Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-08-14
More Acute Conditions Are De-
veloped Today in the Ex-
change Market.
DEALERS HAVE TROUBLE
IN KEEPING TAB ON RATES
Financiers Discuss Possibility Of Es-
tablishing $500, ,Oo0, 900 Credit
for England, France, Russia.

NEW YORK, August 14.-More acute
conditions attended today's foreign ex-
change market, with new low records
for bills on London and Paris. De-
mand sterling fell to 4.69k against
yesterdays low level of 4.70%, and
Paris checks were quoted at $50, a
loss of a cent from yesterday.
AS a matter of fact the market was
SO demoralized that dealers in ex-
change had the greatest difficulty in
keeping themselves posted on rates.
Quotations in different banking houses
varied all the way from 1 to points
on the remittances to London and
Paris After the close of the market
it was said that one Of the largest
banking institutions in this. city had
sold London bills as low as 4.6s.
No Marked Changes Shown.
The rate quoted for other European
countries showed no marked changes
from yesterday. In point Of fact. quo
tations for all continental exchange
other than that on Paris were merely
nominal. Offerings on London and
Paris were relatively light but 1t was
said that further large amounts of
these remittances would be offered dur
ing the coming week. All present indi-
cations point to lower quotations un-
less British and French credits are soon
established here.
So far as could be learned. no progress
was made today in negotiations having
for their object the establishment of
further foreign credit or loans in this
market The heads of the leading in
ternational banks and banking houses
ayailed themselves of the half holiday
to remain away from the financial dis
trict.
Propose $500, ,ooo, 900 Credit.
The bankers who have been handling
financial affairs for Great Britain,
France and Russia in this country
contemplated today. the possibility of
arranging credit reaching $500,000.-
900 to meet the situation arising from
heavy European purchases of war mu-
nitions and the consequent extraordi-
nary decline in rates of foreign ex-
changes Discussions of methods for
advancing these sums were in prog
ress.
One of the chief questions up for con-
sideration was the nature of security
to be required for the advances of
American funds. 1t has been suggested
that the credit may be secured by the
deposit here of American bonds held
in Europe. An effort to collect such
bonds for a similar purpose in Great
Britain recently did not meet with an
encouraging response.
May Call for Special Tax.
To facilitate this operation it was
said today that it may be necessary
for the British government to impose
a special tax on American bonds un-
less they are deposited with the Bank
of England. 1t is also proposed that
British and Canadian bonds to the pro-
portion of 25 per cent of the total be
advanced as collateral.
Suggestion had been made recently
that 100000 900 in credits chiefly for
Great Britain be stablished here, but
bankers have now taken the stand that
when the bulk of American war sup
plies in process of manufacture is sent
forward the final payment then due
will be SO large that $1OO,00O,00O Will
be Intellectual in stemming the decline
in exchange rates.