South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-07-17
WORLD CALLS FOR
NEW YORK MONEY
All Nations Knocking at the
Gotham Banks for Loans
Of Various Sums.
RH Henry CIcws.

NewsTimes Special Service.
NEW YORK. July 16-The most
significant event Of the week was the
rise Of the Bank Of England rate
from 20 8 per cent. This is the
hrst advance since August 1914, and
was evidently intended as protec-
tive measure against the possibility
Of higher interest rates and adverse
sterling exchange in New York Next
IN importance came the announce
ment OF a new 100000. 1000 French
loan on a 3 IL per cent basis.
Reserves Of the New York banks
declined from over 100000, 600
since last autumn TO about $4,000
900 last week. the lowest total since
the new banking system waG inau-
guTated This week the banks gain
ed considerably through receipts
from the interest the federal re-
serve operations and sub-treasury
payments In Jew of the many
prospective demands upon American
banking resources the money mar
ket IS in an interesting situation.
The usual crop demands viii soon
assert themselves. but will be easily
care for and are Of minor import
ance compared with other imminent
demands War has made New York
the leading open money market Of
the world. IL is the only market
where all nationalties can freely
come. Hence the belligerents. and
especially th allies. have done a
considerable proportion of their
financing here. The placing of huge
munition orders in this country has
also contributed enormously 10 the
financial prestige Of New York At
this center the fiscal arrangements
Of the allies were usually made and
carried out; from this port the bulk
of American exports were shipped.
and in this market the credits loans
and bond issues connected with the
war were necessarily made. Hither
came the immense quantities of gold
and securities sent 20 help payments
for munitions. and here further big
transactions Of the same sort will be
consummated at least as long as the
war continues The expected French
loan has already been announced.
Another British loan, possibly in the
form OF short term notes. is almost
Inevitable: while Russia. China.
Canada and Argentina are all knock
ing at our bank doors for financial
aid. which will very likely be rem
dered. Big demands are evidently
pressing upon our banking esources.
which are fortunately ample Yet
the difficulties are sufficient 90 call
for skillful handling on the part of
our hnanciers. for our banking in
stitutious have frequently AN the
loans outstanding upon foreign own
ed American collateral that they de-
sire In the last few weeks about
SIO0.OOO.O0O in American securities
and S150.000.000 gold have been i'm
ported i'm payment for munitions and
20 assist tn keeping down interest
rates which, If materially higher.
would operate adversely upon sterl-
ing exchange and render British
operations still more costly. AT this
iuncture come i'm the operations Of
the United States treasury. which is
just now enjoying unusually large
revenues, its receipts I'm June being
over 100000. 900. or 100000. 900 i'm
excess Of last year During the
same month receipts exceeded dis
bursements 10y 100000. oOO-a very
satisfactory condition from some
points of view. But passage i'm the
house of the new bill intended 20
increase public revenue about $780,
600 600 20 meet preparedness plans
makes 10 appear that excessive tax
alton and excessive revenue are paw
ing the way for "a new era OF ma
tional extravaganza Still another
new question affecting the money
market has been introduced by ac-