New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-02
Promise of Due Warning
by Submarines Is Fol
lowed by Strong Close.
STERLING RECEIVERS
AFTER EARLY BREAK
Sight Drafts on London, After a
Low Of 4.50, Rise to End at
4.55-Relief Expected.


from the continued break in sterling
exchange rates overshadowed the mar
kct in the earlier dealings It was not
until there had been good evidence OF
recovery in the price Of exchange on
London that definite statement from
Germany Of her willingness 90 modify
her submarine blockade 10 meet our
wishes found much reflection in Sc
curities. In tho latter part of the af-
ternoou stocks rose with enlarged
trading, the more volatile issues. as
was natural having the best Of the
upturn. Final prices were about the
highest, up from a fraction to point
or more among most active stocks.
That the German Ambassador was
able to make public a message from
his government promising that pas
senger boats crossing the Atlantic
would not be sunk without warning
gives US the assurance which has been
waited for since the submarine
blockade was first announced. Init
nation of this message checked the
early decline and did much toward the
late advance Early in the day the
war stocks we're decidedly reactlonary,
with railroads. i'm which low rates for
sterling might be expected TO bring
out much foreign liquidation, compare
lively firm.
In the upturn with which the mar
l.
Automobile stocks were particularly IN
favor. General Motors going IN over
p points TO a new record. United
States Steel. which had got below ~,
rose 10 end a good fraction above
TUESDAYS final figure of -. Cruc bic
steel finished with an 8point gain
on dealings that brought IL next to
United States Steel for activity.
The foreign exchange market began
with much the same disorder that
marked Tuesdays wind-up From
1851. the ruling rate for demand
sterling the night before, there vas
drop Of over cents in the pound, and
soon sales were reported. at 40. Az
this point speculative sales were GOV
cred. Irregular Improvement fol
lowed. aided by purchases for remit
tances Of proceeds of London's sales
of our securities here. The final fig
uro Of 4.55 almost made up the earlier
losses.
In international banking houses the
decentralization OF the sterling market
caused little excitement. The situa-
ton was described as unusual. but
not alarming. 4 collapse in the price
of exchange on London has been
looked for. The extent of the decline.
in view of the immense pressure OF
our exports, was, il was said, no more
remarkable than had been the skill
with which il had been postponed.
Confidence was expressed that when
the commission Of the Allies met our
fnanciers arrangements would be
forthcoming TO bring about an order
IL method through which the Allies
could pay for their purchases here.
An object lesson has at least been pro
vided them. The nature OF the propo-
sition they will offer is said 10 be as
vet uncertain. Should. as expected,
large British bond issue here be part
of the relief measures. It's reception
by individual investors would natural
" depend on how favorable terms
might be offered TO overcome the
American reluctance to purchase Tor
elgu ODllEallOHS anu W iHNui WV "N,'
tional risk Of war. In this city the
banks. il is understood. would take
a large amount OF any British loan
put out. Outside financial institu-
tions, which directly and indirectly de-
pend on the continuance of our eN-
port business for a large part Of their
profits. may be expected to find 1t to
their interest to agree to any reason
able proposal.
Should collateral of American Sc
curities enter into the arrangement,
nations engaged in war will give their
authorities power TO bring pressure
on private holders. Government obi
cations may be exchanged on favorable
terms. and. If necessary, the taxing
power could be invoked to make
holding of American issues unprofit-
able. Canadian and South American
issues will probably be included.
How far the needs Of ordinary
trade. outside of government pur-
chascs. will he provided for remains
to be seen. The present great depre-
citation Of exchange on London has at
least one consequence on which Brit
ish authorities can look with eOuanim-
ity. For some time British cam
paiCn for private economy has been
under way, so that all purchases
abroad save those absolutely needed
for carrying on the war might be re
duced 10 their lowest limits. The
shipments Of gold and securities 70
agents Of the British government here
have had no effect on the price Of OK
change to the ordinary public They
have been used to pay debts already
incurred by the nation itself As
British houses have 10 pay so great
premium for American dollars 20
meet their purchases here. the price
of goods imported from the United
States must rise and supply tan
49, ..s-,,x,o,4 for tho ocororov 81