New-York tribune., 1919-07-17
Syndicate to Advance From
$3O,OOO,O 900 to $40, ,OOO,-
600; Denmark to Get
Credit Here Soon
Sterling ExchangeSlumps
Rate for the Pound Drops
to New Low Level; No
Plans for Support

Negotiations for a loan of between
$50, 100000 and $4,000. 900 to the
Swiss Republic through the sale of
bonds in this country have been vir-
tually completed, it was reported yes
terday. The syndicate which will un-
derwrite the issue consists of Lee,
Higginson & Co.; the Guaranty Trust
Company and the National City Com
pany. Members of the syndicate de-
'clined to discuss the offering. 1t also
was ascertained that Denmark will
soon get credit of approximately
$16,000,00O to finance the purchase of
goods in this country.
These foreign financial operations
ordination of Americas lending re-
sources were formulated, and merely
touch the outer rim Of Europe's needs
for funds. Bankers became further
Impressed yesterday with the necessity
OF constructing a new international
credit mechanism by the drop of ster-
ling exchange and francs to new low
levels for all time. Sterling cables at
the close of the days trading were
quoted at S4.32 and the dollar would
purchase TIP francs.
point stimulated the decline, which was
accelerated by offering of bills against
grain and cotton of which Great BRIT
ain and the Continental nations were
heavy purchasers in this country. In
Well-lnformed circles it was said that
the British Treasury has no plan to
correct the position of the pound.
British economists insist that the
movement of rates is matter for
Americans, rather than the British, to
worry about. Leading bankers de-
clared that Great Britain could with
out question get a loan in this market
merely by requesting it, but that thus
far no Inquiries had been made. Inter
national bankers denied the likelihood
of the shipment of gold to this coun-
try for British account
Although differing as to the wisdom
of certain details of the proposals,
bankers, whose opinion was sought,
agreed that Senator Walter Z. Edge, of
New Jersey. who introduced a bill
Tuesday under which it would be pos
sible to form one or more huge Amer
lean corporations under a Federal
charter to provide for exporting Amer
lean goods on a huge scale, showed
genuine insight into the needs of the
international financial situation.
Bankers closely associated with Henry
+. Dawson, of ]. P. Morgan & Co..
under whose leadership plans for the
formation Of a giant corporation to
finance Europe's purchases in this
country have been developing, said
that the Edge bill was not inconsistent
with the programme they were pur-
suing, inasmuch as it was still tenta-
tive and confined to broad principles.
In response to query as to whether
the capitalization of the proposed cor
poration would be $1OOO00,00O, a we'll
informed financier asserted that it
would probably be much larger; that
the capital Of the suggested corpora
tion would undoubtedly be one sixth
as large as the amount Of it's deben-
lures. WHICH would be offered to the
public against advances that may be
made to European countries.
The bankers foreign programme is
not progressing rapidly at this time.
In some quarters it is believed that
the financiers are waiting to lay the
plan before the Administration, whose
moral support is wanted. The Edge
bill provides for Federal supervision
for such corporations, and some bank
ers, frankly said that they believed
ularity of the bonds that may be cred
tied for public Offering.
Exporters are especially concerned
ct the movement of the dollar to an
unprec edentedly high premium on Eu-
rope, believing that if the tendency
goes unchecked point will be reached
where foreigners will be unable to
purchase goods in this country. The
movement of rates in favor Of New
York in effect adds to the cost to the
foreigner of American merchandise.