OCR Text |
Show ENGLISH MONEY REGAINS LOSS Drops Heavily and Then Recovers Re-covers at Close of the Day. New "Sork, Sept. 1. English money, already depreciated to figures without with-out parallel in the history of finance, took anothor phenomenal, drop today. The pound sterling sold down within the first hour of dealings to $4.50, a break of 5 14 cents overnight and a downward plunge of 11 cents within with-in two days. The drop caused the gravest anxiety anxi-ety as to its possible effect on American Amer-ican exports now at top figures. Continued Con-tinued and unchecked depreciation, it was thought, would affect tens of thousands oQ American workmen, possible pos-sible by ultimately closing down of factories supplying Great Britain with commodities. Before that could happen, It was ex-plainea, ex-plainea, there would have to be cancellation can-cellation or curtailment of foreign orders or-ders to American producers, at present pres-ent totalling hundreds of millions of dollars, and great diminution in the value of new orders. Both the latter contingencies were expected, It was said, In case sterling should go much lower. The Immediate effect of the great drop since yesterday's close was the virtual paralysis of the foreign exchange ex-change markets. Fear, amounting almost to conviction, convic-tion, that sterling would go much lower low-er yet, checked trade and held the big "factors In New York's International Internation-al money markets apprehensive and awaiting the day's development. There seemed little doubt that buyers buy-ers in Great Britain would soon refuse re-fuse to bear the heavy burden of exchange ex-change It was said, however, that there had been no cancellatio'ns yet of war orders, or-ders, although foreign buyers were re-norted re-norted to be holding off on placlng-or-ders here foV anything except necessities. neces-sities. These were mostly for munitions mu-nitions of war which Great Britain cannot afford to do without no matter mat-ter what the exchange rate may be There seemed every indication that the startling decline In values was but the forerunnpr to declines more startling still With sterling down oday to S4.50 without these two factors fac-tors reckoned, tlire seemed no telling tell-ing how low the -English pound ttould fall when the full weight of cotton and wheat bills should vent its force on the exchange Great Britain, according to international interna-tional bankers here has made no fur ther move to correct the situation. At uresent her buvers are bearing the burden, a premium of more than 7 per cent on their money Wliile sterling suffered most todaj other foreign moneys remained practically prac-tically stationary After the first ild (Iron In values, sterling steadied a bit and went up to $4 52. At that figure the market continued in a state of demoralization. A sharp and unexpected rally occurred oc-curred during the afternoon session and sent prices kiting upwards as quickly as they had tumbled. Sterling Ster-ling rose to $4 55. Offerings were scarce, however. Many factors entered en-tered the situation, chief of which were the belief that England was on the eve of taking corrective steps and a general inclination of the part of American shippers to accept smaller cash payments and extend wider margins mar-gins of credits -for their commodities nn |