The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-23
STERLING STEADTER,,
MARKS GO LOWER
Heavy Buying on Account Of
City Loan Forces London
Exchange Up.
GERMAN CREDITS DROPPING

Sterling exchange, as compared with !
the previous days of this week. was
fairly Arm yesterday. demand closing at
494A, unchanged from Wednesday. |
while cables closed at 4s6%. against |
te5h. Francs were slightly frmer at
5osL, as compared with bosh on
Wednesday, while marks reached a new
low record. selling at eO&. as compared
with 9lL
The steadiness OF sterling exchange
was said to be due to the fact that
several banks were purchasers OF ex-
change, In order to meet the nth in
stalment on the New York city 500, 000,-
900 loan. Foreign exchange men, how
ever. were considerably cheered that the
rate did not go higher on the heavy buy
Ing OF one of tho largest dealers In sterling
exchange In the financial district. They
continued to contend that the rate must
soon 20 lower on the heavy orders in
sight for American foodstuffs manufac-
lures and munitions OF war. They point
out. however. that this country has an
enormous debt 20 work OF and that II
must not be expected that this balance
against US can be overcome In short
time.
The reports that England IL willing to
take cotton and short term notes in
payment OF our debts 20 her are generally
discredited in the best informed foreign
exchange circles. What the local bank
ers want effected in Washington II some
arrangement whereby England will agree
TO return our gold when the balance OF
trade once more swings In our favor. II
Ia pointed out that exchange rates can
no, he arbitrarily adjusted and that their
course depends on tho law OF supply and
demand.
The new low record price OF marks Is
taken az further indication that Ger
many is etrenuously endeavoring TO pur-
chase goods here even at a great sacri-
fee to her credits and at the risk OF
getting them from neutral port. The
ruling OF the British Board OF Trade that
II II unlawful for English maritime insur-
ance firms to insure cargoes destined for
neutral ports which might be transhipped
to Germany or Austria against seizure
by tho allies will do much TO hinder her
getting further supplies. Should this ef-
fectivo blockade against German trade
and commerce continue for another year
foreign exchange men hesitate to esti-
mate at what figures marks will be
quoted Ono foreign exchange expert
who has been closely in touch with the
German exchange situation eaid yester-
day that he had received an offer Of
| 1000, 900 marks at 90rs and had declined
to accept Il.
That Germany foresaw difficulties In
getting goods WINS pointed out yesterday
by the fact that previous TO the war
she took care TO store up n considerable
credit here by making money owing TO
her payable in New York instead of in
London rs IL customary.
The banks participating in the New
York city 100000 900 loan made pay
ments OF their NTH instalment at the
| offices OF J. p. Morgan 4 Co. yesterday.
| The call amounted TO $3.50, 600, and Of
| this amount s$.625.000 was paid In gold
| certificates. tho balance being paid in
| exchange. There was withdrawn from the
Sub-Treasury for shipment TO Canada on
| the account OF New York city s4.s25. 600.
! and from the Assay Office for the Same
| destination STRESS This last payment
makes n total Of 500, esS.oOo which has
! been sent to Canada in instalments In
| payment OF the city's obligations matur-
| ing abroad.