ABSTRACT
The effect of the raising of the loan has been to enable the Brazilian municipality to pay for the British manufactures it requires by utilizing British credit facilities. The creation of loans will favour the exchange of the debtor country. The payment of interest will favour the exchange of the creditor country. In the case of the loans made by the merchant bankers and the accepting house, the period of the loan would be relatively short, and the loan known as a short-dated credit; in the case of the bonds, it would probably be a long-dated loan. The floating of loans and the giving of credits was the means whereby Britain assisted her allies financially during the war, and whereby the US assisted Britain. Connected with the subject of the influence of international loans on the exchanges is that of the relationship between the stock market and the exchanges.
