The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1915-08-17
AMERICAN DOLLAR
RULES SUPREME.
English Sterling Topples From
Throne of the Financial
World.
WAR BILLS POURING IN.
ANXIETY Buyers of War Order Stocks
Relieved by Changing of
Monetary Standard.

New York, Aug. 16.-The Ameri-
can dollar rules the financial world
today with an iron grip. Pounds
sterling, francs, lires, virtually all
depths in torrent of bills that
poured into the exchange ma kets
from American manufacturers seek
ing pay for the big war contracts of
munitions and other supplies pur-
chased here by the warning nations
of Europe.
Coincident with the startling de-
cline in exchange rates, came the
assertion from an unimpeacLable
source that every contract made by
the American manufacturers for the
supplies sent abroad called for pay
ment in American dollars and not
English pounds sterling, which here
tofore had been the standard of f.
nance the world over. The immense
.osses, therefore, due 20 the d>cline
in foreign exchange rates, will be
borne, to the last penny, by the
foreign buyers, and will not be sus-
tanned by the American manufac-
turers.
The maximum depreciation today
in pounds sterling was AZ per
cent below normal; in francs 10
per cent below normal; in Italian
lires 26 per cent. The pound sold
at one time today for only $4.64.
6.2 francs equalled a dollar and a
dollar purchased Gas lires. In the
last hour OF the business day, how
ever, the appearance in Wall street
OF j. P. Morgan for the first time
since the attack on his life six weeks
ago and an informal conference of
bankers to consider the exchange
situation, sent rates upward
Sterling closed at 4.67k, one
half point higher than it opened and
point and a half under Satur-
days close which established a new
low record at the time. Francs
gained points over the low record
selling at 5.99 at the close and lires
rebounded a point closing at 6.47
What to do to remedy the situa-
ton engaged the attention of bank
ers with international connections a,
their conference late today 1t was
| decided to do nothing, chiefly be
cause the remedy lay with the for
| eign buyers who will be the suf-
ferers.
MAY SELL SECURITIES.
One remedy suggested was to sell
| American securities held abroad, but
when this contingency was studied
the situation seemed to be pregnant
F, with unique poise. Millions of Amer
lean securities. payable in dollars,
are held abroad, chiefly high class
railroad bonds and preferred stock
of selected list of American in
dustrials. Should these be sold at
present they would bring far more
than the purchasers paid for them,
due entirely to the depression of
exchange. With the prospective
profits as an inducement, IL was
believed that holders abroad would
be willing to sell, and that for
eign buyers of American goods would
have little difficulty in procuring a
large amount of American securities
abroad as collateral for a temporary
loan in this country, which would
tend to correct exchange rates. The
establishment here of a big foreign
credit, estimated conservatively at
$500, 100000, is thought to be alb
solutely necessary If exchange rates
were to be restored to anything like
normal.
| The assertion that dollars and not
pounds sterling had been the fnan-
! cial standard on which contracts for
war supplies had been accepted came
as distinct surprise. Aside from
marking the temporary passing OF
London's control of the world :
| treasurer chests, IL relieved the anX-
! iety OF investors in war specialties in
the stock market. who were CON
fronted with the prospect of a large
shrinkage in prospective profits due
/ prevailing exchange rates.
1t was learned that the amount D.