New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-30
Bankers Cease
Transactions in
German Marks
Withdrawal of Bills of Ex-
change on Berlin Prompt
ed by War Fears

Leading international banking houses
in the Wall Street district announced
Yesterday the suspension of dealings
in German exchange. Accordingly, the
United States is without an open mar
ket for German marks for the hrst
time. Bankers gave no official eN-
nlanation for their action in withdraw
ing from the market, but it was learned
from reliable sources that the prospect
Of war with Germany had forced this
step.
The Equitable Trust Company. one
of the largest dealers in German eX-
change. has done nothing in this mar
ket since early in the week. The Guar
anty Trust Company has also WITH
drawn from the market. Speyer d Co..
who at times have been reported 70
have acted for the German government
in exchange transactions, cea~ed oper-
atoms some time ago, except for Ger
tain dealings on private account one
of the large national banks which does
q heavy business with Northern Europe
has been out Of the market for week
or more.
One Firm Gives Quotation
Only one firm in Wall Street is quot
ing exchange on Germany. That is
Zimmerman e. Forshay, who are said
to have strong connections in Ger
many. and are on the British govern
ment's blacklist issued last year. A
representative of the firm said yester-
day they were still selling German
mark bills to their own clients, but
that the amount they had to offer was
limited. They quoted a price of IL
cents for four marks, the unit of trad
ing, yesterday, whereas the quotation
the day before was 90 cents.
It is understood that most American
banks have either withdrawn their bal
ances in Germany or are about TO do
so. This, it is pointed out, indicates
that important interests here look for
an early declaration of war and fear
the coniiscation of such funds as they
may have in Germany by the Teutonic
government.
Wireless Service Congested
An important factor in restricting
dealings between New York and Berlin
has been the congestion of the wire
less service. Full fifteen days are now
required to send a private message TO
Germany, and this has caused many
exchange dealers to refuse TO accept
business involving transfer by wireless.
This has applied to exchange opera
tons between this country and Austria
~ well, and the strength of Vienna
kronen lately has been due largely 20
the absence of offerings of such bills.
As a matter of fact, the whole mar
ket for Teutonic exchange has been an
exceedingly narrow affair for year
or more. As exchange arises out of
exports, and there has been practically
no interchange of trade between Ger
many and the United States owing 10
the blockade, only limited amount Of
exchange bills has been created.
In addition TO the difficulties of di-
rect transactions with Germany, brok-
ers say that "arbitrage" transactions,
or the making of remittances through
neutral countries, had been practically
cut off. Banks in Switzerland, Den
mark and Holland, it was said, had
agreed with the British government TO
restrict their operations. Four marks
have ruled around 90 cents in Holland
lately, and in the ordinary course of
events the Dutch bankers would sell
them in the New York market. where
they could get SO cents or better.