The Washington times., 1915-08-29

The favorable turn in the international
situation has practically d!spelled the
spirit of depression that enve.oped
American business and finance one
week ago.
In the stock market complete recov-
cries have been made of the losses in
volved In the slump of prices which en-
sued with the announcement OF the dis
aster to the White Star liner and the
loss Of American lives.
At the close of business Friday fifty
representative stocks had regained the
levels at which they were selling when
the Arabic went down. and this had
been effected within eight days. This
resaining Of high levels was in sharp
contrast with the situation which fol-
lowed the sinking of the Lusitiana,
when practically a whole month clap
SEQ before the market had repaired
damages.
Meanwhile. internal conditions con.
tinue to make steady Progress. The trade
journals report improvement in prac-
tically all lines of business, and the
number Of failures during the pas,
show decrease from those in the one
previous and compare favorably with
the number reported in the correspond
Ing week of last year.
F1sures Just made public by the Bu-
reau OF Foreign and Domestic Commerce
OF the Department of Commerce show
that the export balance Of the United
states for the seven months ending
with July fell just a little short of a
billion dollars. being $3.50 s7s. .o54, as COM
pared with $So,Sss,7 ,7s9. in the first seven
months Of 1914
This stupendous figure which has nut
the United States at the head of the
llst OF nations engaged in world trade.
enabling IT to outstrip even Great Bri-
tain. students of foreign trade esti-
mate. will be brought to a grand total
IN IN excess OF $2.0oo.oO,0 at the end Of
the calendar year.
But this vast trade balance is caus-
Ing the country to be confronted with
a serious problem Of exchange. The
pound sterling on Friday had dropped
70 new low level. touching 463h, or
in 1917 ~ WI" -
In an effort to evolve a plan which
VIII check the generalization of the ex-
change situation. Great Britain and
early in September, banking representa-
tlVes to confer with New York bank
ers. Aside from Sir Edwin Holden the
British representatives have not yet
been definitely determined upon. Alex
ender e,n Ribot. the French minister OF
Homberg; Of the foreign office. and Err
nest Mallet. regent OF the Bank of
rance, to represent that country They
VIII leave for England Monday, but the
date of sailing for America is being kept
n lhr,,o rt,4
Just what steps these conferees will
propose has not even been intimated,
That the American bankers, however.
Will insist upon a credit Of large pro-
portions being arranged in New York
seems certain. Unless the credit be
OF no avail
This appears to be borne out by the
fact that the establishment of a French
credit of S20.Oo0.Oo0 a few days ago by
brown Brothers. New York bankers.
Ior Tor tne purpose of paying some Of
Plies. had practically no effect upon
French exchange which has continued
to fall with sterling.
Owing to this decline In foreign ex
change. many options for war supplies
which We're held by American manu-
mitted to expire. The American Can
Company Is said to have failed to exer-
else an option on a contract for $25.-
100000. and numerous companies, ac-
cordins to news dispatches. are In
sisting that they be paid for their
products in dollars instead Of pounds
sterling.
Few industries probably have bene-
fted from the European war to the ex-
tent that the automobile industry has.
The exports from this country OF auto
mobiles during the past year. the Ma
tional Automobile Chamber Of Commerce