The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-06-15
DROP TO LOWEST BY
STERLING EXCHANGE
Heaviest Imports Of Gold Now
Fail to Check Great
Slump.
DEMAND NOW AT 49, IL

Sterling exchange dropped below all
previous low levels yesterday when p.
mand fell to an. The most striking
fact in connection with the break In eN.
change on London Is that it came In ~
face Of the heaviest gold shipments f,r
ever seen. Foreign exchange brokers
said last night that they could not tell
how low sterling would 20 on the pres.
ent movement or what the outcome Of
the decline would be.
In some banking circles. firm belief IL
expressed that the present situation can.
not continue n great deal longer and
that 1t will be necessary for Great Brit.
ain either to establish a credit In this
country or float a war loan here. At the
offices OF j. +. Morgan n 20. II was said
that no steps to this end had been taken.
The usual device employed TO stop the
decline i'm the exchange OF any country,
namely. the shipment OF gold. has fsilsl
i'm this instance. Between June : and
June IL, j. J.. Morgan a Co. have i'm.
ported in excess of Sl7,5o0,no0 In gold
from the Bank of England depository In
canada. yet exchange on London has
been declining steadily. When the Nor.
gan firm began buying sterling exchange
and bringing in gold on the present
movement. they have imported sj2, hoo,-
OOO within n few weeks. hut as soon
as that firm ceases to buy exchange On
London the prices slump with amazing
suddenness. This fact was In evidence
yesterday.
Lazard Freres were said to he fairly
large buyers of sterling exchange yes'er-
bay. 1t was rumored that they might
once more take NJ the importation n
gold from Canada. IL was said last
might that there wac a heavy short
interest in the sterling exchange market
| Foreign exchange men take this as orA
of the best indications that exrhang.
will probably 60 lower.
Partial confirmation ~ the cable 70.
ports that French banking institutions
are already buying up American securi-
ties held in Franc" with a view 10 de-
posting them with some institution 10
that country as collateral for a large
French credit here. To- be used In N.
purchase Of supplies, was secured Yes.
tcNlay. A prominent international
banker. when questioned denied that hs
institution had been sounded on mo
proposition. but added that he believed
there was something In il" and 'h,t
the initial steps We're being take.
Should such a plan be carried on hy
Fra"ce II would. II is believed. he 'Hs
first time that this ountry has .v.r
figured in such n transaction.
The gold impor;ltious since January !
were increased 10 sl03.S i5.0Oo yes'er.
day by tine recent Of ST. .n0O from
the Bank OF England dcpositary n
ottawa by !. I. Morgan n co Il s
expected that more gold will soon follow
This brings the total gold sent 10 this
country from Canada since January I M
to S7T.?2".OOO. j. l.. Morgan 4 90
have brought in practically one-half tn
total.
Demand sterling closed last night At
I77i, with cables at 4.77H,. This com
uares with AS for demand and i1Ni.
FOR cables OF Saturday. Francs We.
easier and were close to the low p, ord
prices reached a few weeks ago. Franc,
closed at 54iia for checks and : 81 To-
cables. on Saturday they were quote
ut 5.i4 for checks and 543ia for cables
Marks also were easier at s@N Co.
sight drafts and SO 7-16 for cable,
This compares with So 7-l6 fpr ss'
drafts and s2ie for cables AT tho clos.
II last week. Italian lire was lowe. ~
5.92ia, against SCI on SATURDAY., willie
AUSTRIAN. kroncn closed u%ncharro1 at
10 3i.