Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1915-09-01
ENGLISH MONEY
DROPS FURTHER.
SELLING AT $3.50
Trade Checked and Fear Is Felt
for American Ex-
ports.

NEW YORK, Sept 1.-English
money, already deprecated to figures
without parallel in the history OF
finance, took another phenomenal
drop today. The pound sterling sold
down, within the first hour of deal
ings, to $3.50, a break of 5A over
night and a downward plunge oi
eleven cents within two days.
The drop caused the gravest anxiety
as to it's possible effect on American
| exports, now at top figures. Con.
J tinued and unchecked depreciation
it was thought, would affect tens o
thousands of American workmen
possibly by ultimately closing dow
factories now supplying Grea
Britain with commodities.
This effect was in perspective, in
! the minds of some of the leading
bankers of New York. Before that
could happen, it was explained, there
would have to be cancellation or cur
tailment of foreign orders to Ameri-
can producers at present totaline
hundreds of millions of dollars, and
great diminution in the value of new
orders. Both the latter contingencies
were expected, 1t was said, in case
sterling should go much lower.
Exchange Markets ParaIyzed.
The immediate effect of the great
drop since yesterdays close was the
virtual paralysis of the foreign ex-
change markets.
A torrent of bills poured into the
offices of international bankers here,
but in the chaotic condition of the
market there were few actual trans
actions. Quotations varied by wide
margins. At the moment when one
house quoted 4.50 as the rate on ster-
ling, another was quoting 4.b1A. Fear
amounting almost to conviction that
sterling would go much lower yet
checked trade and held the big fac
tors In New York's international
money markets apprehensive and
awaiting the days developments.
There seemed little doubt that buy
ers In Great Britain would soon re-
fuse TO bear the heavy burden OF ex-
change and seek other markets in
which to purchase their goods, mar
kets in which the English pound had
greater purchasing power. 1t was
said, however, that there had been
no cancellation yet of war orders, al
though foreign buyers. fearful of the
off on placing future orders here for
anything except barest necessities.
These were mostly for munitions OF
war, which Great Britain cannot af-
ford to do without, no matter what
the exchange rate may be.
Low records of depreciation nave
succeeded one another so rapidly
within the last few days that dealers
have exhausted their superlatiVes In
Ia a
the oppression "a new low record
became O. trite phrase. From last
Thursday to today each day has seen
the value of the pound at a new figure
of depression. The question that was
oftenest asked today was when the
bottom would be reached. To this no
one had reply.
Forerunnor of More Declines.
There seemed every indication,
however. that the startling decline In
values was but the forerunner to de-
clines more startling still. The great
wheat and cotton crops of the country
have hardly begun to move. AS SHIPS
laden with these two commodities,
vital to Great Britain, sail eastward
a tremendous tide of bills Will reach
New York The height Of tins move
ment Is expected the latter part OF
THIS mOntn. WIN STIRLING hCNh W.
day to $4.50 without these TWO fac
tors reckoned, there seemed no telling
how 10 wthe English pound would fan
when the full wave of cotton ana
wheat bills should vent its force on
the exchange markets.
Great Britain, according to interna-
tional bankers here, had made no fur-
ther move to correct the situatlon.
At present her buyers are bearing the
burden, premium Of more than
seven per cent. on their money
While sterling suffered most today,
other foreign moneys remained prac-
tically stationary. Francs were
quoted at 6.03, a cent higher than yes
terday: lires were off two cents at
654; reichsmarks were virtually un-
changed at S0A.
After the first wild drop in values,
sterling steadied a bit and went up
to 4.52 At that figure the market
continued in a state of der1oralization
and dealings were almost suspenoea'
Mischa Elman Coming