New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-09-09
The Dollar in Foreign Exchange

Weakness Of Russian rubles fur
nished the principal development Of
Importance in the local foreign ex-
change market again last week, Con-
tinued selling by banking interests and
spectators forced the price down 10
1864 cents. which compared with a
low of l7l3 cents a week ago and a
normal value Of about 5lli cents. The
capture of Riga by the Germans had
a further depressing effect on senti-
ment with regard 20 the commercial
position OF Russia.
Other exchanges moved narrowly
most of the week. Swiss francs were
substantially clear. but the decline was
insufficient TO wipe out the premium
that has been maintained on Swiss
remittanceS since early in the year.
The Swiss Bank Corporation in its
bulletin for the current month dis
cusses in an interesting manner the con-
oition OF the exchanges OF the world,
from = ueutra's viewpoint the Amer
can dollar, the bank says, suddenly
Gropped below par in Switzerland, TO
the surprise of many who had begun
TO regard il as an almost universal
monetary instrument and as shielded
from the abrupt variations TO which
European currencies have become sub
iect. Everything seemed TO favor the
dollar. The United States had accu-
INFLATED huge reserves, had the com
mercial balance immensely IN her
favor, had bought back great quaint
ties Of her own securities, and had
lent enormous sums TO the Allies. The
bank rejects the suggestion that since
the United States went to war she
has lost the confidence of other neu-
trails, who in any case had no such
balances in America that their with
drawal could vitality disturb the OK
change.
The Swiss commentator finds IN the
almost complete fiXation OF the Anglo
American exchange sufhclent reason
for the dollar moving with the pound
sterling in a purely neutral atmos-
phere. With respect to the pound the
Swiss bank remarks on the success
with which depreciation was so long
Tended off. 1t is implied that TINS sue,
cess might have been continued mad
not Great Britain put her credlt anu
financial power so freely at the service
Of her oversee dominions and her
Allies. Despite the enlargement IN
Tho dcpreciation of the French franc,
IN. bank holds that 1t has been re
iatiyely well sustained in Switzerland
considering how the balance OF IN
6ehtedness has grown more adverse
!, j. remarked how incomplete the mop
I;zetiop Cs French holdings OF foreign
securities has been compared with the
,,jSor With which similar measures
,yera enforced in Britain and Germany
(which is attributed partly TO the gre"t
or liberalism Of the French government
counl,d with the conservatism OF
"Teparrns Francaise.' 1t is judged tnS'
tbe solidarity now existing between tne
Mound and the dollar may comm UNI
cate itself to the currencles OF all inc
Allies. .;oa ,boso IF
ItaIy and Russia have fared "orsI'
Italy had no mass OF seeuriIlcs 70
realize. but has been able 10 e"iSrs
her expectations to switzerland. Ine
lire. the bank believes, VIII De anh1hs
the first to revive after the war DC
cause the old temporary ana peFIou;e.l
smipration will be resumed, TOURISTS
will pour in with gold, ana eNpoi;IIS,
of silk, wine, fruits and so ior'h VIZ.
take their old course. Inc prospoo'
Of a restoration of the heavily oep,e
ciated ruble is much more ienlo's
though the great natural resources Oh
Russia, it is acknowledged, might ieSo
70 a development of expectation OF
grand scale, provided security anu I've
,isr work are reestablished among
nanu,ation diverted from It's customary
ways BY revolution.
As regards Acknowledgment cur
rencv. the suppression of bank returns
obscures the situation and the eN-
Dedisnt of centralizirg dealings IN eN-
change works hsltingly; Ex a,i , 0p-
erstions are rare and the oiiciai quo
tations of the krone at home rarely
/ correspond with those in neutral cen
tres. At an early stage Germ IAN,
sought means of balancing the loss
If her export trade by obtaining
crsdits in neutral states and realizing
| ter holdings Of foreign securities heI
remaining exports, chiefly coal ana
{ ron. con sistently decline as war needs
grow ut home. The commercial paI.
snes is against Germany with hei