Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1915-09-02
Extreme Depression of $4.5t
Followed by Faltering RecOv
cry to S4.55I I1-Francs Touch
500 and Lires 6.54.
BIG NEW YORK BANKERS CALM
Delegation of British with Plans
TO Remedy Situation May
Reach America TO-day-Cen-
sor Has Kept England IgnOr-
ant of Situation.

New York, Sept i.--Foreisn ex-
change rates, led by the English pound
sterling, played fast and loose to-day
in checkerboard moves over the low
est plane of values ever reached in
this country.
From extreme depression Of s4.5c
registered at the opening of the mar
ket. sterling made its faltering way
by leaps and falls to Sassy in the late
afternoon and fell back at the days
end to s4.54. Francs dropped at a
single broke to 500, reaching
their lowest value. Lires lowered
around 6.5i, approximately 26 per cent.
below their normal worth, remaining
there because they virtually amounted
to nothing in the days dealings.
Reichsmarks zigzagged between s0as
and SOS. The entire market was in
commissions throughout the day, al
though the tendency toward hysteria
lessened toward the close.
The big bankers Of New York. how
ever, We're inclined to calm rather than
mysteries one foreign exchange expert
asserted tonight that he doubted II 1o,-
NOo pounds sterling had been bought in
this market to-day, This view how
ever was not generally accepted.
For reasons not seen the surface.
optimism was more apparent tonight
than analysis of the situation seemed to
warrant A persistent report prevailed
that relief was In sight. 1t was said
that the delegation of British financiers
and treasury- officials sent here to mend
England's battered credits were almost
within sight of land. The blue pencil
of the censor had crossed out all news
from abroad Of their sailing for New
York but it was thought possible they
would he found aboard the American
liner St Paul. due to dock here to-mor-
row.
BRITISH ARE TNINFORMED.
The censor. according to mail reports
from abroad sent 70 newspapers here.
has heen greatly interested in the for
een exchange situation recently Press
ca bles accordine to these advioes. have
been held up and edited 10 eliminate
references to weakness and in some in
stances /, is said. actual quotations have
been deletod Incoming dispatches. II is
reported. have met much the same fate
As result il was reported high British
officials We're but poorly informed OF the
s.tuation
There was less talk to-day of the
possibility that rates would fall so low
as to result in curtailment Of American
exports. Discussion conferred on Great
Prta'ns remedial plans, none Of which,
New York bankers profess. Is known
hkre
In the absence of these plans II was
assumed that the contemplated credit
loan to be established here would ne Of
such proportions that it would be ns-
tional. rather than New York anair.
in respect to participation.
F'ror the hetterment in foreign rates.
attributed by some authorities to the
fact hat the decline Of Yesterday and to-
/ days early market had been too rapid.
/ financiers turned 10 a study of the ahnor-
nal and unusual conditions created by tina
situation. Investigation showed that II
teemed with unusual developments
l. ALONE CANNOT PROFIT
| Not the least of these was the discovery
| that Of all the American institutions send
Ing money 10 foreign countries or recev-
ing it from abroad the United States
government alone could not profit ny
the low rates AZ leas, SO far as interna-
tional money orders. issued by the post
office Department are concerned While
the Enelsh pound was selling in Wall
Street at $50 the postoffice. several
blocks away. was paying the standard,
normal rate of s4S7. Senders Of money
orders to England had to pay S,S1 to the
pound, recipients Of money orders from
England were given that sum here
The same situation prevailed AT the
| postorice far as other foreign moneys
We're concerned This was due it was
said TO ancient treaties which fixed in
rigid terms the exchange values Of
money between tho United states and
its associate powers in the issuance Of
| postal orders
Enormous profits to American import
ers owing bills abroad appeared to he
in sight with the prevailing low ex-
change rates OF to-day and not little
of the bills bought, it was said was to
discount foreign bills. Americas bill
for July to Great Britain for goods re-
ceived at the port of New York totaled
in round figures sl3,oO0o0. On account
Of the depreciation OF about seven per
cent. In sterling, American importers
paving this bill to-day could have set
tied IT FOR approximately N2,ooo,ooo.
pocketins a round million dollars profit
From France the United States inn
ported during July articles to the total
value of 81 ,sS, 40 through the port Of
New York. Approximately IS per cent of
this bill, or about $4,000 could be
deducted to-day, due to exchange rates.
because the sum is PAYABLE not, in dol
lars hut francs
Items to the value Of s., 19l coo came
to New York from Italy in July. In
paying this bill at to-day's rate Of eN-
change American importers would have
to take only $2,0oO,ooo. in round figures.
l