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Show Ban on Luxuries and Terms of Indemnity Lead to Improvement Im-provement PARIS, May 19. Another marked decline In foreign currency occurred in tho Paris market this morning. Tho pound sterling opened at 4 8 francs anu the American dollar at 12 francs 50 centimes. Yesterday's closing quotations wcro 53 franca for tho pound and" 13 francs 74 centimes foi' the dollar. A high official of the Bank of France expressed the view today that tho sharp declino of tho exchange rates meant tho beginning of a return to tho old equilibrium, ruled by the 1 law of supply and demand. He considered con-sidered that tile French government decree prohibiting tho importation of luxuries from England and tho fnltcd States was tho starting point, and" that other reasons were the result of tho I-Iythe conference, where the settlement settle-ment of hc German indemnity began to tako definlto shape, tho . French business world becoming for the first ' time confident that Germany would pay something of her debt. In general, the official gave as his view that the production of the worm was relatively in a better position toward to-ward consumption than it had been since 1914. He noted that there had been a general tendency toward lower prices In cotton and wool, and that silk prices were declining, and ho thought that similar improvement! might be' expected witlfln a year in iron, steel and coal. . I Tho exchange market opened toda with a rush, speculators who had boon playing for the rise of the dollar and the pound unloading, while others were busily engaged In trying to stem the tide of the decline. - Tho opening transaction in sterling was 5,000 .pounds at 4S francs. Later transactions transac-tions averaged 50 francs. American, dollars were not quite so active. I The dollar closed at 13 francs 4lj centimes and tho pound sterling at 51 1 I frans 40 centimes, after the heaviest I day's transaction in foreign exchange j since the armistice. I NEW YORK, May 19. Exchange I on Germany was very active and ! strong today, bills on Berlin rising to 2.19 cents to the mark, the highest! quotation since their decline 10 one I cent in February last. I Dealers in exchange, ascribed the I strength of these remittances to the! fact that the terms of Germany's wr indemnity finally have been fixed. As a result it is believed the bankers and Industrial interests of Germany will now bo ablo to formulate a definite program of reconstruction, involving hoavy purchases of raw material rrom their former enemies. on-- |