Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-18
FOREIGN EXCHANGE
MARKET DROPS TO
4 NEW LOW LEVEL
Rates Again Collapse, but
I ate Recovery Develops.
Decline Imparts Greater
Strength to the Financial
Situation.

tber collapse in foreign eAcilahSe
aao was the feature of TO-DAY trauiIls,
prtces touched the lowest 1 lesSi ,,ea ia
fIie. fI r.urone began its general war anu
sLI'e os,,It was to impart to the Market
the rar Les feeling of confidence than has
os arnarert for many weeks.
peen pnri,, IN the trading the market pc
- erratic and rates broke as low as
,osst IN 493 for demand sterling ana 4'o'
As455t ooy Tor cable There was later re-
70 As"4 boycver. the advance pushing up
eVe.ydi sterling to i.9iA to 4.95 ana
on,os oe,l" n 95M to 4.9G. There was active
4 e'...tno from many investors at the low
heunvy, hesmcccssful financing of New York City,,s
.orsipn debt and freer offerings OF COT
tOn and grain bills influenced, III a large
n,sure WI the drop in exchange rates
niTas Tt.opo ia reason to believe that within
novt few days the exchange market
' Ii oegurne fairly normal proportions
aon WIZ news Is more optimistic and the
,Sonroye,nent there has been one of the
most notable features of the whole hnan-
n,si situation. There still continues tan
Of reopenng the Stock ENcnahse therc'
ond conferences are daily under way be-
smson English bankers and brokers and
the government representatives looking to
Il snne carly action along this line In view
q 81 recont French and English successes
m the European battlefield. French
i treasury bills are being offered In London
4 on a pcr cent basis, and are reported
on 80 haen tal,en. freely at this figure.
TO have oeeh '"Ne'' tiee'' 81 '''''
LONDON SITUATION IMPROVES.
Another evidence of the Improvement
4 abroad is shown in the weekly return
i of the Bank of England, which has Just
Sssn Issued. and which gives the proper
t,on Of reserve to liability at 2l.1S per
cent. This represents a gain of s per
cent. as compared with the reserve as it
stood at the outbreak of the war, and
an Increase of about liz per cent. over
4 last week The institution has added
4 pO55 Oo2 to its reserve during the week,
and $1,000 600 to its bullion holdings, while
there has been big contraction in
loans. other securities showing a decrease
i AZ SIS 65OOO0 There Is a net falling off In
deposits of $7,0OO,00O. decrease In cir |
euiation is noted of 1895, 600. This finds |
1 typlanation in the contraction in trade |
and restricted expenditures in different |
4 directons
4 There was good attendance of |
s brokers in the London financial district |
+ 80, but trading in securities was not |
8 Srisl; Gilt-edged investment issues were |
feIess as brokers are not willing to |
,ake risk of advising clients because of
srod nrices Australian mining issues
hardened on the announcement that the
svdnav and ADELAIDE Stock Exchanges
would he rcopened on Monday and that |
,be exchange nt Melbourne would resume
= business shortly.
An issue of R2.OOOOOO sterling Sac
paoIo RraziI. notes matured today.
i Metropolitan Water Board bills to the
amount Of el'OOoOoo were paid for'
Sail loans NJ In ,.. ~ ,+ n A.
@ Ln'ee 'ooo I,i.,i 4,l,ss1,,t hiIIs
sSt IsSre " ac, - I,,,1,,,,,a,
VIII oe olteFt" iIcNt Neuiiesu"S' ~ . ~,
lhailks 10 an lttProNtI'l'ilt III tne ~
IVpeah wa SIt"''io.'' ""o "a i7otS ~ -,
reported VICTORIES oL .ile an'eS vaSir u'tS
M.nssses an eas,it up ~ ,., -.
,re no ntinnetI, dosirn 70 GOT into
;bo ,rn5;r, tn, &; h,.oodo,. die
,n.tion - I,,,. ,t,loi,- rrbis is orroron+
i 4 tbe incres si,o nmn,ber of daiIv sales
IN the narl.et hern and in New York
ssc,rities tLot inst vel, cou1d erd M
taksrs boca,so or IN irlifforont dep,and
are now helm hid bipher ouotations
maintain STABILITY which is surnrisinp to
Investment brokers and th,, sit,iation on
The whole Is considered In general good
shape.
A meeting was held in Washington
today between bankers and special
committee, appolnted by the Federal Re
serve Board TO report on the advisab bility
Of forming a $50. .OOO. 600 gold pool to re-
lleve the foreign exchange situation. The
general belief prevails that only a small
amount of this sum will be actually
needed. but the fact that 1t is proposed
! 10 make such a large sum available is
expected to aid materially in the further
reduction of foreign exchange rates
Prc Io,>- o,,,,,e.r,r,,,,,r,,r,
4 piu LOAN ONERSu uBSCRlBED'
An announcement from New York this
sa.ern9on saDlID, sald that there has been very
general demand for the unallotted portion
rsrt t's r,, Srvo,uVo,'ou .Ee" ork city . per
yoat a.' rotporate CORPORATE. STOCK and TWO ana three
, ssaI revenue bonds, and that the loan
4 CIV Can'ntl unGouO'euIy ne oFersubscrlped.
,ra O'potHt.oh sI ana ihdlVldual investors
S.e iahlhs extensive accounts of the
he 6v" . issue. NO iigures were given out
amonnt .? ,u'rale C;t managers as TO tlie
Know known that subscriptions were coming in