The sun., 1919-07-18
COMMITTEE WILL
STUDY EXCHANGE
Association Appoints Bankers
( to Suggest Remedy for
Present Conditions.
STERLING IS AT NEW Low
Apprehension Of Disastrous
Results If Situation Be Con-
tinued Is Felt.

Sterling exchange continued on its
rapid downward course yesterday morn
ing when the market reopened for the
days business, and before noon another
new low record had been established
at 4,26h, a drop of about 8 cents from
Wednesdays closing figures. An ex-
exceedingly sharp rally later IN the day
carried sterling back to about ass, from
which 1t sold of before the close Of
the days business.
Bankers and business men, particular
ly exporters, have begun to express ap-
prehension OF what may happen II the
present fall in sterling goes on. While
many bankers are predicting lower rates,
they are racking their brains for some
means to check the movement, but moth
ing tangible has been developed. An
nouncement that at a special meeting
OF the Association of Foreign Exchange
Bankers held on Wednesday night a
committee was appointed to give close
study to the exchange situation and
suggest, II possible, some remedy for
the present condition Of the market was
made yesterday.
3. A. Duis of the National City Bank
was made chairman OF the committee,
the other members of which are w. H.
North Mclean of the Mechanics and
Metals National Bank. c. w. Higley OF
the Equitable Trust Company, f. L.
Appleby OF the Union Bank Of Canada
and r. E. Saunders of the National Bank
Of South Africa So far as could be
learned yesterday nothing definite In
the way Of q corrective measure had
been worked out or presented to the
committee for consideration. The COM
into the exchange situation from every
angle and endeavor to arrive at some
plant which to some extent at least
will relieve the present situation.
Exporters are beginning to feel de-
cidedly blue as a result OF the exchange
market. Many OF them have large bills
which they mus realize on, but which
will represent substantial losses to them
at current rates. Ono banker declared
yesterday that a ray OF light in the
present situation was in the waking w
of exporters to their responsibilities IN
connection with foreign trade. He said
that exporters had been lukewarm on
the proposal to participate in credits to
foreign countries, preferring to leave
the whole thing to bankers, but that
they were beginning to realize that I'M
less something was done very soon they
would lose not only considerable money
On bills which they held. but stand to
lose a tremendous amount OF business
from abroad. AS an object lesson. tbs
banker declared, there we're some good
features about the present situation.
As to the extent OF the short interest
In the market, there Is a wide divergence
of opinion among leading foreign ex.
change bankers. Some of them declare
that there Is relatively little. while
others insist that the short interest Is
tremendous. Still another banker said
that he; could, only gusss at tina Amount
OF the short interest. adding that ut
might be f25,oo0,o00 or 1t might be
ESQ, 900. 900"
Nothing new has developed in the way
of extending credits to foreign countries
TO correct the present exchange rate, &c
far as could be learned yesterday. Bank
ers are content apparently to dt bacl
and await the outcome Of the bill intro
duced In the Congress by Senator Edg,
New Jersey and providing for a ire.
mepdous corporation financed by private
capital but under Government control
to handle the situation. Bankers have
been understood to be IN favor OF thu
distinctly private corporation with &
State charter but are declared now Il
have switched their attitude to one o
favor toward q larger concern with
Federal charter and under Government
control. II is not unlikely that financia
interests generally will favor the Edg
proposal, in principle at least
One man close to the foreign trade in
terests said yesterday that some of tn
reasons for the present condition of ex
change were not very apparent H
added that there were some reasons VIII,
America should not be IN such a hurr,
to correct It. He admitted that Amer
ica's foreign trade was In danger o
long as present rates were allowed t