The Birmingham age-herald., 1915-09-04
THE F|NANC|ERS OF ENGLAND RALLY IN THE SUPPORT OF POUNDS STERLING Temporary Loan of Between S5O,OOO,0O0 and $1OO,OOO.- 900 Said to Have Been FlOated
ENGLAND EXPECTED
 TO NEGOTIATE FOR
 $1,OOO, 100000 CREDIT
American Bankers to Be Called Upon to Cooperate in Floating Loan With Bonds of Collateral

l O' VI cCpNCmOef Ss-AH indi-
 cations today tended to confirm re.
 port current in Wall street thnt Grea,
 brftntn had borrowed from $50, ,OOO. .OO(
 to e1OO,O0O.0OO temporarily In thi,
 market to correct the exchange rate
 on sterling until her commissioner l reach New York and consummnte ne- gotintfons for much larger credi, loan here.
 There was neither confirmation nor de- nial of this report which says the col lateral on which the loan was issued ag- gregated the approximate figure of the sum borrowed. Two shipments of col lateral totallng about $55,000,0OO were brought from Great Britain to Halifax aboard British men of war and shipped thence to New York with about $40.0o0. : GOO in gold within the past 90 days. Two other bundles of securities were said to have been brought here yesterday aboard the liners Adriatic and St. Paul.
 This loan. If made. was regarded as only makeshift to clarify the surcharged atmosphere of the foreign exchange mar kets Spurred by an unseen stimulant rates rallied in spectacular manner to- day. sterling soaring 10 cents or more at the opening of the market. They fell back later. but on the days transac- tions substantial gain of 3th cents was recorded Sterling closed at s4.6e.
 Half Billion Needed
 Estimates of Great Brtain's needs here in the form of credit placed the sum to- day at minimum of $500 OO0,00O with twice that sum mentioned as an outside total. billion-dollar credit loan would not it was thought. be raised on one huge fss,ie.. But q $5oo0oo loan 1t was thouglit, might be fioated.
 To furnish this staggering sum, it was said bankers of all the chief cities of the country would be called on to partic- ipate. Boston. Philadelphia, Chicago, Pittsburg. Atlanta-in fact, all reserve centers and some cities where there are no reserve banks, would be placed before them. and they would be asked to con tribute their share to insure uninterrupt- ed continuance of Americas export trade.
 Whether Great Britain could furnish America enough securities at present to serve as collateral for this big loan was another question considered. It was thought that should she not be able to raise this sum, Canadian and South American securities-government bonds and even high-cass railway bonds-would be thought sufficiently stable to serve as collateral.
 This raised a question: Would the con- troller of the currency sanction loans by national banks on the bonds of South American governments, and, to go fur ther, would such loans be sanctioned where high-grade South American railway ponds were offered as collateral?
 There is no market for these issues, and t was pointed out that under present they would have to be sold in | London The opinion that official sanc- ion might be withheld on loans of this l seemed to prevail
 All this, however. was surmised Today's recoveries in rates were at | .ributed by leading bankers here chiefly | 0 normal return to real value from fic- | tious low prices. Closing quotations on | sterling were 4.66; on francs, 595: on | SOL. and on fires GAS
 London Gratified
 London, September 3.-American flnan- ,ial houses in London were highly grati- | led at today's upward bound in OK 'hange which they construed as indicat- ng that the recent decline had reached i he bottom. The consensus of opinion vas that the suddenness of the fall and ! If the recovery showed the drop was the 1 esult of speculation.
 It developed today that leading fnan- Hal interests have held daily sessions of | ate to formulate remedies for exchange | difficulties. but that these were discon- inued on the sailing of the British com nissioners for New York. as future rem dies are committed largely to their care The main remedy proposed during the re- ent sessions was heavy shipments of | old. but American financial representa- ives urged that the United States did not | wish flood of gold. This caused some erlexity, one of the participants in the onference remarking:
 They ask us to propose a remedy and vhen we do so they don't want to accept |. Therefore the next move is with them n proposing a remedy
 The manager here of the Equita ble rust company pointed out today that the eeent heavy decline in rates was largely n paper, as people had stopped doing usiness. He hoped, he said. for steady improvement, but considered 1t premature 0 assert that this was assured
 The manager of the Farmers Loan and rust company said that one cause of to- avs recovery was that. people outside he speculating class had concluded to efer payments until the situation had improved and this caused such a falling if of business at low rates that they loved upward to level which would at -act business. He and others expressed he belief that the worst was over. All aid they looked forward hopefully to the rrival of the French and British ,om- lissioners in New York.
 
 MEvTcANs FIRE