Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-04-24
WEST UNM0VED
BY IMPENDING
GERMAN CRISIS
Business Men Have Discount
ed Possible Discontinuance
Of Diplomatic Relations
With Berlin,

,r,., corrFspospfscG TO MORNING JOURNAL
chcago. April 23.--The change
coming TO American business through
discontlnuanee Of diplomatic rela-
tions with Germany will be small in
Tho immediate future Such action Is
zoo remote from warfare to cause any
advances in the rates for money or to
throw ordinary trade matters out OF
gear. This would not be true If our
money market were in strained
condition. but we have surplus funds
TO meet any emergency far in excess
of anything in the past.
Prepared For.
The first effect of any adverse
event is o shock which leads holders
of securities to sell them ii they are
nat of high class or If they are held on
narrow margin. Deeper than that
Is the sense of the actual condition OF
our finances, If rates were high.
and If many accounts, either In stocks
ar merchandise, we're held on pre-
carious margin. the effect would be
instantaneous. We have had notice
for many months of what might hap
pen between the two countries, and
the event has been pretty generally
discounted Our people have learned
not TO venture far from shore. Even
those who have rigidly guarded con-
tracts for merchandise for the allies
are in one degree or another distrust-
ful of them AS to the general con-
dition merchandising, one Is con-
vlnced by advices from all sorts of
sources that supplies are small. The
country merchant has not loaded his
shelves, because the output of the
classes of goods he wants has been
small and leaders have constantly
cautioned them against speculative
commitments.
Nation in Good Condition.
1t is hardly conceivable that a ma
fion could be in better condition to
meet grave danger, so far as con-
Germs its money supply and the mer-
chandise markets. The dangers are
Of very different character. Every
body is asking what our government
has done to provide means of de-
Tense, and the answer generally Is
rather dscouraging. Everybody
knows our shortage of fighting men
and the inadequacy of our navy. 1t is
natural to suppose that military sup
plies are equally insufficient. We !
have, however, the factories making |
munitions for other powers to fall [
back on.
Foreign Exchange.
The foreign exchange market in |
this city shows the effects of recent !.
happenings. The most notable thing |
is the advance in German exchange. !
Selling recently close to 10, it was !
earnly up to "a yesterday, and today I
1t is half or three-quarters of q point |
higher An authority in this city /
notes as among the reasons for this I
advance the stoppage of trade be- |
tween Holland and Germany, which |
curtails the supply of marks in the !
united States. On the other hands, i
Great Britain has allowed the release
OF some commodities from Germany /
hitherto held up in Holland. These |
movements create a confused condi- !
tion. For many months the tenden-
ey mas been to withdraw American
balances from Germany. This has
kept down the rates for marks. On
the other side of the account are !,
found Americans who are closing up {
pitments in Germany and to that end
must nave exchange. These transac- |
IONS have called for the purchase Of
pilis on Berlin and account for the
recent advance.
How Rates Vary.
me whole history of the exchanges
SINCE the war began In one OF great
interest TO the restricted class of peo-
PIE VINO are in touch with such af-
iairs. Early In the war sterling bills
performed feats Which the theorists
ueciared impossible, going far above
me maximum limit ever set for them.
Later on there was drop equally
to the rules laid down
III BOOKS. The cause was the extra
urinary changes in the financiering
. - N--Ao NOuutlI anu EuTOpct anu
IA the movement of merchandise. In
'"e course of these changes many
9peouiatorS in bills We're badly caught,
VI won large profits, according to
.'eir skill or luck as guessers. After
Tue war was we'll advanced and it was
Seen mat the Indebtedness of the bell
oe'igerents must be immense, the po-
.ent element was the difference be-
'meen the gold basis of international
.~ehanges and the paper currency of
'ae European countries.
u Is safe to say that if this coun-
- goes to war with Germany the
,saVes VIII cause no such disturbance
s,,io nations not parties to the con-
!, Nv az Great Britain has forced on
ZEN by her orders in council. We
I've not yet reached the point where
NO undertake to regulate the entire
JuIflmprHo ne 4.