The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-17
EXCHANGE DROPS TO !
LOWEST IN HISTORY.
New Sensational Break Carries
Demand Sterling Down
to 4.S9.
MARKS ALSO AT NEW Low

Sterling exchange continued its sen
s~stlonal break again Yesterday. selling
down to 40 for demand and t.7sI for
cables. The oldest experts in foreign
exchange confessed hat the decline had
upset all precedents and that all low
records had been broken. with ex-
change At such low levels the feeling
existed in banding circles that some
thing shortly would have to he done
10 restore rates to normal or to take
some means 10 protect ourselves from
y Hood Of foreign liquidation.
Wall Street was full OF rumor last
night Of conferences OF important bank
ers, but investigation revealed that the
strongest banking interests do not yet
feel the situation demands q resort TO
artificial means.
Rumors of heavy gold imports from
London and from Ottawa continued but
did not materialize with the exception
~ aeother consignment OF $500. 900 in
gold coin taken by Lazard Freres In
ottawa, making In all $1,000, 900 Sc
cursd by that firm since the break in
sterling. There were reports that $780,
OO0. had been engaged ia Ottawa
for shipment here. but tho banking
institutions mentioned denied knowl-
edge OF the transaction
Henry y. Dawson Of 7. p. Morgan &
Co, who was In London at the time
exchange was 50 much against this
Country. comforting with British Treas
ury oficials. said that 80 far as no
knsv nothing had been done IN regard
TO - present situation. He intim sted.
however. that exchange was reaching =
pofnt which might soon call for action.
Toward the close OF the market ster-
Ing exchange s,ifened somewhat on re-
pcreD that conferences were being held
a an important International banking
house and that steps were being taken
TO establish a 500. 10000 credit here
for Great Britain. The rally held to the
close OF the market and Resulted in the
following quotations for sterling De-
mand. L79l, cables. 479f., against
1901 and $685. on Monday. Francs
closed at 5.25 for checks and 5.2+i. for
cables. against 5.21 and 5.20L. Marks
were weak. selling down 10 SA Tor
checks and sia for cables, a new low
record.
A prominent international banker aid
the situation had not as yet reached a
serious stage. The decline. he pointed
OUJ, WdS Olly W. Wttn 4 hIu = PNi ~
and was not nearly as great as was the
advance last fall. He did not fear liqui-
dalton Of American securities held In
England because money IS cheap in
England and /, would be better for the
English investor to keep his American
securities. The decline in sterling. no
said. al moi nearly as great AS IN
marks. where German investors had been
able to make a proft through the dis
posal of their American securities.
One prominent expert in foreign ex-
change. II is reported, has suggested
that a credit OF approN. mately 500, 0oo.-
900 be established here TO- England
against ;he purchase OF munitions of
wal only III order 10 protect American
merchants and manufacturers against
loss through deprecated exchange.
The National Bank of Cuba yesterday
received 100000 in gold when was I'M
ported from London. 1t IL expected
that the gold will be shipped To Havana.
II wat explained that every year about
this time there IN 4 movement 81 gold
from Europe to CUBA. Previously, how
ever, the source OF the movement has
been Paris.