The Birmingham age-herald., 1915-09-01
financiers Fear England May Purchase War Sup plies Elsewhere if Money Depreciation Continues
UNPRECEDENTEDFALL Hs POUNDS STERLING QUOTATION IS FELT
English Gold Goes Begging. Bankers Want to Lend Dollars to Foreigners on American Security

New York, August 31.-The tre- nendous export trade of the United States, in which the country leads the world for the first time. was imper- led today by an alarming drop in Oreign exchange rates.
 At the close of business tonight, the rnglish pound fetched only 4:55 1-2 n American money. This is a drop rom it's normal value, of 31 3-4 cents md from its quotation last night of
 3-4 cents, a 24-hour break without Irecedent. It marked the lowest val e yet recorded in an excited market there every day recently has set ew record of depreciation and it
 dicated that sterling was headed
 pwnward with momentum and
 ilocity that promised to take it to
 thought of levels.
 Tn the face of this rapid depreciation.
 nkers here were wondering tonight
 W much longer Great Britain woul,f
 y the premium and buy goods in this
 arket which she can get elsewhere,
 nere the value of her money is great
 They were of the opinion that
 herican factories and producers would
 Iel the pinch if rates went much low
 that cancellation of war orders for Ee'ything except what Great Britain tnaot afford to do without powde:. nd shot, rides and shrapnel, aeroplansz h. .autnnl6t ilos4- wopf1 follot ai,a hat tK1re would De few new orders laced by London in America except pr positive necessities.
 Financiers Seek Remedy
 The reason and the remedy seemed lear in the minds of international Iankers here. The English pound has Iecome depreciated. they said, because london has failed to provide method lere of paying the big bills now com ng due to American shippers; the rem Idy they thought would be to establish
 mammoth credit loan in this market. <-.-4~A 4SO NOCc AiVt Wdnt DIltl8H KOIQ D pay for supplies; on this point opin- pm was unanimaus The vaults of Wall treef and the banks in the interior re already choking with gold More old would tend to create period Of normous imitation.
 What New York bankers want to do 9 to lend Great Britain an enormous um of money to be spent in paying lills here, on approved collateral of 1gh class American railway afid iu- plstrfal stocks and bonds. This. it is lelfeved, will restore conditions to near ' normal. Apparently Great Britain in- tnds to adopt this course
 It was learned tonight that some of he biggest international banking ouses in New York had pointed out, their cable conferences to London nanciers three weeks ago the danger hat 1urked ahead and suggested a 1 curse which, if pursued, would hay l teadied the markets for month. CT Intil permanent methods of correction tould be applied. The cable message. was said. had been entirely ignoret. London Awakens
 London has not awakened to the full | " most international bankers here. The ardmess of English bankers, it Ia said, | E being paid for in British gold at l lates extremely dear. The depreciation f the pound sterling. it was emphati- ally asserted, is not costing American l one cent, for all bills sayable by Great Britain here are pay ,ble in dollars. London bankers and | suyers are paying the toll-a premium. | If more than per cent. The only bright spot in the outlook was l he probability that the prevailing rates | iFculd persuade British holders of Ameri- | m securities to part with them now nd reap the S per cent profit which thus | Fould accrue, These securities are need as collateral for the contemplated Brit | yh credit to be established here. 1t Is | stinated that there are American se- rrities now in Great Britain to the value | e.00OO. 900. A sixabIe fraction of these | ecurities. If available. would restore | ltes to nearly normal. it 10 believed.
 Where foreign money values were head
 <osstissea a Ease TweIveD