New Britain herald., 1915-08-31
Bankers See Halt of Foreign Or
 ders by Drop in Sterling
POUND SELLS AT %.@ 1-2
British Buyers Called Upon to Pay Premium of Twenty eight and Half Gents on Every Pounds Worth of American Purchases.

New York, Aug. 31.-Foreign ex- change rates reached their most serious stage today with an overnight break of 2 1-2 cents in sterling, the English pound selling in this market at $4.5S 1-2, close to the mark where curtailment of big foreign orders to opinion of bankers.
 Nothing like the violent break in quotations had ever before been re- corded in foreign exchange markets here. The low level reached today was 1 1-2 cents below the mark set weeks ago by f1nanciers as the so 1rreducible minimum which, when reached, would cause British buyers to seek other markets in which to place their orders for such imports as could be obtained elsewhere than in America.
 Actual Munitions Excepted.
 Foodstuffs, manufactured goods and ether products-in fact almost every thing except munitions of war-were embraced within the category.
 Decentralization in the foreign ex- change markets was succeeded by almost chaotic conditions as the re- ooiI LII tIl6 DTedk. DodllIlSS III lOI SlS II exchange were verbally at a standstill. Rates varying as much as cent were quoted by different houses but these rates were, in almost every case, purely nominal and there was almost no business done in English money here today.
 Premium of 2sa cents.
 The big break means that English buyers. in addition to the top of the market prices already paid by them in this country for American pro- ducts, are called upon to pay pre- mium of 2S1a cents on every pounds worth of purchases, or more than five per cent. With London carrying this onerous burden, something new tc British bankers, as English money has for generations been the worlds standard of international finance, the question discussed in banking circles here today was how long Great Brit ain would continue to buy here such articles she was not compelled to-.
 There is no other world market of importance open, it was pointed out but more rigid economy at home in all imported articles ana purchases by Great Britain from such European neutrals as had wares to sell, it was thought, would undoubtedly follow if exchange rates should go lower. This would result in 1essening, to an extent which cannot be estimated, the amount of goods which American sell CTS are sending abroad, now the great est in volume in the history of the country.
 No Contracts Cancelled.
 Not an American contract has yet heavy premium which British buyers must pay giver every indication, in the opinion of local bankers, that cancel lations will follow unless rates are rectified very soon, and that there will be a decided slump in new orders. What this would mean to American industries could not be estimated.
 The new low record of 4.5S 1-2 was the fifth low record established in five consecutive business days.
 Time for Relief.
 The time for doing something to strengthen the market, in the opinion Of bankers here, has arrived. Relief should not be longer delayed, is the belief of leading bankers here. Why nothing has been done, it was believed, was because Great Britain had not fully awakened to the seriousness of the situation.