The Washington times., 1915-08-22
WEEK IN FINANCIAL CIRCLES

The fckle fortunes Of war have again
dominant influences In the
financial and commercial circles Of the
United States.
Just as the American public was turn
Ing from foreign factors to find conf
dence and inspiration In the prosperity
held forth by prospective bumper crops
and awakened industry. wen-aimcd
torpedo has precipitated what appears
to be the gravest situation that has con-
fronted this country since the European
struggle began by sending the British
steamer Arabic to the bottom Of the
sea and sacrificing American lives.
To further complicate the foreign re-
lations of the United States Mexico has
assumed a position Of defiance which
may yet make necessary Intervention.
a step that this country has SO long en-
deavored to avoid.
The immediate and most direct effect
Of the announcement Of the sinking OF
the Arabic was reflected In the stock
market For more than a week securi-
ties had been pryamiding profits. The
upturn, checked for brief periods. lad
extended over q much longer time.
Many traders. particularly those Of the
professional element. had been crying
wolf," and warning that some sudden
happening would shatter this market.
the technical position of which was
weak, owing to It's over-bought condi-
ton.
When the announcement Of the White
Star liners fate and the death Of Ameri-
cans was made. the prediction came
h,,x ~ 20 sn rknd n oYfont
had been expected by many. While
several Of the securities which have en-
joyed phenomenal advances suffered
severe, losses the market received
stronger support than the bears had
anticipated. On Friday and yesterday
there were reactions which measured
Q and 10 points. but they were recorded
in issues which had advanced as rapidly
as they fell. The stable issues which
have long enjoyed public favor did not
react more than or points.
Until full report on the Arabic dis
sested BY the Administration officials
the stock market will probably remain
in q nervous state and new undertakings
requiring capital will, in all likelihood.
be permitted to drift with the tide Of
events.
No Improvement has been made in the
exchange situation during the past week.
Sterling dropped TO a new low level by
selling at AGA. or a shrinkage Of nearly
There have been rumors that Great
Britain and her allies would endeavor
to relieve the depression by further ship
ments Of gold. but American bankers
are endeavoring to discourage such a
held in New York to discuss means for
bettering the exchange conditions and
several bankers were advocating the
esta tabiishment Of a British credit in New
York which would approximate $780,
900 900.
British bankers. It was said. had con-
templated seeking a credit Of 800 900 o00
but the American bankers contend that
this would merely afford temporary re-
lief. as much heavier payments will
allies when the nunition contracts
placed with American manufacturers
are fulfilled.
The two principal means Of securing
the credit which have been suggested
are for the selling Of British notes in
tiles held abroad as collateral. The
latter plan is receiving strongest sup.
port here, as 1t is recognized that spe-
! cial inducements would have to be Of
fered to effect a sale Of British notes
in this market.
ing American securities, and Britain
recently deposited more than $50, ,OO0, ,O0f
worth Of such securities with J. p. Nor.
gan & Co. for a similar purpose. The
Arabic disaster. however 1t is feared
may discourage further steps in that
bottom securities destined for New
York valued at from 100000 900 to s15..
| COZ, ,Cn0.
That the need for sterilization Of ex.