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Show oo EXCHANGE RATES TAKE NEW DROP Pounds Sterling Touch Bottorn Quotation Francs Make I New Low Record. ITALIAN LIRES WEAK Markets in State of Demoralization Demorali-zation More Gold Arrives Ar-rives From Great Britain. New York, N. Y, Aug. 17. The slight improvement in foreign exchange ex-change rates gained In yesterday's rally was wiped out at the opening of the exchange market early today. Pounds sterling again touched the bottom quotation of 4.66; francs made a new low record, 6.04; two cents un-dof un-dof yesterday's lowest quotation and Italian llres were acutely weak, falling fall-ing to 6 54, seven cents under the closing figure of yesterday and bIx ents below the previous low record As on yesterday the exchange markets mar-kets were In a condition of demoralization. demorali-zation. Quotations, issued simultaneously simulta-neously by leading banking houses, showed variations of a cent to a cent and a half on sterling with corresponding corre-sponding discrepancies In francs and lires. Nearly five million dollars In foreign for-eign gold coin reached Wall street during tne torenoon irom uuawn. iui the account of Great Britain. This, It was reported, practically exhausted the Bank of England special deposits of about $120,000,000. nearly all of which bad already been shipped to the United States At the office of J. P. Morgan and company, to whom the gold was consigned, It was said that no further consignments of gold from Ottawa were expected In the near future. The arrival of this gold, however, failed to deflect tho rate upward. American Dollar Monarch. With the American dollar enthroned enthron-ed as monarch of the exchange markets, mar-kets, bankers here looked to England to protect her credit by the establishment establish-ment of a huge war loan In this city. Overnight cable reports from London tolling that English bankers were talking of tho establishment of such a loan were discussed with interest as indicating that realization had at last come to London that pounds sterling were no longer the world standard of finance. England to lesue Bonds. There seemed to bo little doubt that should England seek to Issue a loan of approximately ?500,000,000 In two-year two-year five per cent bonds, free from income tax, outlined In cable dispatches dispatch-es as a suggestion for remedying the present situation, such a loan would be cared for here and the foreign exchange ex-change markets would be restored to some degree of equilibrium. Tho disruption of the exchange markets mar-kets was reflected In today's actlvo . stock market, where foreign selling of American bonds was resumed. nn |