New-York tribune., 1919-08-31
Silver.-London, SD; New York,
$1.081a; Mexican dollars, 847s @S8asc.
Dollar in Foreign Exchange

Toward the end of last week rates
on London, Paris and Rome declined
again, after a recovery for a week.
Bankers expressed the opinion that
they could see no permanent improve
ment in exchange until comprehensive
credits were granted to the European
countries or until they cut down their
purchases in this country to large
extent.
No indication of change in the pol
icy Of the British Treasury and banks
to let exchange go where it will came
last week. In fact, the report that the
Bank of England had reduced its rate
of interest on foreign balances from
AZ to 3 per cent indicated that they
intended to pursue still further their
policy of removing all artificial cX-
change pegs. The embargo on expors
still exists. although some sentiment
is developing for its gradual rclaxa
ton. That this is not beyond the range
of probability was indicated when some
weeks ago the British authorities no.
titled South African gold miners that
they were thenceforth to send the
metal where they would, instead of ex
clusivcly to Great Britain. Bankers
said the conditions of foreign exchange
would be shipped to this country, as
the owners of the metal could thus get
dollars, which are at premium, in
stead of pounds, which are at dis
count of more than 10 per cent
In discussing TIE meaning, in terms
Of foreign trade, of the discount of the
Canadian dollar in New York, the
Canadian Bank of Commerce, Of To-
ronto, says in its monthly letter:
The steady advance in the premium
on New York funds seriously affects
those industries which depend upon
raw materials obtained from the
United States. From that country, dur
ing the year ended June last, cotton,
iron and steel products to the value
of $216,000,O00 were imported. Other
imports essential to manufacturers, the
cost of which will be similarly affected,
are valued at q large sum. The in
evitable advance in cost to the con-
sumer is one of the causes of the ex-
listing social unrest, and this cause
would at any rate be partially removed
If the demand for New York funds was
decreased by lesser imports of luxurics
and non-essentials.
I'm March, 1918, it was pointed out
IN supplement to our letter that the
appreciation in the rate for United
States funds was at that time accen-
tuated by the operation of several alb
normal factors, such as the dsorgan-
lzatlon of transportation and the con-
sequent check upon exports from Can
ada the enormous imports from the
United States, and the effect of the
credits which Canada had granted the
United Kingdom to assist in procuring
war material The balance of trade
with all countries in favor of Canada
at the end OF Dccem Der, 1917, was $685.
100000. At the close of March, 1918, it
had grown to $623, 900 For the
succeeding year, ended March. 1919. it
was S343,0o0,000. These balances are
partly offset by advances from the
imperial Treasury for the maintenance
OF our eXpedtlonary forces abroad, but
even after making allowance for these
large. In the ordinary course of events
TINS would have resulted in the ex-
changes being favorable, but the factors
Whlch caused the high premium on New
OK funds IN the early months of 1918
are still IN operation, in some respects
IN more accentuated form. The credits
being furnished to Great Britain are
still considerable, and substantially off
set that countrys debtor balance to us.
ana III dudlllOn we are furnishing
credits to other European countries.
The remedy then suggested applies
with equal force to-day; it is to in
crease exports to the United States.
and to curtail imports from that coun-
try. While the war was proceeding
Britain obtained credits in the United
States for purchases there, and it was
hoped that she would also arrange
credits there to pay for purchases
made by Canada to facilitate the pro-
ductlon of war material Now that the
war IS over, Britain apparently does
not favor the creation of further debt
abroad. and therefore it cannot he
hoped that part of her debt to Canada
viii be arranged by her assuming orr
liabilities in New York. The adjust
ment OF our adverse balance there must
apparently await trade developments
II, the shaping of which the present
adverse rate of exchange is not un-
desirable"
Cost of one dollar0
Yesterday. Year ago.
In English money. S1.14 STOP
IN French money!. 1856 1903
IN Dutch money..... 1903 .7e
IN Swiss money ... 1903 .78
In Swedish m0nov 1no on