Albuquerque morning journal., 1915-02-17
FOREIGN MONEY
EXCHANGE RATES
MUCH CONFUS
More Than StO0,00O,000
Worth of War Materials Has
Been Exported; Difficult to
Get Gold From Europe.


| New York, Feb. 16.-Demoraliza
tlon in the foreign exchange market.
has affected the large financial IN
terests TO such an extent, In the opin
I ion expressed today by the qualified
authorities, meeting of internation-
al bankers may soon be called {,
adjust existing abnormal conditions
Sight drafts on London sold down It
/ 4.l9 per pound sterling today the
4 lowest quotation in a generation. Dul
! recovered before the end of the mar
! ket session
Small importation of Gold.
The drop in exchange was followed
/ by announcement of another small
/ Importation of gOld--S2, SOC, 000--that
amount having been released by the
! Bank Of England from the large sum
now To It's credit In ottawa. Exchange
between New York aud most parts OF
continental Europe, while less unset
tied than at London, also pointed 10
acute strain. Francs, reichsmarks
and lires were quoted at increased dis
counts by local dealers. while some
Of tho more conservative banks AM
banking houses declined to engage in
any actual transactions.
Trade In War materials.
Tho situation Is largely the out
growth Of countries who have extra
exports 10 Europe. chiefly of war mat
terlals. In the first four months cf
the war. shipments of such supplies
aggregated almost S5O,000,000 an1
according to trustworthy accounts
they have passed the 500, coo, 00J
mark now These figures do not in
elude the enormous export of food
q .t a "a
have gone out IN Unprecedented vol
ume since the beginning OF 1915.
Foreign Money Used.
Except In instances where credits
had been established here, payment
for these exports was made in pounds
sterling. francs marks and other for
cign money. These bills are now
pressing on the exchange market and
their extent coupled with England's
refusal to release gold in sufficient
quantity TO meet the demands. mas
been me primary factor in depreciat-
ing rates The situation has had the
effect of putting all foreign gold at
premium.
The market has become 80 derang-
ed that a number of contractors ami
other exporters of supplies. it is state
ed, decided to demand future pay
ments in dollars. This plan will ne
eessitate the placing of additional
credits in this country by foreign
governments and individuals. The
British and Russian governments
have established such credits but che
amounts available at this time are
said to be Inadequate
j. L. Morgan's Statement.
Early in the year. when exchange
between New York and London had
been restored TO a normal basis. j. !
?. Morgan & Company issued state |
ment which stated in part:
We are authorized to state that if !
turing the continuance Of the war. or 4
'or one year. thereafter, the ex-
'hanges between The United States
IND U1ited Kingdom should become
iuch that gold exports from either
country to an unreasonable amount
night result. committees of bankers
hall be appointed in the United
states and the United Kingdom, re-
pectivoly. 10 consider plans for deal
ng with the situation BY such meth
IDS as may seem at the time mutu-
lily desirable"
In the expressed opinion of dealers
n exchange and others affected Dy
he prevailing situation, the time has
ome for the appointment of these