big international banking houses
will take more kindly TO loan backed
by American stocks and bonds Of
known value.
in foreign exchange in the face of con-
tinued heavy shipments Of gold from
Canada recalled the agreement that
was entered into between English and
American bankers when it was found
soon after the close Of 1914 that gold
shipments were no longer necessary TO
meet our obligations abroad. This
plan stipulated that should the situa
ton become so unfavorable to Great
Britain as to seriously endanger her
gold reserve, a way would be found to
safeguard her resources.
Demand sterling broke yesterday to
4.76as, and cable transfers TO 4.767s,
compared with Mondays record low
quotations of All 5-16 and ATT 1916,
respectively. Under normal conditions
the value Of the English pound is 4.S6es
so that yesterdays price for sight
drafts represents a discount from par
i,y of about per cent. In other words,
checks on London are now worth more
than 10 cents in the pound cheaper for
the buyer here than in normal times.
The purchasing power OF British funds
in the United States is Spondlngly
decreased
While sight and cable drafts on Lon
don were cheaper than ever for the
buyer exchange on Paris also dropped
10 new low records. II required 5.45@a
francs TO equal an American dollar,
compared with 5.44 Monday, 5.4la4 earll-
er in the present month and normal
rate of 51Sie The discount from the
value OF franc quoted In dollars now
amounts TO per cent. The prevailing
discount on Italian exchange Is 10 per
cent, on Russian exchange "a per cent
and Is per cent on German exchange.
\ slightly steadier tendency to the
market late in the afternoon was at
tributed to buying by j. p. Morgan d
Co. Of sterling bills, and by Lazard
Freres of French eXchanC,. The
amount of gold received by the Morgan
firm from ottawa and deposited in the
Sub-Treasury was $780, 600, bringing
the total gold imported from Canada
since the FIRST of the year up to APP
proximately $73,O00,O00. Shipments 10
Morgan & Co. alone have totalled $780,
600 600.
Although this is time o. the year
when the country's export trade is nor
mally light the figures from the Port
Of New York for the week ended June
y. made public yesterday, showed $24,-
5l6.535, against S2l .507, 1853 for the pre-
vious week and Sl4,76S,234 last year.
Slice January exports from this port
have totalled $6l5,3l6,O99, compared
with S444,s67, 500 the previous year. OF
| last weeks exports Sl5,4eO,3s2 were
sent TO France and England.