The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-24
FOREIGN EXCHANGE
Is DEMORALIZED
New Low Records on Cont
mental CentrpS-Furthcr
Decline Feared.

The foreign exchange market closed
last night in a state OF decentralization.
Exchange on practically every leading
financial centre Of the Continent had
reached new low records. while sterling
exchange was within a fraction If its
lowest figure. t79. reached last eek
Leading foreign exchange brokers
confessed that the situation was becorn-
ing worse n that they did not know
where the declines would stop. The
drop in continental exchange was the
feature of the day. The four great sys-
TENS OF Continental exchange are francs.
marks. lire and kronen. Every II of
these is selling at from Is, per cent. TO
~ per cent. or more below parity. The
parity of Italian lire is 5.25. lire. like
francs, being estimated on the basis ~
the number required 10 equal n dollar.
Exchange on Genoa closed last night at
SIG, a decline Of over 10 per cent
Francs show the smallest decline OF al.
their parity being BIS. wh.ie their pres
ont price is %, a declin" of Ia per
cent. The exchanges of the Teutonic allies
have suffered the worst declines NJ tho
four. with marks selling AT SO and kronen
at Is. At the above rates the decline IN
marks from o5 to SO represents a loss OF
about - per cent, while krone having
declined from co.'s to l6. show a loss OF
about 20 per cent.
The reason for the decline in lire and
francs Is that both countries. while ship
ping very little TO US since the war, have
been exceptionally heavy purchasers in
our markets and have drawn heavily on
their credits in this country, while We
have built up ours as never before
Italy has been buying horses in great
quantities and is said to have purchased
all of the spaghetti wheat crop In this
country. France has been purchasing
everything that a nation carrying on a
great war would need.
The reason for the decline In Austrian
and German exchange is that every one
who has credits in those countries
wishes to sell them rather than see
them go lower should the Allies win, a,
is the general belief in the financial
district. Moreover. those who possess
credits in Austria and Germany are
unable to exercise them TO any ID
vantage because Of tho practical state
of blockade.
Demand sterling closed last night at
i.7oS. with cables selling at &7sta
would shortly call upon US to exercise
the agreement to obviate extraordinary
gold shipments. a conference Of bank.
ers was held yesterday at the offices OF
J. y. Morgan q Co. The meeting lasted
from 4 o'clock in the afternoon till : II
the evening. Those present were J, p
Morgan. H.. y Dawson and Frank A
Nanderlip. president of the National
city Bank.
Following tho meeting thos" present
sad nothing definite a been don,
and that the situation had been di.
cussed merely In an informal manner
The FIRST overtures for active steps. II
was said, must come from England
and that as yet none had been received
The financial district expects that sucl
a request will soon be nae and tina.
our bankers are getting ready to NEE
the call.
II was learned Yesterday that tn
International Banking Corporation nov
has some 500. 900 yen in gold on tn
way from Japan. Japan has sent abou
$40, 600, 600 to this country since tn
outbreak OF tho war. This IL due 4
the fact that we are buying very It'll.
raw silk from Japan this year com
pared with other years. while Japan
being at wal with Germany, Is buyin,
moro goods from US.