The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-17
CHAOS IN EXCHANGE.
FinRnricrs Confer. hut Are silent
ON steps to solve Problem,

Complete chaos existed in the foreign
exchange market yesterday from the
opening TO the close of business last
night Never in the experience OF the
Oldest exchange expert In the financial
district had such fluctuations in the
market been seen. Sterling exchange,
which closed at 4.6s on Saturday after
noon, dropped like plummet five cents
in the pound to 46i, then bounded up
ward to 4.67is and closed at i.65. This
pound for the day. The weakness was
not confined TO sterling II extended
throughout the market Francs, marks
Italian lire and Austrian kronen all
close OF business last night. as COM
pared with the American dollar sterling
exchange was at discount of ~, per
cent. while francs showed discount OF
II per cent. and Italian lire 26,
1t is believed that Yesterdays break
more than any other that has occurred
brought the knowledge to the English
bankers and statesmen that something
must be done soon to check the deprecia- =
tion in sterling. II Is certain that more ac-
tivity was shown by the big national
and international bankers OF this city
in considering the problem than at any
previous time since the close OF the
Stock Exchange last year, when sterling
was selling at 81 the pound.
Bankers In Conference.
Representatives OF all the big ma
tional banks were in conference at the
office OF J. =, Morgan & Co. all day,
Mr. Morgan. for the first time since he
was wounded by Frank Holt. went back
to his desk to wrestle with the problem
and spent the greater part OF his time
In discussion with his partners and rep
resentatives of other banks
At the close OF business. however. II
was said that the bankers were not In
a position to make any statements as
to what had been achieved In solving
the problem. one banker said last night
that he was pledged to secrecy. 1t is
believed that this promise of silence un-
I'll negotiations have been completed has
been made by all OF the bankers,
1t is generally admitted that only q
great credit or loan for Great Britain
or France or both can check the dror
in exchange on Paris and London. Es
Inmates az to the amount necessary tC
achieve this purpose range from 500.
OO0, 900 to $500, 100000 II Ia believed
that bankers here have felt for som,
! time that the sum will have to be wei
In excess OF s100,000,000
Rumor Of New British War Tax
! At the close OF business last night il wa.
/ rumored that England might see ft t6
| place "A heavy war tax on all American
| securities held in Great Britain, thu,
causing English holders of American Sc
curities to dispose Of their holdings ant
creating a demand for sterling here t.
make remittances which would advanc,
the price as was the case when there wa,
heavy liquidation of British held Amer
| lean securities not long ago to obtair
funds to subscribe to the $4,000, ,00O. .00'
, war loan at Az per cent.
The final quotations in exchange las
night were LOS for demand sterling an,
466 for cables az compared with 4,6!
for demand and 4.69N for cables OF
| Saturday
Francs closed at 6.O2 for checks an,
6.O1 for cables against "A previous clos
| OF 5.93 and 5,J2 respectively.
Marks dropped to S1k for sight draft
and Slh for cables, as compared will
Slss for drafts and 81 7-l6 for cables ol
Saturday.
Italian lire are quoted at Gas, agains
6lI at the close of last week,
Austrian kronen sagged TO 1906
against 1910 on Saturday.