Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-08-18
PLANS ASSUMING FORM
FOR HUGE BRITISH LOAN
1t Is Hoped in This Way to Check
Downward Trend and Protect
England and Allies.
SYNDICATE MAY BE ORGANIZED
Imperative Need for Credit Of at Least
$3O0,0O0,O0O to Restore Foreign
Exchange Notes to Normal-Ship-
ment Of $4,000 Is Trivial.

NEW YORK. August 17.-out Of the
disorder Of the foreign exchange mar
kets to-day plans began to assume
loan In New York to check the down
ward trend OF rates and protect the
money Of Great Britain and her allies
against further depreciation.
After group Of Wall Street bankers
with international connections had
conferred late to-day, II was said the
situation still was indefinite and the
plans in embryo 1t was reported to-
ward the end OF the business day that
syndicate of bankers might be
formed to finance the loan. and that
the issue might consist OF one, five or
ten-ycar bonds.
BIG BANKERS ASKED
TO SUGGEST TERMS
This report furnished the only indi-
cation as to how far negotiations had
progressed. It's lack OF dehniteness re-
ficcted the general feeling that the big
bankers of the street had been called
on by England to suggest acceptable
terms OF such loan. and that negotia-
tions were in progress over the cables
TO set the foreign exchange situation
right. Until these negotiations are
concluded there will be no official an
nouncement 1t was thought significant
that the talk to-day was of a loan
whose longest issue should expire in
ten years. In previous foreign loans
the term has been short, and Ameri-
can bankers generally have considered
that investors in this country would
not take kindly to a longer term.
The outstanding fact at the close OF
to-day's exchange markets was the i'm
peratfve need for n loan of not less
than S3oo.o00.000 to restore rates to
normal There was every indica ton
that unless some action OF that sort
were taken speedily sterling, francs
and llres would be still further depreci-
ated. and the financial burden placed
on foreign buyers of American prod
ucts would be correspondingly in
creased. The exchange markets were
quieter to-day than yesterday. although
there was renewed activity during :he
afternoon.
FOREIGN EXCHANGE
Still. DEPRECIATTNG
Depreciation OF foreign money ex-
tended very near through the entire
list, embracing reichmarks and Span
ish pesetas, which fell to new low
burg and Berlin. In the opinion Of
some bankers. a great deal OF the
activity and weakness was attributed
TO the speculative operations Of dealers.
The arrival here. for Great Britain's g
account. Of approximately $4,000, 900
gold coin from Ottawa had no effect.
The amount was regarded as insignifi-
cant In the light OF Europes big OBJ
legations. This shipment took the un-
usual form OF Japanese yen.
Exchange rates opened at about yes
terday's low figures Pounds sterling
quoted at s4.64 to s4.65: francs opened
Mt 6.04 and later dropped to sos: lires
opened At $50 went down to 6b6 be-
fore the close reichmarks cables on
Hamburg and Berlin fell to 81. n new
low record: Spanish pesetns. quoted two
days ago at 1905. dropped to 1850.
The course Of the market was irresu-
lar. AT noon il rallied slightly; In tho
middle of the afternoon session prices
fell back again. reaching, In some in :
stances. their lowest quotations, but
they recovered toward the close.