The Washington times., 1915-06-20
WEEK IN FINANCIAL CIRCLES

While foreign commerce continues In
heavy volume, and domestic trade, as
evidenced by mercantile reports, 10
showing limited but steady improve
ment, the almost unprecedented foreign
exchange situation, coupled with the
still pending international problems. has
created a period Of hesitancy in finan-
cial circles.
During the past week the pound ster-
ling, the medium by which values are
measured in world trade. fell to the
lowest quotation in over century
Compared with the American dollar. It
Is now at a discount of about 2k per
cent. This is a sharp fall for setrling
exchange. but it is not near SO great as
the discount of the exchange of other
European nations. French exchange Is
discounted about per cent: Italian To-
German 16, and Russian "A. The de-
moralization, as Is readily recognized,
Is due to the war which has dislocateo
the foreign trade Of the United States
with the belligerents.
With ths credit balance steadily grow
ing in favor of this country foreign
exchange must continue to fall unless
some step is taken to offset the heavy
shipments of goods to the warning
nations. Europe cannot sell to the
goods. mainly because its countries
have not such to sell. except in lessened
quantities. The payment must be made
in, gold or securities. The latter course
financiers. The supply of gold held by
this country is already becoming
burdensome. and with money cheap,
these bankers say that the investing
public of the United States would
readily absorb large part of the hign
grade rfCan eaNnriflpS held abroad.
The principal satisfaction found In
general conditions Is centered in the
domestic outlook. Crops are somewhat
backward, but the present indications.
with greater acreages under cultivation.
are satisfactory. The steel industry,
one of the greatest in the country,
shows a decided gain and Is now esti-
mated to be operating at about 80 per
cent of capacity as compared with 10
per cent month ago. Prices are
stiffening. and the building trade ex-
hibits symptoms of recovery.
Credit bodies report that failures are
each week showing a marked decrease
as compared with few months ago
and are now only slightly in excess Of
the number recorded in the correspond
ing period last year. Collections are
fair and improving, and the demand for
where there Is now a scarcity. Rail-
road earnings continue to be disap-
pointing. but with the harvest season
at hand 1t Is practically an assured fact
that the gross business Of the larger
systems will improve rapidly within the
next few months.
Almost since the very outbreak of the
war the American press has daily de-
voted much space to a recital Of vast
M A Arc tnal lf,V o. - "A
first seven months, the shipments were
confined primarily to foodstuffs, horses
and mules. 1t Is only recently that the
munitions which have kept the nation s
factories at overtime operation began
to move.
Outward manifests filed at the GUS
tom house in New York, the port
though which the majority of the con-
signments move. show that during the
month Of April. the first month in which
the value Of goods Of this nature waf
in excess Of $3o.ooO.ooo The shipments
for May and June are expected to be
much heavier.
The shortage Of ammunition in tn,
armies of the allies has spurred thu
American manufacturers to ever
greater efforts than had been exerteC
to fill their contracts, and as each or
der Is filled and disposed of anothe
is found waiting to occupy the atten
tion of the manufacturer.
Reports were circulated in Wal
Street yesterday to the effect that tn
Russian government had placed witt
the Baldwin Locomotive Works an or
der for $1,000 car wheels. the larges
order for wheels ever placed in thi
country with a single company. Only
few days ago announcement was mad
of the placing by Russia and Franc
Of orders with companies In the Unite,
States and Canada for ia locomotives
sixty-four for Russia and nifty 70
France Russia has been buying thou
sands of cars. During the past weel
France gave orders in the Unite
States for 3745 cars. In addition to tn
order for heavy locomotives Russia 1
credited with having placed an orde
with the Baldwin Locomotive Conpan,