The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-16
FINANCIAL NEWS
AND COMMENT
Fall in Sterling Exchange
Chief Subject Of Wall
Street Interest.
ARE IRREGULAR

---S, A..
TOT ~ "rS' '""e WIS "" ''
stock market community yesterday en-
gagged Its attention chiefly with purely
on,no,,, a.,o,oomor,. In an vor
N --.--
10 relate tnem 10 the immaculate pos'uon
and prospect OF securiues. There Is no
rca son for regarding the outlook for
.a. ..,... o.... H.. oo.,utu,,,u,
tUo'e" '"''es nv 10" p.
because sterling exchange mas entered
on a fresh state OF decline. Rather the
co,.,r,c,iv. factor. ~rvo,v.d IN IN. in
-, -
'erna'ionai ascenuency vi A"er'ea"
finance are strengthened by the CONSOLE
dalton OF the new world money market
IT.. ...,,,.,., w.. A, ~.
-. ,i,a. ~. wsaLns.. - ~. rorumn
81. 80 $500
sH.nes !. W.. ""' No
~. .,aSm 80 -. ,an
80 80.
,e"' NV ~ ou'
Mo"uay, anu ue.'iIe cen's ,Ior,
sno Nv. ~ vi a.. "eN, ~.
,orns U ruToPean renn,t'ance' notapiy
rrehsn anu i'aI,an eAcnanse, renecteu
ene u" 49,
.eipe vi S@'ooo,VVo Hors so.u ,ron ".
.a"a was snnounceu' uouo's oesan W
pe~ eNpIesseu u hohuon nau a so.u sup
ply' po'h aVaiiaoie anu accesslpie' to
commune nnuch ionser 'ne process OF
setuing tne heaNy deoit balances which
are pllng up mere against BRUSH
hnahce oy shipments or transfers oil
goiu 10 this centre.
III the BANK OF England has been &C.
cumulatng reserves In Australia and
south AFRICA as IN Canada they may
perhaps De drawn upon, Perhaps the
r1sks OF t'ansatlantic Shipment may be
minimized. but II Is becoming more and
more apparent that " IL now IN order
ior British nnance 10 take steps TO mee'
the situation which has developed in the
international money market that London
formerly controlled, Dut or winch II has
clearly lost control. There IL no need
here OF heaping up gold IL other means
OF adjusting the foreign exchanges car
he contrived, and 1t is manifest from
premier Asquith's statement yesterda!
concerning the enormous ana increasing
COST OF the war ana the tremendous taN
"hl'n II II roinv 10 impose on Brltlsr
resources tnat the brltlsh oroVernmen
Is awake 10 the necessities OF the mo
fhent
ror us tnere Is naroly OCCASION to'
Vonre,h' Our soous anu coinihoI'ties
i~nCiuuIns war material, are a~osoiu'eI!
n,u'spehsaoi- " ureal nrItaIn anu ne'
-- - -, -,
Inenl ior 'neI" WIN - coh'iINeu. in'
,e.uetanee ~ n.I'isn .".es.or ~
,a,,.,.t.a" ~. par. M"n
III az, 10 o.unsa .u."u. go.
80 ."t1as - 80 49,
Ia. an, -, ~. Ia. 80, p~,aI,
"an $500 .ao,,a,,o,s o. nna :,
,his r,arra, IA acnonmndo,tn, asi, ,,n.
',nr,.aa,n ~ ,or,hconnina -, n nr,,a a,
nres.nt ,hou.h ,hs ros, honaf,,, MOS
noe, seams ,o he osfarad b,. Rr,,isb 90
..,s ranresar,ed in inc boldinys n,
Americnn se,uri,Ies and ~ the vo,un.
.,rv I~iouid,,,on M these 10 ana deou,,,
arr,ngements may he effected which vii
! make these securities avalah,e I,
| uuan,itv as collateral for loans.
There was more talk In stock marke'
circles about the arrangement of ster
ling exchange and It's implications thar
any real uneasiness over n. The pres
ent discount Of about 2 per cent. on tn.
! pound sterling in the money marke,
here could be materially enlarged with.
out having any detrimental results. and
meanwhile the discount works more o,
less automatically to bring about som,
moderate relief OF the foreign exchange
situation through a stimulated increase
| NJ British liouidation of American stock.
and bonds. A temperance OF foreign
Humiliation OF bonds in the last two
days IL proof that this process IL alread,
going on and undouhtediy 4, 10 accom-,