New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-27
REVIEW OF THE
FINANCIAL WEEK
Sterling Exchange at Its
Highest Since Break of
Last Summer.
ALLIES TRADE DEBT
MAKES GREAT TOTAL
Value of Our Railroad Issues
Abroad Under Indicated EX-
port Excess of 1915.

port Excess of 1915.
Formal completion Of the s50,e00,0 900
banking credit for London came at n
time favorable for strengthening ster-
ling rates. Purchases Of exchange for
meeting annual mercantile settlements
and for January interest and dividend
payments abroad had helped TO stifFen
rates. Announcement Of the British
governments plan for gathering our
securities seemed TO insure n good sup
ply for further collateral credits and
for sales in our market. Sight drafts
on London recovered 20 4.73 8-l6 in the
pound, rising above 4.79 for the first
time since the break TO 450, the first Of
September. Since that time proceeds Of
the s500,00O,O0O Anglo-French notes
have become available for payments
here. In addition considerable amounts
Of securities have been shipped to this
side.
With continued purchases here TO be
financed through London there was lit
tie disposition last week TO talk Of
much higher rates for sterling or that
present levels could be permanently
maintained. The war, If long contin-
ued. will cause further drain on Great
Britain's strength, which, it may be, no
expedients can prevent exchange rates
from indicating. For the present, how
ever, exchange dealers felt that the
market was well under control. Specu-
lative selling lessened and short sales
were covered.
How great is the burden which Lon
don, as banker for the Allies, is carry
ing appears in our detailed customs fig
ures for the ten months ended October,
which were presented last week. Ex-
ports 70 the United Kingdom, France,
Russia and Italy were nearly 81, 100000
900, where in the year before they had
been under 100000. Our favorable
trade balance with these countries ap-
preached 81 ,4OOOOO,OOO for the first ten
months Of 1915, against less than $780,
100000 the year before.
Gold Imports Above SiOO,OOO,OOO.
With offsets such as tourists expen-
ditures abroad so greatly reduced, it is
not TO be wondered at that We are able
to grant credits, TO make foreign loans
and still draw gold in abundance from
abroad. November's totals brought i'm
ports Of the metal that pays interna-
tional balances up 10 more than $780,
O0O.O 900 for the eleven months, with
shipments of less than S2O,O00,0OO. In
spite Of all arrangements 20 prevent
unnecessary transfer Of gold, we are
expected to continue 70 add heavily TO
our supply,
Merchandise exports for eleven
months Of the year were more than
S3190.OO0, 900, November adding rec
ord monthly total of above 1891 100000
TO our shipments, in spite Of the handi-
cap Of Inadequate facilities for ocean
transfer With December sull 10 be
added we have in 1914 exported goods
valued at 81 575 ,0O0,0 900 more than our
imports From the preliminary state
ments Of foreign trade received each
week il appears that the calendar year
will show a favorable trade balance OF
around $780, 100000.
Just how British authorities are 70
make use Of our securities TO correct
the exchange position made acute by
this abnormal movement Of goods dld
not appear during the week, though
further details were made public TO
show that securities that have regu-
larly paid dividends and interest were
desired. Stocks and bonds Of large
industrial concerns are included, but
principal reliance is placed on railroad
issues. So the latest official estimate
Of foreign holdings Of our railroad Sc
curities published at tho end Of the
week comes with unusual interest.
Export Excess and Foreign Holdings.
The market value Of these foreign
owned securities IS put at under ST..
1852 900. 900. and this includes receivers
certificates, notes and equipment trusts
as well as stocks and bonds. Naturally
no account can be made OF holdings
that are registered in names Of bank
ers here for foreign owners, but such,
il NAV be assumed, will not easily be
disturbed. The total as given fails 10
surpass the indicated export excess OF
goods for 1914. OF course the account
for the years trade has IN the main
been settled as the year went along.
The compilation being from railroad &C
counts running from February 20 July,
a great part Of these securities are
still available for sale on future need.
Nevertheless, the comparison Is not
without significance.
The former estimate OF the commit
tee Of railroad executives from data
collected between October, 1914, and
April, 1915. put the par value Of for
eign owned securities az above S2,578,-
100000. This total, according 10 errors
since discovered. was $l2s.O00NO TOO
low. Between the first and second es-
Inmates there Is a shrinkage Of over
S4900O0,OOO par value, and nearly five
months have passed since the latest
date on which returns were made. We
have taken back a great amount Of our
securiticq this year without inconve-
~vsa d