New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-08-21
BANKERS Think Nothing
Will Be Done Until
President Acts.
NEED FOR MONEY
HERE is FEARED
d War with Germany Comes
This Country Will Require
Bond Issue.

The torpedoing OF the Arabic may
.ssult in the temporary suspension of
- NEGOTIATIONS looking toward the
r-sntinc Of a big loan to Great Britain
Sv American bankers. The feeling yes
..,sav was that no definite proposals
.bopld be accepted until all the facts
concerning the sinking of the White
star liner were in the possession of
the State Department and the judg-
nent Of Secretary Lansing and Presi-
don't Wilson had been made known to
the American people.
For the changed attitude of the
bankers the reason was put forward
that should the relations between the
United States and Germany become
more strained than they are the con-
seouences may make it necessary for
the Treasury Department to issue a
large amour. Of government bonds for
nprposes Of national defence. In such
an event, it was pointed out, it will be
necessary 90 conserve the financial re-
sources Of the country and at the same
time make it III advised TO float for
,i.7 loan Of the size talked of.
Bankers with important European
connections were not inclined to be-
lieve the reports Of huge amounts of
securities and GOLD sai3 TO have been
IN the Arabic cons gned to banking
firms and Stock Exchange houses. The
amount OF the securities. according to
some dispatches, WAS placed as high
as s15.OO0.0OO but the gold on board.
il was thought, would not exceed
100000.
Il was learned definitely that one IN
ternational banking firm was TO have
received 100000 in stocks and bonds
As deliveries on sales previously made
by foreign holders of American sechr-
ties. I'm this instance, which, 1t was
said. applied TO others, no permanent
loss was expected. as every precaution
had been taken for their replacement
in lust such a contingency as sub
marine attack. The securities had
been photographed. the photographs
having been dispatched on a neutral
vessel along with the insurance poll
c.es. The photographs will be used as
afidavits or means of identification in
presenting claims for the issuance Of
duplicates.
il was also pointed out that even il
no photographs had been taken :he
serial numbers of the securities
shipped would be on record, and after
q more or less prolonged and tedious
process Of comparison, investigation
and affidavit making, duplicate securi-
ties might be issued. 1t was reported
that the Arabic carried large amount
of the stock of the Canadian Car and
Foundry Company, concern which
has received more than S150,OOO,OOO IN
war orders from the Russian govern
ment.
One Of the factors that tended to
discredit the rumOr that a large amount
Of gold was in the hold of the White
Star liner was the information OBJ
tanned al the Offices of J. p. Morgan
4 Co. that they had no knowledge of
a shipment Of the yellow metal con-
signed TO them. officials of the Inter
national Mercantile Marine Company
also claimed TO be equally ignorant Of
the character of the ships cargo They
did not know whether gold or securi-
ties were on board.
Final arrangements were made yes
,erday for the sale by the Morgan
firm representing French banks and
',he French government of the Penn
sylvaria Company 3$l per cent franc
bonds that were used as part collateral
for the recent loan to France of S43,-
100000 The proceeds of the bonds,
which were sold to Kuhn, Loeb e. Co.,
acting for the railroad, will be used to
ray of about S27,O0O,OOO of the French
loan
Remittance rates on London, while
slightly under the last quotations of
Thursday, closed firm yesterday at
467i4 for demand sterling and ASS
for cables. The market for francs
was stronger than on the previous
day checks being quoted at the close
al $50 and cables at $50. The firm
tone Of the market was attributed TO
the continued Inquiries for bills with
which 20 meet payments on sales OF
American securities held abroad. II
the negotiations for the establishment
Of a large British credit here are sus-
pended foreign exchange bankers pre-
DICT further heavy selling OF Ameri-
cans by London 20 remedy the foreign
exchange situation.