Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-09-01
Boot Now on Other Foot.

Boot Now on Other Foot.
And while they were still debating
the situation began to improve. The
allies needed munitions and the United
States was the only available source
of production other than Canada.
Moreover. Great Britain was the
banker of the allies. and as such, I'M
der various agreements. paid for the
purchases. So plentiful did exchange
become that the boot is now on the
other foot and exchange is so low that
something must he done to prevent
further demora liza ion.
There is a wide margin between the
$3.50 of a year ago and the $500 OF to-
day. the lowest record of the equlva-
lent in American money for the pound
sterling. At today's low point sterling
exchange is 31ia cents below the nor
NAL market. or about ! per cent.
German marks are even lower, rela-
lively. than sterling exchange. This
exchange is usually figured on the
basis of four marks for "a cents, United
States coin At the present time the
ratio is four marks to 81 cents, or
about IA per cent below normal.
And the factories of the United
Stares are running full time. with muni-
tons their chief product. rapidly
consuming credit and necessitatins the
speedy solving of the exchange prob
lem by the British government.
Loan to British Expected.
New York financiers talk of the
necessity of a great British loan, just
as soon as John Bull brushes his pride,
makes his first issue of bonds, after
the manner customary in the United
States, and agrees to pay~not less than
> per cent and perhaps more for the
needed funds. The indica tions are that
his pride will be crushed
Great Britain is establishing credit
and obligations outside of her borders
very largely. Germany's credit obli-
cations are generally with the German
people.
Munition- manufacturers are not
taking sterling exchange in pay for
their shells. shrapnel, rifles. etc. 4
leading Philadelphia banker is author
ity for the statement that munitions
were being paid for by the fiscal agent
of the allies. so per cent with the order
and so per cent on delivery.
The one feature of the foreign ex-
change Situation that stands out clear
" is that Great Britain must pay and
the United States is reaping millions
between the s300.000,000 wanted by
Great Britain from the United States
when the war broke out and the
sl.25o.000.000 balance of trade for the
last fiscal year in favor of the United
States. with Great Britain on the
debtor end.
That the recent large shipments Of
gold and securities from Great Britain
have not relieved the pressure on ex-
change in any way has been due to
the fact that the shipments We're to
pay for goods delivered-''water that
has run past the MILL" as one banker
put it.
While national banks have been seek
ing TO obtain the right TO cooperate
I'm the orga nization of a joint stock
'3nk in South America. to further trade
between that country and the United
States and have so far been unsuc-
cossfui. private bankers have decided
that they will take advantage of the
op-ortunity
- Brown Brothers and J. & W. Selg-
man & Co.. both great New York
banking houses with world wide con-
nections. have organized the 'Mercan-
tile Bank of Americas. Incorporated"
with headquarters in New York city,
and an authorized capital of S3.0Dd.000
The bank is organized to carry on
business in and with the Latin repub-
Tics. especially with Central America
Venezuela. Colombia. Ecuador and
'"ru- proposing to conduct business
-apera 1tous OF the same lines as fol-
l"w",i h" I,rropran banks Of 4 simila--
{ ,I."c ..rr iu operations with central
j, ,.e"l"a :t"d Soath America.
l-TSes Pew 8 breSlds''. =.
l;',+-E. -Li"cr- e. ISIS :!"' u. :. q
are 80. n9asi,l, H.. WIN .,ir~cG ,insc
az .-cHr"..l M: nG ger.
Iaastoa Lsaas Active Nari.e..
f;us,aeyss -. the Vasi,..elor :,lccl;
Ez2i,sase' aas decidedly l;.ely and tue
srssfcn 'wa% the most interesting for
rang ,:ssCa tbs. The 2"ycnt Of seDtenl-
h-- Me retuS: OF a few traders and
nvestc>s 20 the city and he srd:t OF
activity and Strength in Lanst or
:. ssstn Gton = "#r stock. '''tr For 4
l. l.rp
-, asi oYr cd n Interest ard in vci-
.sues orr:;a Ica,. ia Shares IN al selling,
80 beIHr :he cCrtvnt price. ~itn some
- &QH@s ana "a w.; MA ut the close
1he Uffff nx gay tff7li .i:.urr having been
a.Dcof1cl :tiat, s. KS men AGED.
Nss;''g:.tol~<st~ 'EoEcd rat 90 fro y
% u s'jall 81 Ia. Ge.liir.- frcH. -.
t:e epe"jH-s ;-t;-c, H.. l3T r.:1 90.
~ "21 20, ..a.r'i .-t ,',- "'r--. g. t:;e
s"sSIch.
s;in;,ii s.,!os Of Cacita! rrsctlaf:- were
made y: "1fs and $.
In tirs bona list there Us 80 al
Improvement sales of Washington -. :
s. berg Er,-le n 'rI and - i:aiiN:,y
az :, 9 /.
Personal.
"ta: T.. j.. BELL. I,r"sid.as Of t;n
Ar.ric:,u Security I'd Trust Company,
...d =. T. sstelIwaern. president OF the
e ,cs4 i.u~t i'owDaGr. have returne,'
:f.1s e;.triidcG vscatiu'sE.