New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-30
LONDON LOOKED
FOR LOWER RATE
British Financiers Regard
Loan Terms as High
but Necessary.

London, Sept 29.-The definite an
nouncement of the terms on which the
Anglo French loan is TO be issued in
the United States was about in line
with the expectations of Rrifis| o.
nsnciers. Though the yield is shade
higher than had been 4OOneC ---t ...
general opinion is that heroic meas
ures were necessary TO remove the
deadlock in exchange tra~ sar'i0~-
1t is felt hero that the advantage
rests with America ~ obtaining su.. .
good rate of interest and facilities
for its export trade, although England
also reaps benefit by the postpone
ment for at least live years OF pay
ment of the debit for goods received.
The question OF exchange is now OF
first Importance. Belief Is expressed
in banking and exchange circles that
further measures will be necessary TO
bring the rate more nearly to normal
figure. IL is known that good deal
Of money is being held for remittance
as soon as cable transfers reach $50.
Gold is still going out and VIII con
tinue 20 go in payment OF munitions.
The loan now arranged will cancel part
of the adverse trade balance, but IN
view Of the coming shipments of cot
ton and grain, which will swell this
balance. persons in close touch with
the exchange situation here are Of the
opinion thas further action will be nee
essary. At the same time. the slow
but gradual improvement of the Brit
ish export trade and a reduction IN the
importation of luXuries as a result OF
the newly arranged tariff schedule Will
help the situation.
Much more mi,ht be done by the
sale of further amounts Of American
securities, of which a very large total
is still held here. In the meantime
dealers, pending a more definite rise
in exchange, are adopting a cautious
attitude, keeping their books even. II
is understood bankers are keeping
] small balances in New York, anticipst-
! ing a rise in exchange. Consequently
any large orders which may come on
the market will have an appreciable
effect.
This was noticeable this morning,
when the sale Of $4,000 forced the
cable rate to s4.72l2. Some buyers
| then appeared, causing a decline OF
! S4.7lh, but the rate later vas steadier,
at s47i%.
London representatives of American
! financial houses did not care TO COM
ment on the terms of the loan in the
absence of news from their head Offices.
A prominent English banker ex-
pressed the opinion that the Anglo
French comm .sslon had done well in
view of the strong opposition in Ameri-
ca. This is the first loan Great Brit
ain has negotiated abroad, and al
though the exchange rate has recovered
only fraction at present, the money
has not yet been paid over. The high
yield must not be looked upon, this
banker said, as reflection on the
credit of Great Rritain, inasmuch as
short term bonds always yield more
than long term loans, and Americans
are accustomed 10 a high rate Of in.
terest on short issues.
The financial editor Of the Evening
Standard" in conn, enting on the high
terms" for the Anglo-French loan. says
these will be a considerable handicap
should a further loan have TO be raised
in the United States.
There fore, he adds, sit should be
premature TO be too confident as "a
their final acceptances by the British
and French government