The Bridgeport evening farmer., 1915-06-02
AMERICA PROFITS AS FOREIGN GOLD
 COMES POURING IN
$5,OOO,OOO More is Received From Ottawa
 Exchange Drops.

GAS4c1A4SO O4 V kJo' 1 New York, June 2-The manner in which Europe's enormous purchases of war supplies are draining her gold l into the coffers of the United States was strfkdngly exemp1ffed in Wall street yesterday by two outstanding 1 incidents. The first wast the arrival at the 1 Sub-Treasury of another $5,6Oo,O0o in ] gold from Ottawa, Canada, for the ac- count of J. P. Morgan & Co.,, making | $15. 5.000,0O0 in gold which has been l brought into the country by this firm 1 in the last ten days. The second, and | even more remarkable event, was the 1 drop of French exchange to 5.4S E | the lowest point in history.
 This means that Frances credit in l this country has been strained to such I a point that 5.43 E francs are requir- ed to balance one American dollar in l the New York market. The par fig 1 ures of French exchange are 5.1s E, at which 1 franc is worth a trif1e more | than 19 cents in American money. The franc has now declined until 1t is ] worth only a trifle over IS cents. It \ has never been valued so low since I the New York Stock Exchange was founded.
 Predicted Gold Exports to U. s. Financial experts had figured that 1 when French exchange got as low as
 5-2O5s France must export gold to 1 this country. But the exchange has l now gone more than twenty points below this figure, in spite of the facts 1 that there have already been enor-
 nous shipments of French gold to i America and that France long ago established in London a credit of l $40, 900, 900 for the sole purpose of l financing her American purchases of | supplies.
 Just what course will now be taken by Frances Finance Ministers is not yet known, but it is evident that she cannot permit her credit in this coun- l try to fall much lower without fear of l virtual demoralization-
 The exchange market yesterday, showed plainly that few, if any, of the belligerent nations were much better | off than France, Italian exchange also fell heavily, and although it did not reach the low record of the ea1ly
 spring, when Italy was straintng ev-
 cry nerve to complete her advance
 purchases of war material, it was l quoted yesterday at 5.91 1-2. while I on that previous occasion it touched
 5.95. This means, in plain terms
 that it took 5.91 1-2 lire yesterday
 to purchase one American dollar. The
 1ira, at par, is supposed to be worth
 exactly as much as the franc. or
 19.3 cents in American money. It is now worth about IT cents.
 British Pound Buys Less Now. Il Neither London nor Berlin ex-
 change has been subject to quite such Il startling drops as this, but London |ex- 5I change, despite the pouring into America of British gold at the rate T of a million dollars day, does little
 more than remain steady at SAYS Ia .l to the pound sterling. whereas in nor
 mal times it required $4.S6 5-S to 1 AS favs Tr exchange, normal figures quote 4 marks as worth 95 1-s cents. Four
 marks will now bring only 82 7-S : cents
 , As showing Americas position in Fl consequence of this state of affairs.
 it is only necessary to point out that
 the banks and trust companies form
 ing the New York Clearing House
 reported balances Saturday totallfng $183, 900, ,0o0 more than the legal re- 2 1 quirenents. Money to loan was in |. consequence so plentiful yesterday that borrowers had only to pay per |, cent. on call for it-so eager were the | banks to put their huge surpluses to | work.
 Greatest Creditor Nation. One of the greatest financiers of the United States, discussing the meaning < of this situation yesterday, declared
 it meant just one thing, that whether : or not the United States enters the
 war this country will become the , ,, worlds greatest creditor nation, with a financial supremacy that cannot be
 questioned.
 The outstanding debt of the United
 States is now $1 ,O2S, ,564, ,OOo Interest < on this amount is paid at the rate of
 from 2 to 4 per cent. annually. This , same fnancier estimates that at the < end of the war the belligerent nations
 will be owing close to $25, 900, ,00O, 900, on 5 which they must pay annually, in in ) terest, a total sum as great as the t present debt of the United States American Dollar in Chilf. ;; At the time that the French and : Italian exchange figures were pro
 claiming yesterday that the American
 dollar has become the worlds stand ard of money value, Leopold F'redric1
 financial adviser of the American
 SmeIting and Refining company, just returned from Washington, was an nouncing that his plan to have the dol Fl lar officially quoted in the Valparaiso 2 Chilli, Stock Exchange had been adopt
 ed
 In order to reap the benefits of this : new system, MT. F'redrick suggested : that in the future the Chilian govern ' rnent should be requested to permit
 exporters to the United States to pay 1 export duties on nitrate of soda, .Ch1li's
 chief commodity, by ninety-day sight
 bills in dollars on New York. Hitherto
 these duties had to be paid either in
 gold or in bills on London The , change would establish direct fnan-
 ciaI relations between Chilli and New 3 York.