The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-17
FINANCIAL NEWS
AND COMMENT
Exchange Rises With Report
Of Progress Of Loan
Negotiations.
SHARE LIST IRREGULAR

: There was q sharp rise in sterling II.
change yesterday afternoon which car
ried quotations to the maximum levels
of recovery so far. As this market may
reasonably be taken to reflect banking
knowledge OF the actual status OF the I'm
portant foreign loan negotiations now
under way the strengthening OF ex-
change could very we'll be taken as a
token OF the favorable progress OF the
deliberations designed to establish large
credits for Great Britain n France,
which will relieve British and French
remlttances from some OF the excessive
weight that has been bearing them down
and restore them to a more stable condi-
ton.
1t goes without saying that such a cir
cumstance would be OF great benefit TO
our export but this Is only
another way OF stating a fact which Is
coming to he more widel" appreciated.
that the successful outcome of the loan
negotiations will be very helpful to
American business and American values.
1t happened also that IN pronounced up
turn In foreign exchange conceded with
afternoon rumors that representatives of
our banking interests were working to-
ward a promising understanding with
the visiting finance commission. Never
theless Wall Street, which Is well aware
OF the favorable factor that the arrange
ment OF a large foreign credit loan Is
almost certain to prove, did not choose
to express ov~eroptimistic a~nticipations
In the stock market.
The share list was moro Irregular and
had aspects OF heavlness despite the ag-
gressive advances OF a few issues in the
wal order group. The most conspicuous
Of these was Colorado Fuel and Iron,
but demonstrations In this direction did
not influence any extensive exhibition
Of vigorous strength elsewhere. The
prevailing heaviness was. however. more
or less superficial. for IN adequate a
sorptive demand developed at conces-
sions. even though pressure was some
what effective. For III most part. Of
ferings seemed TO come from profess
ional operators and n portion OF the
trading element. which has been dis
posed to sell the market on the argu-
ment that II any obstacles prevented the
negotiations OF a foreign o tho disap-
pointment would IA unsettling conse-
quences in quoted values.
There was nothing to encourage 81
pectations OF insuperable difficulty In
the way OF arranging the credit opsrA-
ton under consideration except the an
%tagonistic efforts OF German partisans
and in substantial financial quarters
tltTe was noInlnk Out CpIllelIlpI lOE IN
idea that obstructionists OF the sort
would accomplish anything In blocking
q movement which contemplates only
the maintenance of tho largest possible
markets abroad for our staple conmodi.
ties and manufactured products. In
deed. financial circles are 90 confident
on this score that they expect cam
paigners against tho prosperity Of the
country to receive a surprise wher
American banking interests having Ger.
man affiliations participate in the loar
undertakings because they are clearly
designed for 10 other purpose tina "a
promote our normal commerce
In the rally in sterling exchange de-
mand bills were carried up to 4.7oL nj
the close. Franc checks made a CORE
spending recovery. selling ut 5.s7. There
have been extensive enough fluctuations
in foreign exchange lately to make
hasty deductions from any rise a little
unsafe. but bankers gave the impression
that matters were shaping in the loan
conference toward tho preliminaries OF
agreements as to the broad lines and
methods OF action at least.
In the indication hat the negotators
were considering a reduction OF the
total amount OF credit to be extended at
this time TO nearer half OF the billion
dollars that has been talked OF than
the whole amount, there was some cor
roborat1on of the idea that the plan as
finally arranged would show itself to be
beyond all question a plan to facilitate
ordinary commercial dealings. That part
Of the ultimate amount in any event
would be in the form OF an unsecured
loan TO the British and French Gov
ernments was taken for granted. but
there is a good deal NJ opinion that
much of the loan will be made directly
TO bankers In the borrowing countries.
in which case It may take partly the
form OF acceptances and partly accom-
mediation on collateral security.