Evening star., 1939-03-25
War Risk Insurance
Rates Are Boosted
In New York
Underwriters Follow
London's Leud on
Increase
8y the Associated Press.

~ the Associated Press.
NEW YORK, March 25.-War-
risk insurance rates on shipments ii
Europe will be doubled and tripled
beginning Monday, placing them at
the highest level since last Septem-
ber's war scare.
At that time, Immediately pre-
eeding and following the Munich
conference, shippers had to pay from
So to S. per 500 worth of goods
consigned to Europe. For the last
several months, however. the basic
rate has been 1917 cents per $l00
value.
The newest increase was decided
upon today by group of leading
American marine insurance under
writer's. following information Brit
ish underwriters had increased their
war risk rates.
The higher British rates were ap-
piled particularly to shipments on
long voyages to European waters at
deferred dates.
Rates from Australia, New Zea-
land. the east and west coasts OF
South America and South Africa to
Europe were doubled to 10 shillings
($2.34) for each f100 (s468).
Planes Unknown Quantity.
The rate on voyage to Atlantic
ports in the United States and
Canada were fixed at 2 shillings
pence (58 cents. compared with
eastbound rates of 5 shillings ($1.10
per s1OO. Rates to the Pacific Coast
of the two countries were increased
to double this amount.
1--WE base our outlook purely on
experience" one New York under
writer said. I'VE have learned
that the main destruction to mer-
chant shipping occurs early in a
war, before defense measures are in
operation.
THE unknown quantity at pres
ent is just how effective bombing
planes may be. The convoy system
proved a defense against subma-
rines in the World War, but aerial
bombing didn't amount to much in
those days Consequently, this un-
proven factor adds to marine in
surance companies worries"
Meanwhile, gold shippers had to
pay premium insurance rates to
get large consignments of the metal
on fast liners sailing from Europe
for the United States. Some of the
biggest shipments in months were
reported headed for New York in a
shift OF capital and monetary re-
serves.
Private Capital Shifted.
Over the week end, British ad-
vices said. s93,OOO.OOO or more in
gold probably would be slowed on
vessels bound for this country.
Federal Reserve figures showed S92,-
100000 added to the Nations i'm
mense supplyin the past week in an
acceleration of the movement since
the latest European crisis fared.
The increased transfers raised
Wall Street curiosity as to whether
England, The Netherlands and
other nations were moving reserves
for possible use in purchasing food
stuffs and war supplies. The Meth
erlands and Switzerland already
have sent part of their monetary
reserves here, banking circles un-
derstood. In addition, a heavy shift
OF private capital to the United
States seems to have been under
way since the Munich pact last Sep
tember, augmented by transfers of
exchange to pay for the excess of
merchandise purchases Europe has
been making in this country.
A substantial part of the incom-
Ing gold was believed to be entering
"earmark" at the New York Reserve
Bank to be held for foreign owners,
presumably central banks. Upwards
OF S800.0OO 900, record figure, is
under "earmark," banking figures
indicated.