Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-10-08
FOREIGN EXCHANGE
SITUATION IS NOW
IMPORTANT FACTOR
It Is Admittedly Complex,
But Gold-pool Activities
Will Undoubtedly Return
1t to Normal

Dealings in foreign exchange continue
90 hold the most prominent place in the
financial world, but the situation is a
complex one, and many of its features
cannot be explained by even those houses
making a speciality of foreign exchange
business
There is little known result of the oper-
hticns Of the exchange gold pool Sales
by the pool since last Friday are said by
members Of the committee TO have been
only moderate, but they insist that IL
would not be bdsinesslike to announce the
extent of its transactions, as then the
daily depletion of its resources could be
easily measured. Foreign exchange deal
ers held to the view early in the week
that 4.95 would be accepted as a basis
for exchange transactions, as they as
sumed that sales at that rate could be
Offset by gold exports If necessary.
GERMAN EXCHANGE DULL.
They took this position because of
theory that with 4S9 the gold shipping
point in normal times, the additional IN
surance, stringent money conditions and
ically moved up the shipping point IN
495. We have already passed those fig
ures however, even in the face of a free
supply of commercial bills
There is no demand for reichmarl,s OK
cept that which comes from the desire
10 relleVe friends and relatives in Ger
many. Speyer &c Co. report that tbov
are kept busy supplying drafts for 1O01
marks to numerous buyers for this mr.
pose, but the aggregate of this demand
Is not large and Berlin exchange is hard
10 sell The rate has already dropped
from % to u, and it is known that a
large amount Of Berlin exchange is con-
stantly seeking n market here.
U. S. STEEL SITUATION.
Without regard to the offers in the
phantom market on the new street curb, |
1t Is a fact that United States Steel com
mon Is being pressed in large amounts at |
materially under the closing prices on |
July 20. Large blocks of the stock are |
openly offered, although statements arc |
Iilaoe IN stock Exchange circles that bids |
are on hand, good until Cancelled. at re- |
cessions OF only two or three points
This pressure has attracted Increased
attention to the dividend outlook for the
STOCK. No definite statement can be ey-
pected to come from the officials as to
what action will be taken at the meeting
on October q, but it is insisted that the
matter will not be decided until tho last
moment, and because of this intimation
the belief is gaining ground that unless
the industrial situation improves mean
while dividend payments will be at least
deferred. There is n decided looseDing
up in the monetary situation.
western money is offered over the vear |
mere at : per cent, and there Is a good
zeal Of bank money seeking employment
either in shOrt-term maturities or loans
at 6 per cent, with offers to loan con-
hned to first'r.css borrowers.
DEMAND FOR SHORT TERMS.
The only &c securities market in this
city is that in maturities of less than one
year. Am1lgamated Copper notes, due
April l, are 80 bid, while PENNSYLVANIA
3l3s, due October l next, are 97la bid.
There is good demand for these issues,
coming not only from institutions, but
from individuals as well, and trading in
these maturities has assumed such pro-
portions as to be a helpful factor in bank
Ing operations.
There is also a good demand for first
class bonds from many quarters. ,