The Birmingham age-herald., 1915-09-02
Market in COnvulsions Throughout Day-Slight
 Recovery in Value Pounds
 Sterling Toward Close
DELEGATION OF
 BRITISH BANKERS EXPECTED TODAY
Noted Financiers Study Ab- normal Condition With
 View to Taking Steps to Relieve Money Situation

New York, September 1.-Foreign cx- change rates. led by the English pound sterling, played fast and loose today In checkcrbonrd moves over the low est plane of values ever reached In thA country.
 From extreme depression of A.5o at the opening sterling faltered to s4.551h in the late afternoon and fell back at tho days end to a .54. Francs dropped at a single stroke from 6.o3 to 6.os reaching their lowest value. Lires lowered around 6.5i, approximately 26 per cent below their normal worth, remaining there because they virtually amounted to nothing in the days dealings. Reichmarks zig-zagged betweeen SOS and s0is
 The entire market was In convusons throughout the day, although the ten doncy toward hysteria lessened at the close.
 Bankers were inclined to calm. rather than Mysteries. One foreign exchange ex- pert asserted tonight that he doubted If 9lo,oW sterling had been bought in this market today. Widely divergent quota tions he asscribed purely to speculators This view, however. was not generally accepted and there were indications that there had been large dealings in small amounts after sterling had strengthened to S4.52
 Relief Expected
 For reasons not seen on the surface, op- umism was more apparent tonight than analysis of the situation seemed to war rant. persistent report prevailed that relief was in sight. II was said the dele gation of British fnancers and treasury officials sent here 10 mend Encland's battered credits were almost within sight of lana The blue pencil of the censor has cross ed out all news of their sailing, but it was -uvht possible they would be found aboard The American liner St. Paul. due tomorrow.
 The censor. according 10 mall reports from abroad sent to newspapers here. has been greatly interested in the foreign exchange situation recently. Press cables. according tc these adviees. have been held up and edited to eliminate references to weakness. and in some instances. 1t Ia said. actual quotations have been deleted Incoming dispatches, 1t is reported. have met much the same fate. As result 1t was reported. high British officials are but poorly informed of the situation.
 
 sibility that rates would fall So low as to curtai American exports. Discussion centered on Great Britains remedial plsqs. none of which New York bankers pros ess is known here.
 In the absence of these plans it was assumed that the contemplated credit loan to be established here would be of national proportions in respect to Iartic- Ipation- Bankers from all the reserve enters of the country. it was said. would be invited to share in establishing the loans. The collateral. it was said, prob- ably would consist not only of appre, ed American securities but of Canadian and jouth American bonds, carefully selected, IS well
 In addition to this collateral bankers here plan to have the British borrowers cover it with an issue of notes thuo 1ouh'y rivetng the security.
 Abnormal Conditions
 From the oetterment in foreign ex- ,hanse rates, attributed by some authori- ies to the fact that the decline of yes- erday and today's early market had been too rapid, tinanciers turned to a study )f The abnormal and unusual conditions 'reated by the situation. investigation showed that 1t teemed with unusual de- 'elopments.
 Not the least of these was the discovery hat of all the American institutions in ending money to foreign countries. or eceiVing 1t from abroad the United States government alone could not profit by the ow rates, at leas so far as international money orders, issued by the postoffice de- 'artment, are concerned. While the Eng ish pound was selling in Wall street at { i.50. the postofflce, several blocks away. vas paying the normal rate of $4S7. Send ITS or money orders to England had to ay A.sl to the pound recipients of money rders from England were given that um here
 The same situation prevailed at the
 (Centinued on Page Two)