Evening star., 1921-07-18
foreign EXCHANGE
/ IS AGAIN WEAKER
No Exceptions in This Slump.
Germany Gets Cotton Loan.
Stocks Slow.
BY STUART p. WEST.

NEW YORK. July 1S.-Interest in to-
days financial happenings again centered
In the movement Of the foreign exchange
A further general fall. which carried
sterling to a new low for the year.
brought down Paris and italian drafts
sharply, but did not this time exempt
German marks, was unquestionaoly que
to the eager German bidding for doliar
exchange, partly as the most desiraoie
medium for paying the next instaliment
on reparations and partly to set up
credits in this country for the purchase
Of supplies.
The 81. 100000 cotton credit mentioned
in dispatches from Berlin this morning
as having been negotiated In America
was q small instance of what was going
on.
The main points about the advances
was that at option of the German Dor
ROVER they can be extended FOR as long
as six months. This Is a distinct de-
which has always favored short-term
loans for the export trade. and has con-
sequently been at the disadvantage with
European competition, where the policy
has been to build up custom in foreign
markets by advancing credits for com
paratively long periods. 1t is a sign that
the discrepancies of doing business with
this handicap upon American exporters
has at length been recognized.
Where the German demand for dol
lars is the supreme influence IN the
market. it is not easy to set the limits
for the present decline in the value OF
other currencies. Gold shipments can
not possibly furnish the offset they
might have done seven months ago,
because the three hundred and nifty
million dollars which has been trans
ferred to this country since the first
<Sf hA hA
maximum effort in this direction.
Then, again. the position is much
weakened by the fact that this is the
time of the year when Europe Is pro-
viding funds to meet deliveries OF
grain and cotton made through the
summer and autumn. and this calls
for large offerings of sterling, francs
and other exchanges.
The German accumulation Of dollar
kchange may let up when the money
has all been secured Tor the lnoemnity
payments due August 81, but on the
other hand the building up Of credits
here against the purchase OF cotton,
copper and other raw materials for
German account is an operation
which Is likely to increase rather than
diminish.
stocks Very Quiet.
In the stock market trading was
more than ever professional. Some
further weak spots were brought out.
in the now familiar fashion. under
operations for the decline. The un-
fortunate Atlantic Gulf and West
Indies was one of these. General
Electric was another.
The extreme weakness or Atlantic
Gulf naturally drew attention again
to the efforts which this company
has been making for long while
past to raise money to meet it's obli-
cations. and to the fact that so far
these have not been brought to sue
cessful cnclusion.
The argument against General Elec-
trio 10 that while it's s per cent cash
dividend is secure, its per cent div1-
dend in stock 1t not; hence. as an
per cent issue, the stock has been
selling too high.
This, Of course, Is purely the View
point of spectators. The stock divi-
dend has only recently been paid and
does not come up again for discussion
for almost six months.
In tardy response to the improved
conditions in the sugar market both
Cuba Cane debentures and the pre-
ferred stock were notably strong to-
day. The bonds sold five points above
the low of the last week. There are
only $25.000.000 of these debentufes
outstanding and those best informed
properties consider that at the low
they had discounted the worst pos
sible and that the margin for the pre-
ferred stock was at least equal to
that represented by the market price.
Besides all this a cent a pound in
creased price meaCs to Cuba Cane as
to all the sugar companies $3.750.000
on every million bags Of sugar. On
two and three-Quarter million bags
that Is approximately 100000. The
last sale made by the Cuban sugar
finance commission was at cents per
pound. 1t is understood that this is
which have loaned on Cuba Canes un-
sold output. So unless there is an
emergency, now unforeseen and un-
expected which suddenly forces on tn q
market with resultant crash in prices
the huge surplus in storage Cuba Cane
ought to be able to see its way