New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-10-24
GERMAN EXCHANGE
IN FURTHER DROP
Little Demand for Credits Good
for Mark Payments in
Germany.

German mark eXchange-that Is,
drafts sold here good for payments Of
debts in Germany-fell yesterday to
the lowest price recorded in years. For
weeks there has been a more or less
gradual decline in marks. but lately
the downward movement has been ac-
CELEBRATED. Yesterdays drop was the
most abrupt that has yet occurred
Marks are quoted at four for so
many cents. In normal times the price
ranges around 95.2 cents, being higher
when German bankers owe this coun-
try but little money and lower when
the contrary is the case When marks
are selling around "a it is theoretically
cheaper for German debtors to this
country to send actual gold here than
TO buy exchange for their remittances.
They have to pay four marks for every
"a cents worth Of New York funds, in
other words. where. with conditions
favoring them, they might have had to
pay only that much for 80 or 90 cents
or more.
just now Germany is reported to be
heavy buyer of all sorts of goods in
this country, principally foodstuffs and
materials of war. At the same time,
American merchants are buying almost
nothing in Germany, and so there is
little to offset the debt she is creating
here. With no debts to pay in Ger
many, American merchants have no use
for credits available there, and bankers
who have them for sale are consequent
ly at loss tc find a market for them.
Some o. the best known banking
houses in the Wall Street district with
German affiliations have lately been
Offering their credit balances in Ger
many for sale here at considerable
less. In some quarters it was said yes
terday that it would be comparatively
easy matter 70 get as much as l,OOOOOO
marks of German drafts at STR or 90.
AS IL was, the market for smaller
amounts closed yesterday at 81, nomi-
nally, though it was reported that some
transactions had taken place one-half
cent cheaper. Foreign exchange
dealers look for a continuance OF the
downward movement. since there Is ut
tie likelihood. in view Of Germany's
commercial isolation, OF there oelng
any chance for her to export goods and
3 80 create credits in her turn. One OF
them said yesterday that If the war
lasted another six months, with the
British navy dominating the Atlantic,
/ il would not be surprising to sec marks
at half their present prices.
/ Sterling exchange was also notably
lower Yesterday. though still more than
/ six cents above what is normally the
gold export point. At present, IN tact'
/ gold is at a premium of nearly per
cent, being kept in this country only
/ y the inability Of would-be remitters
to pet a sufficient supply for export.
Yesterday cables were quoted at the
close at 4.94% and demand checks at
4.937s and francs at 51O-5 l-lO Tor a
dollar.
Bankers said of the decline in the
sterling exchange market that the sup
nlv of bills. particularly Of those drawn
against exports Of grain. was ihcre"s-
inc rapidly, and that cotton bills We're
coming forward in good numbers
There was a large demand from mei-
camille debtors early in the week Tor
Exchange with which to meet their long
hills i'm London, but this ended sud
denly. and thereafter the supply OIL eH-
change seemed to double.
There was pretty good amount OF
dealing in dollar exchange, but the
totaI Of international transactions that
sye being cleared through New YORK as
,,et ofFers no strong challenge 20 Lon
don's supremacy as the worlds money
market.