Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-12-14
FOREIGN EXCHANGE
IS NOW REAL PERIL
0bscures All Other Develop
ments in Securities Market
in Past Week.. -

NEW YORK. December 10 (by the
| Associated PreSs).-Although foreign
exchange had been moving steadily
against the leading countries Of issue
! this week that the movement as
sumed such threatening proportions
at this center as to obscure all other
developments in the securities mar
ket.
With the British rate at a discount
ton the far greater depreciation in
French and Italian remittances, bank
ers and other dealers in exchange
began to express grave concern and
refer to international bankruptcy as
something more than an empty phrase.
Menace to Trade Expansion.
Considerable difference of opinion
prevails among financial experts and
economists as to ways and means for
overcoming existing conditions. All
concur. however that the foreign
credit deadlock constitutes a serious
menace to this country's plans Of
worldwide trade expansion. There
! was heavy liquidation during the
week Of foreign-owned American Sc
curit1es. chiefly railroad stocks and
bonds. but whether this resulted from
pressure or desire on the part Of
the sellers to avail themselves of ex-
|, change conditions in this market is
d oeDataofe question. D.,
Rail Situation Complicated.
In its immediate aspects the rail-
road situation was further compIi-
Gated by indications that permanent
measures for the return Of the trans
portation systems to private owner
snip are not likely to be enacted bv
the end of the year
Inc other noteworthy event which
helped to bring about the further
shrlnRage OF stock market values was
the furry in call money and the
greater scarcity of time accommoda.
lions. This was largely prom pied by
the FEDERAL reserve bank, which made
only moderate advance in interest,"
and rediscount rates, but thereby
served notice that the local credit
situation. in it's judgment. reouirad
further reimbursement
Tone Better Today.
Sentimental factors contributed 70
the better tone of today's market
moderate rally in foreign EXCHANGE
removal OF coal restrictions and as
surances of easier money in the com.
ing week induced considerable short
covering. There also was some buv.
ing for the long account.
The strongest features of today's
market, however, were the specula-
tive issues in the motor, oil and equip
ment divisions. with a liberal admix-
specialties.
Gains Retained.
Extreme gains of to Sk points
in the many stocks which crumbled
| the day before were regained at the
! active finish, many leaders closing at
maximum quotations. Rails played
| no part in the trading, that group
| showing further irregularity, except
for Canadian Pacific. which made a
net gain of TX points, but recorded
| loss of ~ points for the week.
Sales amounted to $4,000 shares.
Bonds followed the course of the
stock market. standard industrial is
sues hardening. Liberty and victory
| bonds were inclined to ease with sew
| eral of the international war flota-
| tions. Total sales. par value, aggre-
gated $12,S75.000. Old United States
bonds were exchanged on call during
the week.
A decrease of about $25,0o0.0o0 in
actual reserves of the clearing house
! reduced the total excess to little more
than $2s,000,000. while actual loans
| were increased by almost $3S,00O.000.