The Washington times., 1915-10-03
WEEK IN FINANCIAL CIRCLES
Furnished by ". b. Hibbs q Coz

A morc marked Improvement In the
financial and business affairs or the
United States was apparent during the
past week than for probably any sinn-
lar period sinsc the worlds commerce
was thrown into n chaotic state by the
outbreak OF the European war.
Several important factors contribut-
cd to bring about The optimistic feeling
that now prevails in practically all
lines Of industry. There were no defel-
opments that threatened the peace OF
tho nation: the terms of the foreign
credit to be extended to Great Britain
aud France have teen determined upon.
and internal trade Is constantly IN
creasing.
After several weeks OF negotiations
the Anglo French commissioners and
American financiers have agreed upon
the conditions OF a loan, the provisions
Of which are 50 attractive to investors
as to have assured already a large over
subscription.
This loan. or credit. the principal pur-
p>se of which from the point OF View
Of Americans In the protection and sup
port OF tho country's regular trade.
calls for the issuance of $6Oo00oo 600
worth Of fivs-year 8 per cent bonds,
obligation OF the British and French
governments as regards both principal
and interest.
The bonds will be repayable at the
end of Ave GEARS OF convertible, at the
oHtion of the holder into ~ per cent
LSnds Of the two governments. repay
aHle not earlier than fifteen years. ana
not later than twenty-five years from
the present time.
IN lao r. fl "a
by q syndicate at 6. All members OF
tho syndicate will be upoh the same
l'asis. The price to the public Will he
at which tEure cun, the sTSur1,es Tbn %a
OF the lean will be used exclusively IN
the United States.
That tho establishment of the loan
was essential to the protection of Amer
lean trade WAS responsible In large
MEASURE for the dispelling of the op-
position which for a time threatened
TO defeat its fictation.
at had bccor,e apparent that some
Sop had to ne taken to create credits
in. the United States against which for
eSGn customers might dInw In payment
Tor their purchases, or that these pur-
Uhases would have to be reduced
The United States Is acc ustomed to
its Industries are adjusted t. that state
of AFFAIRS. During the fiscal year lsiS
the trade balance of the United States
had mounted up 10 $l.osi. ile. 900. and II
was evident that unless the volume
were s,irtailcd by the inability of pur'
chasers to make bayment the Dalahct
in favor of this country during the cur.
rent year would be vastly larger thar
for the wear just closed. II was u
preclude such a curtailmert that th'
loan was projected.
Payment OF International debts ls no
problem OF money raising. put on
u exchange. British and French BUY
Srs might have ample funds IN thei
home banks. against which they coui,
draw for payments ut home, but suci
funds could not be utilized for pay
could be found who would accept sucl
a payment In exchange for New forl
credit.
That these credits on New York wer
not readily obtainable. was made evi
dent by the sharp breaks in foreign ex
change several weeks ago. The slum
in foreign moneys did not mean tina
the gold equivalent in those moneys
compared with the dollar had dcpreciat
ed. It did mean that exchange on tn
United States was hard to get. and
premium had 10 be paid to obtain Il
since there was not enough to g
around
! But the higher rate did not relied
tny benefit to the American with good
foreigners had to pay for America
goods, without inurjng to the seller. Tn
premium went to the fortunate ind
yiduai with credits in the United State
.Sssh'. situation encouraged export,