The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-31
FINANCIAL NEWS
AND COMMENT
Irregular Downward Move
ment May Reflect Foreign
Exchange Crisis.
STERLING AT NEW Low

A certain loss Of momentum over tho
week end characterized the stock mar
ket yesterday. The rapidity and CON-
pleteness Of last weeks recovery from
the break following the sinking OF the
Arabic might In itself have furnished
technical causes for a slowing down OF
the UPWARD movement, but apart from
that there were some indications that
Wall Street wa disposed to a atten-
ton to the important difficulties of the
international political and financial
situation. The further break In Foreign
exchange, with demand sterling at tho
lowest level OF the year, was not some
thing of which speculation Tor the rise
would OF itself take heed, but banking
interests could hardly fail to recognize
influences which might operate, tenn
p~ofarily at least. as an obstacle to the
unchecked pace of bettcrmcnt In general
business and quoted values.
Dealings in stocks were in fair vol
umc, much too large to represent only
professional activities. and the more
substantial transactions seemed to de-
note realizing pressure to which the list
became sensitive in the afternoon after
an earlier display OF strength. In the
late trading the market was rather
heavy despite moderate rallies n al
lowing for an aspect OF ~irregularity
the general course OF prices for the
day was somewhat downward.
Sterling exchange closed at 4sl for
demand, a loss of TX cents from Satur-
day, with a similar decline in cables.
All European remittance was moro or
less weak, but the principal feature was
the persistence OF decline in exchange
on London. The fall Of sterling was en-
phasized by the arrival Of SIS. 100000 or
more OF gold and securities from London
in about equal amounts, the second in
stalment this month. Al the low level
yesterday demand sterling showed a loss
OF ~ cents from the price which ruled
when the first consignment of gold and
securities was received and the sugges-
ton OF the foreign exchange market
was that the proper line Of action to
soNe the problems OF the international
money market was not being resorted
to. or that the plan of action was not
comprehensive enough.
The July foreign trade figures illus
trate the difficulties OF international
finance and commerce. for they bring
the Export balance for the elapsed seven
months OF the year to more than $780,
'N's'NNs vi lpl al lTpIl lNlCt III
balance of trade EVER reported for a
corresponding period in the country's
history. Meanwhile sterling exchange
has broken badly, although in the same
seven months the country. In addition TO
buying back a large total of the Ameri-
can securities held abroad or making
advances on them. n imported $751;
600. 900 gold net. This months receipts
bring the Importation Of gold above the
whole of last years heavy exports.
Further point was given to the i'm
portance of the foreign exchange prob
lem by the weakness Of wheat, which
sold at the lowest level OF the season,
with heaviness In corn and oats. Cotton
fell In price on a Government condition
figure which indicated a possible crop
of less tina IL, 1000, 900 bales, exclusive
of ~llnters, a yield which up to a year
ago would have sent quotations for the
staple soaring.
Some Stock Exchange visions fail 70
see how corporate shares can be
affected by the troubles of international
finance. but considering the part played
by the export trade OF the past twelve
month In the country's economic record
of recovery from depression II is OF vast
Importance that the International com
expansion In which We nave en-
SANNu salohiA NC SusAdliltu III All ranches
and departments. II is quite commonly
agreed that the foreign exchange situa-
tion Will be taken cart of because II
but there has been n good deal of
delay In this matter and when and how
the international money market is TO be
adjusted are consequential questions
which the Stock Exchange cannot ignore.
All the chief impulses for stock market
Improvement his year have been de-
rived from developments in the field OF
foreign commerce and finance and the
maintenance of improvement Is greatly
dependent thereon.
There were no signs of a 81 OF un-
easlness on account of the Arabic affair,
there was some evidence OF a trine
of wonder IL assumption had not been
hasty that the international political
crisis which was ~precipitated by the
sinking of the Lusitania had ended.
These manifestations Of curiosity were
accompanied by inquiries as to whether
or not G~ermany's new diplomatic turn
masked a policy which might have more
unsettling implications II II were based
on expectations that Washington would
forthwith begin TO press the Allies with
vigorous demands involving purely