Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-09-17
FINANCIAL
EXCHANGE RATES GREW
STRONG AND THEN FELL
p.oort That John D. Rookie
feller Would Not Participate
n Allied Loan Responsible

..,u YORK, Sept H-Foreign eN-
NC rates today reflected the progress
c1.S coes1S is being made in arranging the
49, loan for the Allies. AZ the start
...rs was an advance OF nearly IN cents
lnv..,nand sterling over the close OF last
y Y, and later in the day this was ex-
nsaea 40 2x cents. The pressure OF bills
Wy sot as great as It has been. While
~ the bankers. aside from those
., es,r mart in the negotiations for the
~ have any more details than the
p.- .r there is an underground belief
.e...sD,he loan will be arranged in some
~ so as to be satisfactory to all.
80 IN the afternoon. however, when
/. Slspatch was received from Cleveland
:. ~ effect that John d. Rockefeller in
y interview had said that he would not
ss,tclpate in the allied loan or any other
Esrs arising out of the war; rates sold
a demand sterling reacting about
s.nss from the days high. The inter-
.,su was later denied by Mr.. Rockefeller,
A., not until after the market had closed.
Irother reason for the decline in rates
80 The fact that offerings grew larger
,cward the end of the session.
waI street in general is anxiousiy
,w,ItIng details of the loan, and from
rhaf Il learned from time to time, al
though nothing Official has come out. II
4. eradually shaping itself. The consen-
M of opinion now is that the loan will
W. W. he for S, ,OOo. .OOO, 900. as has been re-
norted since the conferences between the
bankers started. but that it will be for
tust half that amount; that II will be a
iolnt obligation of the Britis hand French
covernments and that II will be offered
somewhere around 971z. One banker who
hss taken part in the negotiations said to-
day that the matter has progressed much
farther than is generally supposed. and
he said further that IL was hoped an an
nouncement could be made in the near
future. The latest suggestions learned
m the financial community are that the
loan will run for ten years and that the
rate will be per cent, the proceeds to
remain In this country. Interest will be
payable in dollars in New York, free of
al tax, and there will be no collateral.
Furthermore, there will be no distinction
ss to whether merchandise or munitions
are bought.
How will the investing public take the
loan? This is a question which is being
given serious consideration throughout
the financial community. 1t is the belief
that any offering will be well received
and that there will be no difficulty in dis
posing Of It, though the amount. IL it
should be $500, 1900. is a stupendous sum.
The loan, in the opinion of many, must
be made for the good of the country. We
stand to lose nothing, with everything to
gain. We have plenty of money here to
float loan, no matter If IL should ulti-
mately be a billion, and the money, 1t
might be said, will never be missed.
In the stock market today the war
specialties continued to monopolize atten-
ton. with General Motors in the fore as
the result Of the declaration of the cash
dividend of $50 a share on the stock by
the companys directors at their meeting
late yesterday afternoon. On the opening
sale the stock started with an overnight
gain Of II points. and this was stretched
to 8 points within a very few minutes
Because of the strength in this stock in.
terest was focused in the Maxwell Motors
group, all three Of that company's shares
being strong and Showing good advances
The closing found the market irregular
General motors lost some 12 points of its
gain.
As has been the case for some time
now. there was very little done in the
railroad shares. There are many who
believe that these shares are due for a
rise The opinion is based on two things:
First with the big loan arranged for
the Allies the foreign liquidation, which
mas been almost entirely confined to the
Ialroads, will be over. or at least 1t will
be reduced to a minimum, as this sell.
ing has been carried on for the purpose
o. stabilizing foreign exchange rates
secondly earnings for the new hSca
year are showing up well and sho, ilo
continue to improve, being helped by the
Detterment in general trade conditions
anu from the movement of crops.