The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-13
LONDON EXCHANGE
IN FURTHER BREAK
Possibility Now That British
Bills May Be Drawn
i'm Dollars.
MARKS AND FRANCS DOWN

The foreign exchange market closed
last night in a demoralized condition.
with sterling exchange selling at 47S. a
break OF Ia cents In the pound below
the final price of the day before, whicR
was I'm itself a new low record. Ster-
ling cables closed at 4.73% as COM
pared with 4.75A on Wednesday. The
break in sterling upset the entire Tor
eign exchange market, causing a fresh
decline TO a new low record In francs
and various recessions in the Exchange
rates on the other European countries.
Foreign exchange brokers said last
night that sterling probably would go
fully 10 cents in the pound lower unless
some strong artificial means were re-
sorted TO in order to check the drop.
An international banker who Is
closely In touch with the situation
said yesterday that thus far the de-
rreciatlon in London and Paris en-
change had In no way affected the prices
Americans we're receiving for the goods
they are selling to the Allies. He said
that In so far as he knew all payments
for foodstufrs n munitions OF war
we're being made in gold and nat none
OF the allied nations had as yet shown
any evidence of being unable to make
their payments In that metal.
Every payment has been made
promptly by the Allies. according to this
banker. This is the first time that II
has been stated OF such high authority
that in view of the depreciation In
sterling. franc II rubles payments
were being made In gold or Its eauiVa-
lent.
II is known. however. that Russia's
credit In this country Is not as good as
II might be, and that this to a certain
extent is initiating against the ac-
ceptance OF some OF her ORDERS. TIL.
mead of an important natIoral bank
said Yesterday that there was no limit
20 the orders for all sorts OF supplies
which Russia would willingly place her
II 4, were not for this hesitation on the
rar: of American manufacturers and
shippers TO extend unlimited credit. IL
was learned on good authority that only
about IS per cent Of the total Russian
war orders placed here thus far have
been paid for and that bankers feel
that somewhat of a problem may arise
! when the remaining IS per cent. falls
due.
The only hitch in the placing OF a
! British credit of hundreds OF millions
In this market Is now understood To- be
the settling OF n few differences of
| opinion among the bankers here and
In England as 20 the best methods o'
| placing the credit or a In some
, auaftera II is rumored that London Is
loa,h TO turn over the financial su.
premacy of the world to New York and
| consent 10 draw bills on US in dollars
but this is generally d~iscrtd!ted. II is
felt that the credit negotiations are APP
| preaching completion and that before
Ions an important announcement may h'
forthcoming. 1t Is expected. that the
next shipment Of British gold will come
from South Africa.
Frarcs closed last night at 5.s3 for
| checks ard 5s2 for cables ~ com
pared with 5.Sli3 and $50. Marks were
| lower. at 81 ll-ls for sight drafts and
Ma, for cables. They were quoted the
day before q, 50 and 50 lis respec-
lively. Italian lire advanced from s3'
10 G.35, while Austrian kronen declined
from IL. % 10 1913.