Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1915-09-02

change rates, led by the English pound
sterling played fast and loose today
in checkerboard moves over the lowest
plane of values ever reached In this
country.
From extreme depression of $3.50
registered at the opening of the mar
ket, sterling made it's faltering way
by leaps and falls to $4.55 IL in the
late afternoon and fell back at the
days end to $4.54. Francs dropped at
a single stroke from sos to sos, reach
ing their lowest value. Lires hovered
around 6.54. approximately 26 per cent.
below their normal worth, remaining
there because they virtually amounted
to nothing in the days dealings. Reich
marks zigzagged between 80 S-S and
so 5-S.
Market in Commissions.
The entire market was in convul-
sions throughout the day, although the
tendency toward hysteria lessened
toward the close. The big bankers OF
New York, however, were inclined to
calm rather than Mysteries. One for
eign exchange expert asserted tonight
that he doubted If 10000 pounds ster-
ling had been bought in this market
today. The widely divergent quota
tions at the opening and the close he
ascribed purely to spectators. This
view. however, was not generally ac-
cepted and there were indications that
there had been large dealings in small
amounts after sterling had strengthen
Report Of Relief.
For reasons, not seen on the surface,
optimism was more apparent tonight
than analysis of the situation seemed
vailed that relief was in sight It was
said that the delegation of British
financiers and treasury officials sent
here to mend England's battered cred
- s-~tSM 80 low@1
The blue pencil of the censor has cross
ed out all news from abroad of their
sailing for New York, but it was
thought they might be found aboard
the American liner st. Paul, due to
dock here tomorrow.
Press Cables Censored.
The censor, according to mail reports
from abroad sent to newspapers here,
has been greatly interested in the for
cign exchange situation recently. Press
cables, according to these advices, have
been held up and edited to eliminate
references to weakness, and in some
instances. it is said, actual quotations
have been deleted. Incoming des-
patches, it is reported have met much
the same fate. AS a result, it was re-
ported, high British officials were but
poorly informed of the situation.
Discussion of Remedial Plans.
There was less talk today of the pos
sibility that rates would fall so low as
to result in curtailment of American
exports. Discussion centered on Great
Britaifl's remedial plans, none of
which. New York bankers profess, is
known here.
Loan and Collateral.
In the absence of these plans. it was
assumed that the contemplated credit
loan to be established here would be
of such proportions that it would be a
national rather than a New York af-
fair in respect to participation Bank
ers from all the reserve centers of the
country 1t was said, would be invited
to share in establishing the loan. The
colloteral, 1t was said, probably would
consist not only of approved American
securities, but also of carefully selected
Canadian and South American bonds.
In addition to this collateral, bankers
here plan to have the British borrow
ers' cover ii with an issue of notes,
thus doubly riveting the security.
Study of Abnormal Conditions.
From the betterment in foreign ex-
change rates. attributed by some au-
thcrities to the fact that the decline of
yesterday and today's early market has
been too rapid, ffnanciers turned to a
study of the abnormal conditions Gre
ated by the situation. Investigation
showed that it teemed with unusual de-
velopments.
Different of 81 in Market and Money
Orders.
Not the least of these was the dis
covery that of all the American insd-
tutions sending money to foreign
countries or receiving 1t from abroad,
the United States government alone
could not profit by the low rates, at
least so far as international money
orders, issued by the postoffice depart
ment. are concerned. While the Eng
lish pound was selling in Wall street
at $3.50. the postoffice, several blocks
away was paying the standard normal
rate of $4.S7. Senders of money orders
to England had to pay $4.S7 to the
pound; recipients Of money orders
from England were given that sum
here
The same situation prevailed at the
postoff1ce SO far. as other foreign mon
eys were concerned. Lires, deprecated
26 per cent. in foreign exchange mar
kets. were exchanged at par over the
money order counters at the postoffice.
This was due, it was said. to ancient
treaties which fixed in rigid terms the
exchange values Of money between the
United States and it's associate pow
ers in the issuance of postal orders.
The limit of any one order, however,
was 800, although there was no re-
striction. within reason. as to the
number issued any individual
Situation Last Year the Reverse.
The situation last year was directly
the reverse, Exchange on sterling
scared to about 81 at the time when
American tourists, stranded abroad
were seeking funds. One enterprising
individual. 1t was reported. knowing
that the postal rate was S4.s7. hired
clerks and sent them by relays for sew
eral days to the postoffice to obtain
500 orders These, orders. on which he
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