The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-19
DECENTRALIZATION IN
EXCHANGE MARKET
Widest Fluctuations in Ster-
ling Ever Witnessed
Here.
HALTS BROKERS

The foreign exchange market was In
a state of utter Generalization yes
,erday. There were some Of the widest
H,ct uatfons IN sterling exchange
ever witnessed here. Demand ster-
ling opened at 4s2H. after closing On
Wednesday night At 4.si. while cables
we're quoted at 4.sS. a. compared with
4si&. The price soon deviined 20
4.s1lS for demand and 4.s17s for
cables. Toward the close the price raj
lied somewhat to 4.s2h for sight drafts
and 4.s2ik for cables. the figures
which were quoted ut the end Of bust
ness.
A. n result Of the erratic tendencies
OF the market business vas limited to
a considerable extent. II was said
that there were times when fluctuations
were the widest thai brokers refused to
do business.
The general tmsettleInent OF the mar.
ket VAS due TO all sorts of reports
which had been circulated regarding
conferences Of important bankers. pro
posals u ship gold IN great quantities
here from Great Britain and the runors
Of negotiations for the establishment ot
an enormous credit here for England.
The fact thai there was also considcra-
ble foreign liquidation OF American 30
curities was also largely responsible
for the quick change in prices. as O
as the knowledge that I a was
M hand on which Germany had threat
ened to begin her raids on all shipping
found IN the seas about England.
A prominent banker when asked yes
terday for a statement of just what the
~chang situation between England
and tho United States Was and what
stems had been taken TO remedy u
said tina no negotiations for the estao-
lishmcnt ~ a credit hero for England
were under way and hat the first steps
looking toward that end would have
TO come from Great Britain. Thus lar
he said. there a not even been an
exchange OF cable messages.
He POINTED out thai II exchange went
lower or continued at its present level
or II England continued 20 take supplies
from this country in the quantities IN
which she was aking them some re-
course to artificial means 10 bolster eN-
change would be necessary. To tna'
end. he said. there were three steps
The shipment of perhaps Sl0o.o0O.OOo III
gold TO this city from Ottawa, the heavy
~lQul1atiOn OF American securities ueth
in England and the selling OF British
short term notes. presumably Treasury
bills. in his country. The first two. he
pointed out. were unlikely. az England
did not want to part with gold at thi'
time. nor did the bankers OF this coun-
try wish a heavy liquidation OF Amer
lean securities from England. Londor
is said TO be loath TO part with IT'S
American securities owing 20 the GOOD
returns they pay and the fact that
money rates in England are 81 low.
Therefore this banker believed that z
credit for England would shortly be ee'
tahlished here through the purchase o.
short term securities, lie doubted tina
such "A transaction would he frownet
upon 10y the Administration. as II wouiC
In no sense h" a WAY loan. The fund
would remain here and be used for tn,
purchase OF grain. munitions OF war
supplies. SC. all Of which would be e
the interest of the American farmer
| manufactures and wholesaler.
Francs closed last night "a 5.c3 iol
checks and 6.22i. for cables. or
Wednesday they were quoted at 80.
Cor sight drafts and 5.23ia for cables
Marks were slightly lower at S+ia fot
checks and 50 a-ls for cables. italian
lire continued at the record low pric,
OF 567.