Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1915-09-01
FOREIGN EXCHANGE
AT SERIOUS STAGE
Rate Drops to Point Where Bankers
Say Great Britain May Cur
tail Buying Here
DEALINGS NEAR sTANDsTuL

NEW YORK, Aug. s1.-Foreign
exchange rates reached their most
serious stage today with an over
night break of ~ conts in sterling,
the English pound selling in this
market at s4.5sh. close to the mark
where curtailment OF big foreign or
ders TO the United States would fol-
low. in the opinion of bankers here.
Nothing like the violent break in
quotations had ever been recorded In
foreign exchange markets here be-
fore. The low level reached today
was 1 u cent below the mark set
weeks ago by financlers as the So
called irreducible minimum which,
when reached, would cause British
buyers to seek other markets in
which 20 place their orders for such
imports as could be obtained else
where than in America. Foodstuffs,
manufactured goods and many other
products, In fact almost everything
except actual munitions of war, we're
embraced within this category.
Decentralization in the foreign exchange
markets was succeeded by almost chaotic
conditions az the result of the break.
Dealings In foreign eXcnAnge were vir-
tually at a standstill. Rates varying as
much as cent were quoted by different
houses, but these rates. In almost every
On 80 warn nnraiv not,ioal apd Shnr. -. .
no business worthy the name done In
English money here today.
The big break means that English buy
ers, in addition to the top OF the market
priceh already paid ny them In this ooun-
try for American products, are called
upon to pay a premium of 2SM cents on
every pounds worth OF purchases. OF
more than per cent with London car
rying this onerous burden. something
new to British bankers. as English money
has for generations been the world &
standard of International finance, the
question discussed IN banking circles here
today was how long Great Britain would
continue TO buy here such articles as II
was not compelled to.
There is no other world market oi
Importance open, II was pointed out, but
more rigid economy at home In all i'm.
ported articles and purchases by Greai
Britain from such European neutrals nj
had wares TO sell. Il was lnought would
undoubtedly follow II exchange rates
should SO sower. This would result n
lessening TO an eN1lent which cannot nov
be estimated the wnount OF goodA which
American sellers are sending abroad, nov
the greatest in volume IN the history o.
the country.
Not an American contract has yet beer
cancelled, II was said, but the heavy
premium which British buyers must pa,
gives every indication. In the opinion o
local bankers, that cancellations will fol
low unless rates are rectlfied very Booi
land that there will be decided slump Il
new orders. What this would mean {,
American industries cannot be estimated
The new low record OF N.6sM was tn
fifth low record established in five con
secutive business days. Since last Thurs
day the pound sterling has dropped from
S464, or bh cents. nearly ons-half o
which was registered when the marke
opened today.
With sterling's break today. franc
also were deprecated to within l Ger
OF their previous low records OF $50
IAres were quoted at seb2 yesterday
close, 4 cents better than the lowest rate
reached, and reichsmarks went to S0M
" cent above their lowest, and X Ger
below their closing quotation OF yestel
day.