The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-02

5k to 5lh cents In the pound yester-
day. Is a result demand sterling sold
at $50, with cables at 4.51, as COM
1854 for the latter the day previous.
The depreciation In sterling over night
was thus equal to about 1 per cent.
and placed exchange on London at a
discount OF practically 7 per cent. Al
those prices demand sterling was selling
36S cents In the pound below Its nor-
mai parity, which Is 4.s6%. Toward the
close Of The market, however. a rapid re-
covery set in, which carried prices up
to ass for demand sterling and 4.5o
for cables. At these figures the close
ranged only from u cent to u cent
In the pound below the prices regis
tered on Tuesday.
In spite Of the break in sterling rates
TO hitherto unprecedented prices the
leading bankers were inclined to view
tho situation with calmness n to
point out that while the problem was
a serious one there was nc cause Tor
much of the hysteria which has been
In evidence regarding the situation. II
was pointed out that the problem is
largely Fngland's. iust as a year ago
when sterling was selling at 81 the
| pound. the problem OF New York's pay
ing its debts was ours. At that time,
IL will be recalled. there was much
needless talk of New York city de-
faulting on It's $50. 900, 900 or more ma
turtles which were about to fall due
ahroad
Now york n voar apo had no inten-
,,on ~, d.,, ,,,i,s nm har payments lust
e.a... a, -, w. r,oro 90 MAKE them
~. ,ha raa,,,ar rate England has
49, - ,n.an,to, nor de.,re RI avoid
.n.,n - h,,is hsre Ranrssentatiyes
p"'n ha,r,ng ,o,se. clo,ely
w n u,s Ena,ts, nurchase. here
conhe'.eu ~ 4. nn,na ~ goid
state nat Ensiano 70 p"s, No. 80
Tor an ner war nna'eFla.s a"u - A. ~
seehis very "i"i"e "
-
He''e' r'""
Bankers are inclined to take comfort
in the fact that up to now Great Brit
ain has made no formal representations
to New York for the opening OF n
,anu feels she is being too greatly irked
nv seeing her exchange depreciate and
naying go,d FOR her purchases she
vii, than mako oyertures to the leading
anker. Of this country. II Is not n
iIIaiv that when the British and French
$4,000. orr,ve here shortly they
viii have some sort of. a proposal for
,na re,ieS az the situation to lay before
49,. hant.rs
~, thu prominent
,.t. oi,y Zoe, that the present
.n y ,rs.,. ,houeh n il. opens new
go. oananno and trade TO us. They
nein,N 30, o,r imnorts from Great
pu,.a III, ha Greatly Increased II the
$500, danrec,ation in exchange con-
.in,a. ,nd Seel that in this fact there IL
a nartiai solution Of the problem. II an
American importer can purchase goods
!, nenna hroneh having for them in
sterling he will do so. The tngiisn eN-
porter suners no Dss 'neleus, iW 10
standard OF the BRUSH soVerelsn IN
England is just the same as u always
was. Thus England as a result OF tne
depreciation stands n chance OF increas-
ing her exports to us. whiie we ave tne
opportunity or purchasing rneN
goods at a big discount anu ~ o"e 10
| the loser thereby.
Banker generally reel INA "hen a
credit or a loan IL negotla'eu IN this
country for the account OF Great britaIn
II will probably De Oh 0o'ia
nature. 1t may consist or the saIe Oh
from 500. 900, 600 to Sloo.ooo'ooo sr'.
the American market would take The
rest of the credit Will propaoiy nave "
be established through the oeposI, Oh .
curities as collateral; i u nM1s na,
the greater part OF tnese seSu,l' ~
be American STOCKS anu ~ ,ha,
England. bu' IL 30, ,ooetber
| England will be able 10 get together
anywhere near the amount OF American