The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-07-23

New York, July II, 1915.
War problems still continue to oC-
cupy the center of the stage and TO
dominate the financial and business
situation. After years struggle re-
presenting enormous economic waste,
the belligerent nations OF Europe find
themselves confronted with the more
serious task of financing their trcmen-
dous operations with comparatively
depleted resources. This calls not
only for greater personal sacrifices on
the part of individuals, but also for
the most skillful and scientific meth
DDS of National financing ever devils
ed by human genius Attention has
already been called in this depart
ment to the enormous scale upon
which the fighting nations had been
using up their resources i'll the strug
gle for supremacy. Should the con-
ftict continue for protracted period,
the nations will be compelled to rely
to an increasing extent upon their
credits at home and abroad, instead
of upon resources which have been so
wantonly sacrificed to appeasc the
god of war.
In this particular, American bankers
are interested in the announcement
made by Brown Brothers last week re-
lative to the $20,000,000 credit which
the French government is expected to
arrange with New York bankers. 1t
is understood in the financial district
that the $2O,000,O00 of acceptances are
to be discounted at per cent and
commission of three-quarters of per
for nrraDtonCa ic
making the net cost of the money
6 per cent. The bills will run for three
months and carry the privilege of two
months. The French bankers who
New York bankers include the Roths-
childs, Hallet Feres ct Gle, and Heine
ct Gle. Each of these houses will be
responsible only for the bills which
it draws, although the entire loan is
to be covered by guarantee of the
Bank of France and secured by the
French Treasury bills. The proceeds
of the loan will be used wholly for
commercial purposes. This is the 3rd
arrangement of similar character that
has been made in New York by the
French government, or French bank
ers, for loans or credits to act as an
Offset to the adverse effect upon for
eign exchange resulting from heavy
expenditures in the United States by
France for war and commercial sup
plies. The first loan was for $780,
100000 one-year French Treasury
notes, which were sold by ]. p Morgan
& Co in the United States, and with
in the past month a. banking loan of
about the same amount was negotiat-
ed through the bankers just mention
ed, ST. Paul and Pennsylvania bonds
being put UP as collateral
According to reliable estimates. the
French government to date has Dor
rowed 81 ,6S0, 100000 from its own sub
jects.
American bankers have been rather
anxious to know the result of Great
Britain's popular war loan offering
the first subscriptions for which were
closed and tabulated on Saturday of
last week. According to information
contained in Mondays cables, the Of
tering was complete success and
preceding the announcement have
come many interesting accounts of
personal and institutional manipula-
ting of money and property in order
that this result might be attained. The
first subscriptions reach the enormous
total of f5S5,000,000 equivalent on
the ordinary method of calculation to
$2,925, 100000 The British Chancellor,
in making his public statement, says
that this gigantic total represents only
new money and does not include any
stock which will be issued for the
purpose of conversion. 1t is by far
the largest public subscription for any
purpose in the history of the world
English investors and institutions hav-
ing subscribed so great an amount as
that, it is by no means surprising that
the subscriptions were preceded by
heavy liquidation of English-owned
American securities.
London has now entered upon a per-
lod of high interest rates, and the an
nouncements made in connection with
the last war loan lead to the belief
that still higher rates are anticipated.
This applies of course to the larger
and not to monthly or
weekly loans. But it is being reflect
ed in a practical way by discout rates
IN Lombard street, which are quoted
at Az to AS per cent, according TO the
maturity OF the bills This is more
than usually close to the official bank