The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-14
STRESS DEEPENING
AS EXCHANGE DROPS
Sterling Goes to New Low
Figure, Causing Rush
to Sell Here.
RUSSIAN BILLS STRONG

Thu Generalization which has existed
In the foreign exchange market for a
week increased yesterday when sterlins
exchange dropped 2h cents in the pound
to 470&. as compared with n previous
close of 473. As a result Of the break
t, that new low figure, many persons
possessing sterling credits showed a de-
sire TO sell at almost any figure. The
result was that the situation was further
complicated. The market for a time was
purely nominal.
The head OF the foreign exchange de.
partment Of a large private banking
house In the city said last night that the
day was one of the most trying that he
had ever passed through In his long ex-
perlence In the exchange field.
Toward the close OF the market. ster-
ling rallied somewhat. closing at All
for demand and AIN for cables, as
compared with a previous close OF 4T3
foi the former and 473A for the latter
The weakness was communicated to
Paris exchange. which also broke "a
the new low prices OF $50 for checks
aud SIS for cables. This means that Paris
exchange. instead OF being rated at APP
proximate.y five francs TO the dollar,
is now almost On a basis OF six francs
TO the dollar. The normal rate of French
exchange Is about Sis.
Francs closed at SCI, for sight draft
and J.N5i2 for cables. against Thurs
days close OF 5.S3 and 5.s2 respectively
Marks were weaker. selling down 10
81 9-l6 for checks and sl% for cables
They closed the day previous at 81 l1-1s
foi checks and SIN for cables
Italian lire dropped to $50. against a
previous close OF 6.35. while Austrian
kronen were quoted at l2l2, against
1916 On Thursday.
Rubles were about the stronges fea.
ture OF the market. selling al 3jie,
against 40 a few days ago The strength
In Russian exchange Is giving rise to
the beltef that there are important de-
velopments under way regarding the
forcing OF the Dardeneiles or hat the
Russian credit situation is in a better
state than is generally believed.
The continued weakness in sterling
and the daily new low record prices are
giving rise to a belief that somethinr
must he done 500 to Offset the depreci-
alton In London exchange In order "a
prevent losses here. Rumors are in cir.
culation that the plans for the fotatior
OF n big British loan or credit are al.
h''' NDi'Al'NA'AH 'hN'' 'Nfb ~
duent conferences at the Morgan Offices
during the last few days, NJ which some
OF the most prominent bankers in the
city have been present. Secrecy has
been preserved regarding the nature Of
the discussions. Members Of the firm
when asked last night as to the truth
Of the report hat the details OF the
British financing were all but completed
said they could not discuss the matter
The fact that the millions OF securi.
ties which were sent here from Grea,
Britain at the time the sl9.53i.20 gold
was sent from London are 10 be used as
security for the TEMPORARY advances
which will be made TO Great Britain has
given rise 10 the belief that. when the
British loan Is placed here. the collateral
underlying II is likely TO he American
securities formerly held In Great Brit
ain, rather than English Government is.
sues.
Foreign exchange experts generally
believe hat the price for sterling Will be
lower to-day in view of the fact tina,
Saturday is generally an on day In the
exchange market. Estimates are tina,
a break 10 well below the present quota.
tions would not be unlikely.