Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-10-12
.F|NANC|ERs ALARMED
BY FOREIGN EXCHANGE
Rates Go Down I'm Disquicting
Manner Despite I'lOtation OF
$50O,OOO,OOO Credit Loan.
POUND STERLING TOUCHES 4 90 y
English Financial Standard Faces
Elimination Before Power OF
American Dollar Unless Method
Is Found to Bolster Its Value.

NEW YORK, october 11.-Foreign
exchange rates went down again to
day, in face of the successful notation
of the s50O.oo0,o00 credit loan TO Great
Britain and France, to their lowest
point since September II. SO disquiet-
, ing was the situation deemed that /,
three-hour meeting. attended by Wall
! street bankers and Sir Edward Holden,
member OF the Anglo French i'Inan-
ctal Commission, was neld at the Ma
tional City Bank for the reported pur-
pose of dcviSing some new method to
bolster the value of the English pound
sterling.
Since the arrival of the commission
here on September 10. the trend of stcr-
ing values has been steadily. thouE h
slowly, upward. For the past week
sterling has been at about sara To-
day it sold down to s4.67H, altogether
too far below par to make continu ed
buying of American exports desira bile
from the British point Of view, in the
opinion of some New York financicrs.
MEETING PRIMARILY
TO REACH uNDEHSTAND
The meeting to-day. 1t was reported,
was primarily to reach an understand
ing as to the best available method Of
using the $500, 100000 to stabilize on
change. and also with view 10 AR
ranging a private agreement between
New York bankers. on one hand, and,
london bankers on the other, for cred :
is which would tend to send sterling
cNchanEe up. credit for an addi-
ffonal $3.50. 100000. It is said. was dis
cussed
1t is thought possible that certain
American financial institutions might
.Ntend credits to the London banking
connections on collateral, which could
be readily realized on in Great Brit :
am, but for which tho market here Is;
restricted. With the credits available
h're TO pay for purchases made nv
Brttfsh Importers. tho pressure OF bills
would bo relieved and rates would II,
ca Sod.
Sir Edward Holden, as head of tho
London City and Midland Bank, repre-
sents the Joint stock banks of Great
/ britain on the Anglo French Commits
SION. Their resources are enormous
whether he acted as spokesman for
these great financial Institutions in to-
days conference could not be learned.
Those attending to-day's meeting.
( besides Sir Edward included BENJAMIN
strong, IL, governor of tho Federal
reserve Bank Of New York Frank 4.
Nanderlip and James II. Perkins. presi =
dcnt and Vice president. respectively.
of the National CITY Bank: James II.
Sabin, president Of the Guaranty Trust
Company: w. H. Porter, of ]. p. Nor
gan * Co; James Brown Of Brown
brothers & Co, and J. T. Alexander.
president of the Bank of Commerce
FOREIGN EXCHANGE EXPERTS
ARE PRESENT AT MEETING;
Foreign exchange experts of sew
| cral financial institutions also were
| present. These exports were reported
TO be unanimously of the opinion that
there would only be one remedy left
when the proceeds of the $500, 100. coo
; loan would have been spent-thc vir-
! tual elimination OF the pound sterling
as the standard of world finance. and
the substitution OF the dollar instead
At least for the remainder Of the wars
| duration.
| It was thought, could easily he iloated
under these conditions. if confined to
! banks and banking institutions and
NOT offered to the general public.
Advocates Of the plan were reported
| to have sought to, convert Sir Edward
| to their idea. When he returns TO
| Europe it VIII be his task to place be-
! fore the bankers OF Great Britain the
! financial situation in this country. 1t
Was thought that he would face diff
! hcuitics Ia convincing them that the
! time had come to subordinate the
! pound sterling. for generations the
standard of finance, to the dollar. His
| failure 10 do so. it liz believed might
| chhscs in American markets through
| the fact that the rate on sterling
would fall to point where such pur-
| chaSes could be made more advanta ge-
ously elsewhere.