Evening star., 1915-06-16
STERLING EXCHANGE
At NEW Low POINT
French. Italian and Russian Bills
Also Weak, the American Dol
lar Is Above Par.
Predictions as to Further Declines.
Gold Imports-Railway Com
mon Sold at 81.
BY I. A. FLEMING.

The value of the American dollar in
daily. In like ratio the English pound
sterling. the French franc and other
foreign money is depreciating.
Where in normal times an English
pound sterling would bring as It's
equivalent in dollars and cents
about sS1ie. it is today worth less
than s477 Moreover. one of the great
est experts of the United States on
sterling exchange. John E. Gardin of
the National city Bank of New York
has gone on record as asserting that
'he would not be surprised to see
sterling as low as $425.
This in normal times would mean a
very heavy import movement from
England to the United States of gold.
the usual medium for the settlement of
trade balances.
In normal times" says Mr.. Gardin.
lowing to the huge invisible balance
against US. we are debtor country 10
the extent of about s1.30o.oOo,Ooo an
nually, but since the outbreak of the
war number Of the features OF the
invisible balance, such as travellers ex-
penses, have fallen away. while the
visible trade balance in our favor mas
grown TO tremendous proportions Cold,
the means of settlement of all interna-
tiona1 balances, is absolutely needed
by the European nations for the sup
port of their enormous paper issues.
the yellow metal forming but about 81
per cent back of the paper money, and
its use in payment of foreign debts is
absolutely precluded, with the result
that all exchange has fallen to unusual
discounts"
This great balance of trade in favor
of the United States has been accu-
mulated by the enormous purchases OF
ammunition. stores and supplies of
every description.
The buying power of the English
pound sterling is lower today than IL
has been in the United States Tor n1ty
years: and if Mr.. Gardin's theories nold
good all records in exchange are on the
point of being broken.
There is today per cent discount
cent in Franch francs and Is per cent
on Italian lire. Russian exchange has
not been sold in the last day or two.
but II is said to be even weaker than
that of other allies.
Holland maintains a good market
for its bills. and its bankers are ac-
credited with having sold, for German
holders. large blocks of American Sc
curities.
With foreign exchange in this con-
dition and with probably $200.o00.000
or more idle money in American banks.
the receipt of blocks of American Sc
to a certain extent. would not be looked
upon as even an annoyance to Wall
street.
Treasury Condition.
The condition of the United States
Treasury. at the close of business yes
terday was:
Net balance in general fund, 20,so4,-
13s; total receipts. s3.s42.470; total pay
ments. s2,Ss3.5s4.
The deficit this fiscal year is $99,240,-
1ss against deficit of s32.504,035 last
year, exclusive of Panama canal and
public debt transactions.
Gold Imports.
There has been deposited in the sub
treasury at New York S2,500.000 gold
received from Canada.
The International Banking Corpora
tion will ship from Yokohama on the
Minnesota, sailing Saturday. 100000
yen ts750,OO0) gold.
The total gold engaged for import on
the present movement since the begin
ming of the year now amounts to 31o2,-
095,000.
BY countries, the sources Of the gold
imports since January / were fol-
lows: Canada, s12.s20,0oo; China. $3,-
100000: Japan. $s.s25,o00; London, 81
eJU,Bho. South America. $4,000
Denmark, 100000: Holland, $1,000, 900,
and France, $11, 100000.
Local Securities.
The feature of the session of the
Washington Stock Exchange was the
sale of 30 shares of railway common
at IL. the lowest figure for some
days and a fraction off from the bid
price of Tuesday. Railway preferred
was also easier. with sales at S3A
There has been no activity in these
shares Of late and the support has not
been of the usual aggressive character
The rest of the market was slow and
but little better than nominal, with no
particular change in values. Washing
ton Gas sold at 72+ to 70 and MerEen-
thaler at 1873