New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-09-06

Nee0 OK 3eS0rrlng TO fe1und1nR loan.
France, which waited longer to make
its arrangements. now has completed
its plans for taking care Of tho bond
holders. The flow Of gold has already
started and, according to reliable esti-
mates, may amount to as much az
ST., 600. Perhaps an equal amount
Of dollars will be available as o result
Of purchases In the foreign exchange
market through the sale Of sterling
and francs. The difference will be
made up by O new loan to France, the
terms Of which will probably be made
public tomorrow.
The effect Of the large expected in
fux Of gold, which will be much larger
than had been generally predicted, on
the American security and money mar
kets, will be watched with much inter-
est. The stream Of the yellow metal
from Britain earlier in the year kim
died the imagination Of operators in
securities and created q measurable
improvement in sentiment. Coming at
q time when the banking authorities
were making collective effort to check
loan expansion, the British gold was
not used as the basis Of new imitation
and it Is unreasonable to assume that
the French gold will be. On the other
hand, the added treasure which goes to
the vaults Of the Federal Reserve Bank
will widen the margin which keeps the
institution above its reserve require
ments. From the American point Of
view, the flow of gold in this direction
will be regarded solely as a construc-
tive factor. 1t may, while the specta-
Gle Of incoming ships is attracting pub
lie attention. act as moving influence
in the various financial markets.
The depression Of the European ex-
changes during the summer has been
in no small measure due to the opera
tions Of Great Britain and France in
the foreign exchange market in con-
nection with the Anglo-French matur-
ity. Great Britain Is through having
BALANCES in this country, it is under
stood, in excess Of its needs on the day
the loan natures. France has COM
pleted its program and exchange oper-
ators are watching eagerly for signs
that France has completed executing
it's plans in the exchange market.
Through gold shipments and purchases
Of dollars mainly France must raise
$150,000,ooo, and purposes to refund
500, 100000. AS soon as France is
definitely out Of the market for dol
lars the European exchanges ought to
fare better.
There are evidences Of a slump in
Americas export business particularly
in the inactivity that prevails in the
foreign exchange market. "Slackening
in the volume Of export buying has
become moro marked in the past thirty
days." says the Monthly Review Of the
Federal Reserve Bank OF New York.
"Some important exporters say that
within this period what has been
sellers market has become a buyers
market. Instability Of prices has made
buyers hesitate. Some markets have
been overbought and reports Of con-
gested warehouses abroad are not in
frequent. In number Of lines goods
sold have been turned back upon the
market in large quantities. Renewed
weakness in the foreign exchanges and
the unsettling political situation in
Europe have restricted purchases, and
some countries, particularly those in
South America and the West Indies,
have been affected by the depressed
condition Of the markets for wool,
hides, rubber, sugar, coffee and cocoa.
Credits are becoming more difficult to
arrange, due to money stringencv in
all countries. AS Transportation con-
ditions in this country have improved.
exporters now are bending their major
efforts to hasten deliveries Of materials
already contracted for"