Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1920-01-22
SLUMP in MONEY MARKET

Utter collapse and decentralization
overlook the foreign exchange mar
ket in New York yesterday resulting
in new low records for British,
French, Italian and various other
European remittances. The rate
for British demand bills fell to
S3.60% or 81 cents under It's pre-
vious minimum, and Paris checks,
italian lires,and Belgian francs broke
in corresponding or greater degree
/ Dealers in exchange again were in
clined to attribute the collapse to
such we'll known and long existing
conditions as the unfavorable trade
balance against almost all the for
eign centers.
In other quarters where the stu
aticn has given rise to increased mis-
giving's the slump was more direct
ly associated with the process of ode
-fUtion" due to the stringent credit
conditions demanded by the federal
reserve board
The latest reversal in exchange is
believed 20 bear close relation 10
the policy recently iEaugurated by
the central bank, which aims - re-
I duce all unnecessary credits, II and
individuals have been holding large
amounts of exchanges thereby tying
up enormous sums of cash. The
LIQUIDATION and that which is ex-
pected to follow viii have the effect
of turning frozen credit into liquid
form.
Trustworthy reports agree that
there has been much speculation in
foreign exchange and drastic OWN
Df rfA L. "a
sential to help stabilize domestic
monetary conditions.
Francs, with normal or prewar
value of about 10 cents, fell to the
point where it took almost twelve to
purchase an American dollar, while
Tires on the Italian exchange, ordin-
arily ora parity with French quota
tiops| dropped to level where al
most fourteen were required to equal
the American dollar.
No important form of exchange,
not even rubles, which are only
nominally quoted at AZ 1ac to 43% C
against the pre-war quotation Of
51h cents, has suffered as much as
the German mark. Quoted before
the war at 23 1-Sc, the mark has
dropped to slightly under l 1sc.
DISCREDITED LEADERSHIP
The most thoroughly discredited
alleged reformer in Iowa is one that
has labored in season and out OF
season to get the farmers of Iowa
and the middle west to line up with
labor unions, railway brotherhoods,
non-partisan leagues, !. w. WIS and
the odds and ends of disloyalty and
unrest. The farmers through Wig
orous appeals were urged repeatedly
to be present at a meeting in Des
Moines to be addressed by Glenn
Plumb in which it was announced
he would make clear his plan for
railway management. The meet
ing was held as advertised and
Plumb was out in full force, but the
farmers preferred to remain at
home with their families and did so.
Then it was announced that great
conference of astute reformers was
TO be held in st. Louis and this fell
low, bent in getting the farmers
lined up with the bunch spoke OF the
coming gathering in glowing terms
and among other things said:
"The callis signed by some 500 men
and women of high standing. A
group of earnest, patriotic, able men
and women in whose hearts and
hopes lies the future welfare OF Am
erica"
Again a personal plea was made
for the farmers to make ii a point
to be present. but not a single farm
er showed up.