New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-01-02

| mAn-OWned YeBsel 70 CsPN"i" -
allies, with $l0,60O,OOO conslghTEon r
| Of gold, liable 20 seizure by any 90
man warship because II was desIi s..,
| for London and Paris, atter 49,
/ dsvs NJ sea returned 10 the uniteu
| States, putting in at Bar harD9.i
/ ter narrowly escaping isn
cruiser The legal controversy thsI
| ensu.d from her failure 70 proceed 10
/ her destination discouraged any furt Il'I
! sttempts TO send gold overseas even
| n the danger was not sufficient deter
rent- Eventually s5,0OO,OOO OF her
gold went 70 Canada, S4,6OOUoo was
Teturned here in trust for tno
Fuvon.an consignee and the remain
inc sf 600 600 was brought TO tho
ya6lt, OF the National City Bank.
City's Credit Saved.
Tbrou0h August demand Neriing
continued AZ prohibitive prices, always
being quoted 81 above SO until sep
tsmber &. with tho exception or a rev
dsya In the middle Of the month, when
ba1kers found opportunity 10 draw
sorne finance bills, and the rate droppeu
eIigbtIy below the 50 mark. by the
| later date IL became widely known
that / p. Morgan & Co. and hunn'
Loeb & Co. had been successiul lI
forming a syndicate Of ia banks ana
trust companies in this city TO under-
w-ito a new $4,000 900 note issue lot
the citv government. By agreeing 10
nav So Der cent Of their subscript ons
in gold or exchange, the synalca11e
members nut 10 I'm the power OF the
citv to meet it's $4,000, 000-odd OF reVe-
nue warrants In London and farls as
they fell due.
The effect Of the news was FAR
roacbing Not only did 10 promise
Considerable abatement Of the demand
for exchange m the local market ouJ-
What was Of even greater Importance
~ ropvinced Europe that America
would keep faith with all her creditors,
IIero exchange broke more than j
cents the pound sterling In single
dav: in London there was an imme-
date broadening Of accommodation lor
American bankers and a taclt agree
ment among the larger banking insti-
tutions there 20 extend finance ollls
and other debts Of like character for
an indefinite period. Thus the Keller
was made mutual.
To get around the difficulty Of max
Inr shipments Of gold across tho Az,
Iantic. the Bank Of England appointed
a fiscal agent At Ottawa. Gold sem
there from the United States was cred
tied 10 the shippers as though u hau
bccn sent 20 London, the price palo LOT
IL taking into account the loss OF IN
terest and the amount OF charges 20 ne
sustained when it was ultimately sent
across the ocean.
500. 200, 900 Gold Pool.
CollateraIlv with arrangements for
meeting New York Citys maturlties
there was organized a gold pool OF
500 600 600. TO which banks all over
the United States were invited TO con
tribute. The plan was to send gold 70
Ottawa from time 70 time, against
which exchange might be drawn to be
sold to merchants and others VINO
might have debts 70 pay abroad. me
pool managers did not attempt 10 com
nete with the regular exchange market:
mt were satisfied 10 allow the tact OF
so large reserve being available
serve ss a check upon attempts TO al
vance rates for speculative purposes
an end that was admirably attained.
ONLY part OF the subscriptions were
ever called for from the banks, and
less than S12,O0OOO0 gold had 70 be
sent across the border.
From the time the city loan syndi-
cate and tho gold pool were formed
the course OF sterling exchange rates
was almost steadily downward. THANKS
20 the confidence which these measures
had aroused In London. demands Tor
gold on al debts due there ceased. A.
the same time English banks MADE
generous extensions OF credit 10 bank
ers here and, the balance OF trade
again beginning TO swing in our favor,
with heavy exports Of foodstuhs and
cotton, sterling rates continued their
decline. At the last OF September de-
mand again touched So. but thereafter
il declined TO about 81 90-in round
, figures the exnort point for shipments
10 Ottawa for the Bank of England's
account. Late in October Il fell cents
In tho mound within thrcc days, and
seldom neared the gold export point
again. Now, st the end Of the year
with the export balance Of trade for
December reaching the SlO0OOO,O0O
mark. il is below the parity Of ex-
change. Henceforth there must be talk
not of gold exports but Of gold I'M
ports.
French Exchange Scars.
Inferior in magnitude to the sterling
market. the market for francs and
marks ordinarily attracts but little
attention, but 10 has been noteworthy
since the beginning Of the war in a
marked degree. For more than four
months French exchange was the high
est in the world At a parity francs
are worth approximately 5.18B for q
dollar. vet in the first week Of Sep
tember they rose to point where a
/ dollar would buy no more than 4.98.
That advantage has all been lost now,
present quotations being close TO par
, ity.
Marks have all along been at con-
siderable discount, though lately their
recovery has been rapid circumstance
supposed TO be due TO sales Of secur-
tiles here for German account, made
since the Stock Exchange resumed
trading in stocks as well az bonds.
10 is the custom to quote marks in
New York at so many cents for four.
At parity four marks are worth 95.2
cents. but as late as the first week
I in December they could be bought, in
shape of demand checks, for S5A cents.
Their last price on December 81, 1914,
was S8il cents.
A review Of the exchange market
/ for the year would not be complete
without some reference 20 the gold
movements Of the first six months, de-
spite their eclipse by the subsequent
developments. Even at the short dis
lance of half year they form a sig
nifcant feature Of the retrospect. In
all probability the historian, in years
to come, will see in them so plain a
foreshadowing Of the imminent war
that it will be a matter of amazement
that fhnir rrnnnirr Wa NOT nridnnt 70