Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-09-02
Pound Sterling Rebounds
From $3.50 to $4.60, Then
Rests Easy at $3.50.
BRITISH FEEL GRAVITY
OF DEPRECATED MONEY
Commission Expected Soon to Sta
bilize European Currency Quota
tions in New York Markets.

NEW YORK, september 2.-Ine Eng
lish pound sterling climbed up the lad
der of ascending values as rapidly and
dramatically today as it had plunged
downward during the week. Within the
first two hours of trading it perched
on rung only one below the point
where it rested at the close OF the mar
ket last Saturday.
With an opening quotation of $4.5S, a
gain overnight of cents, sterling rose
in value during the forenoon till it
touched $3.50, 10 cents above yester-
days extreme depreciation. Then it
went down to s4.59, where the market.
though erratic and somewhat puzzled
by its rapid fiuctua tions. was easier
than at any time during the week.
The swift upward course was inter
preted meaning that Great Britain
had awakened to the extreme gravity
of the situation and that London bank
ers had determined that sterling should
no longer be the foot ball of finance in
relations between the countries. With
painful realism the status of their
money was brought home to them yes
terday, when sterling was quoted i'll
their home markets of foreign eX-
change at s4.4s, cents beneath the
minimum posted here.
Bolster Their Currency.
Overnight London gathered up the
frayed ends and united them. and a ten
cent advance in rates at the opening
of the market. today was the result.
Some inkling of what was happening
in the council rooms of London bank
ers seeped through the cables to this
city late yesterday afternoon when the
tone of the market here became more
cheerful. The reason. not then ap-
n htyr,s dow, f1yyf Il %
day. Great Britain was tired of pay
ing the premium for mammoth orders
she has placed in American markets
and had come to the rescue of her de-
the construction placed by the leading
bankers here today on the upward
shoot of values.
The British ffnancers who are COM
ing here to devise way to check the
startling changes in rates and estab-
lish huge credit in some form were
thought today to be nearing this coun-
try. When the Adriatic arrived today
it was learned that they had planned
to sail on that steamer but had
changed their minds at the last mo-
ment. The understanding of some of
the Adriatic's passengers was that the
deputation would come to this city by
way of Canada. This was regarded
with keen interest by financiers here.
United States Eager to Help.
When Great Britains representatives
sit down with New York bankers here
to discuss ways and means of accom-
plishing their mission. they will find
their American associates, it was said
today, not only willing but eager to do
their part toward rectifying situation
that they view as intolerable and a
menace to British credit and American
export trade alike.
Other foreign moneys Joined the
pound sterling today on it's way to
higher levels. Francs were quoted at
5.3s. IL cents better than yesterday;
lires touched 6.4s, 6-cent improve
ment. and reichsmarks went up an
eighth of cent to SOS.
Sir Herbert Holt, president of the
Royal Bank of Canada, arrival on
the Adriatic today. said the members
of the British financial commission who
are coming to New York to effect a re-
adjustment of the foreign exchange
situation were to have sailed on the
Adriatic, but changed their plans at the
last minute. He added that while he
was not at liberty to state the definite
plans for the commissioners, he be-
lieved they would reach New York in
the near future.
From another source it was learned
that the commissioners, after canceling
their passage on the Adriatic, planned
to sail for New York by way of Can
ada.
II see no occasion for alarm in the
United States over the sudden drop in
foreign exchange, especially the Eng
lish pound steriing. said Sir Herbert.
II might say that regardless Of how
low exchange falls. Great Britain must
have the munitions of war she is secur-
ing in this country. Also ! feel con-
fident that 1.-THE exchange matter will
soon adjust itself"
Fluctuation in London.
,o>.ro> c...o, 1e.o5
LIN NDoN' september - PIN
American exchange moved up ~ cents
during the morning. The rapid fuctua
tions which marked this unusual ad-
.,,l'o ,,..,a duo ,,rircin.uv to the 1sr,
e''ee u'' ~ -,
amount OF STOCK proush' ou' ny yes
terdaT's low level. There was wide
opening, with range of 4.52 to 4.54,
y,;,b feu, huyers The amount OF dol
'l .ss.,;,,,' ,'aaa,a 81, ,,r.e tho, hn,,
49,. at....ino,, tro,, ,neratinr so tb,t
only sellers we're in the market. The
e. hefnre noon The shorts imme.
diately covered and brought down the
rate to 4.59a46o
One large American exchange dealer
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