Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-03-17
BONUS Bill CARRYING TOTAL
$2,119,OO0,oOO TO HOUSE TODAY
FOREIGN EXCHANGE
HOLDS INTEREST IN
DOMESTIC MARKETS

New York, Mar. 16.-(By A. P.)
in the foreign ex-
change market overshadowed events
in other departments OF finance and
business during the past week. Well
posted observers believed that
Frances declaration of her intent
to balance the national budget. the
arrangement OF large French credits
abroad and the extraordinary rally
in the franc. marked the beginning
OF q new phase in postwar financial
history.
In rallying approximately 1 1-3
cents during the week to 81 cents.
the franc reflected both heavy COW
ering operations by speculative and
commercial interests which were
short OF this currency. and a restora-
ton OF confidence in the French fl
nancial position. This confidence
was fed both by the explicit declara-
lions for reforms by the French gov
eminent and by the belief that the
bankers hosarranged the credits in
the United States must have re-
ceived strong assurances as to the
French fiscal and foreign policy.
The broader aspect of the ques-
ton and that creating most inter-
est. was the impending report of the
Dawes committee and the chances
for a reparations settlement. There
was considerable optimism In the
best informed quarters over the out
look. The opinion was widely held
that the franc had. swung the bal
ance too far against France and was
likely to Increase the difficulty in
dealing with Germany.
The rally In the franc and the
demonstration OF Frances ability to
command financial assistance abroad
were considered to have redressed
the balance and to have made Ger
many more likely to accept the pro-
visions of Dawes committee plan.
In the grain markets q six cent
drop in wheat attracted considerable
attention. The reaction seemed to
be due to the liquidation Of specu-
fative accounts for the rise. The
official figures on stocks of wheat
on farms were disappointing, while
the executive action in raising the
duty on foreign wheat was without
beneficial results. AS consequence
the bulls sold out.
&ottOI
tone. although the spot demand con-
tinued light. The situation in the
dry goods trade was not particular
~ encouraging The February fig
ures for consumption and exports
were. however. better than expected
and the technical position of the
market appeared to have been
greatly strengthened by the recent
nine cent decline to 81 IL cents.
steel production remained in
tense. with the material going di-
rcctly into consumption. There was
n slight weakening of demand in the
east. but Chicago mills were being
pressed with second quarter orders,
The market was q little easier but
the change did not seem to be of
much significance.
Railroad car loadings for the
week ended March | amounted to
945. 600 cars, n new high record for
week during the first three
months OF any year. With such an
excellent volume OF traffic it was
assumed that railroad earnings dur
ing February would prove to have
been high.
An easier tone come into the mon
ey market despite the approach OF
the tax date. Call money loaned al
percent and the bid on the time
money was reduced to 4 IL. De-
lay in making tax payments because
OF the uncertainty of reduction
may have been factor. The fed
eral reserve statements showed
however, nm increase in reserves and
decreases in circulation and dis
count.