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Show LONDON SEEKS TO HOLD EXCHANGE London, Aug. 16, 4:40 p. m A strong effort is being made in important impor-tant financial quarters to have the government issue a large amount of short-term hlghrate bonds, to be placed plac-ed on tho American market as a means of relieving tho present low rate of English exchange. The exchange ex-change rates continued downward today, to-day, at one time touching the lowest known record, 4.67 1-2. This caused unusual activity In the exchange houses on Corn Hill, and when an Associated Press correspondent made Inquiries of Marshall & Sons their reply was delayed, owing to tho closing clos-ing of negotiations for $160,000 exchange ex-change at 4.67 1-2, which was tho lowest low-est they have ever known. George Clare, head of a leading exchange house, told the Associated Press representative that In his opinion opin-ion an Issue of short time bonds at an attractive rate for the New York market was the best solution of the situation and he believed it would have to be adopted, Hia cable reports re-ports showed that the exchango rate opened at 4.70 1-2, as against Saturdays Satur-days closing hero at 4.72. Toward noon it declined to 4 GS and fluctuated around there throughout the day Mr. Clare pointed out that tho remedy found In selling American securities held hero had been practically exhausted. ex-hausted. He estimated that these sales had reached 4,000,000 pounds (?20.000,000 weekly for some time nnd had aggregated about 100.000,000 pounds ($500,000,000), which was about all tho relief feasible from that source. "The best course now," he said, "Is one I understood is under consideration. considera-tion. It calls for the issue of a foreign for-eign loan, primarily In New York, at such a rate as to be attractive to American banks and investors Probably Prob-ably 5 per cent two-year bills, free from income tax, would appeal strongly strong-ly to big American investing concerns, and It would be the first time on record that Great Britain has placed a loan in a foreign country, and this may raise the question of dignity, but Germany, Japan and other countries have placed such loans In New York and the time has come when we should do the same as the surest means of relieving the abnormal situation sit-uation growing out of the adverse balance of the exchange against us " The house of Morgan, Gronfcll &. Co referred inquirers to Marshall & Sons and Mr Clare, but tlioy also stated that a means of relieving tho exchange situation was understood to be under consideration either through a loan or by tho placing of a big credit in Now York, as advocated by E, F. Davies, chairman of tho committee commit-tee of foreign bankers on exchange problems. Mr. Davies said today. "I do not consider dearer money here will solve the exchange difficulty diffi-culty " The Bank of England announced that 1.S00.000 pounds (9,000,000) in foreign coin had been allowed to go out today, which is taken as an indication indi-cation that the government now is willing to allow gold to go out as a measure of meeting accruing balances. bal-ances. on |