The Waterbury Democrat., 1933-05-09
BY MAX BUCKINGHAM

NChtNu ANSS hu&aHAGktth
 New York, May 0 - (UP) =
 The value of the United State
 dollar shot upward today as trad
 ing opened in the busy none
 marts of New York.
 l All foreign exchanges decline, with the Dutch Guilder the chic
 loser, opening 52 points under tn, | closing quotation yesterday. Tn
 at $3.90 3-4 and francs, lira, mark, and Swiss francs all showed de clines. This meant a gain for tn, American dollar, for as the none, of other countries declines tn,
 United States dollar rises core spondingly.
 The New York market was per. forming in conformance with the money markets the world over, fol today there was a decline in for eign currencies, based mainly or weakness in the Builders = based on reports that Holland must take some restrictive measures to pro- tect her gold supply and recur- rent reports that France might do something about her gold stand ard.
 Foreign exchange departments in the banks of New York's finan- cial district hummed with activity.
 A scene in the department of the Bank of the Manhattan Company is typical.
 Six people sit at long table. In front of each is a double row of telephone signal lights. There are direct wires connecting brok- CTS, departments and persons who deal in foreign exchange. At the right is cable wire, in almost instant communication with the foreign exchange centers of the old world. ,s..4-. <, .,
 There is a continuous trade in money, ranging from currencies of the Far East to those at home.
 Within five minutes come three orders = one to sell and two to buy - from these scattered points: Amsterdam, Batavia, Calcutta.
 Dealing in foreign exchange is far different than going to a broker to purchase few shares of common stock. Banks frown on speculation in normal times and today the Federal Reserve Bank has restrictions on foreign ex- change transactions to prevent eepage of gold from the United States and to prevent any wida fluctuation.
 For instance, if man wanted to buy 500.000 francs - an order which to the layman seems fairly large, but to foreign experts is just nominal order = he must prove that the francs are neces. sary for the legitimate carrying out of business. He must prove that he wants the money for this, or for trip he is taking abroad, or for a debt contracted prior to the restrictions.
 There are no bins of money laying around to meet these de- mands. The money is delivered where needed by the banking in- stitution which makes the sale.
 And there is a constantly fluct- uating price. There are no tick. CTS operating over the nation. Banks must give the quotations, On the operating table in foreign exchange is q great drum which whirls. It Is based on the slide rule principle and just a couple of manipulations of the drum will bring out the price on foreign cur- rencies such as that opening quote of $3.90 3-4. for the pound sterling. In addition there is an electric computing machine which by another almost seeming feat of Legerdemain foreign exchange operator can push few buttons and arrive at the basic quote for Italian lira or whatever the de- mand is.
 And to buy foreign exchange is a 100 per cent cash proposition.
 Outside banks, outside foreign exchange brokers, deal with New York banks in furnishing curren- cies for the country at large to obtain foreign money to carry on their business transactions. Mil. lions are involved. One foreign exchange man was asked concern