Sterling has gone as low as $4.00
or less, while francs, lire and marks
have made record low quotations. The
effect has been to discourage banks
from extending accommodation which
involved their carrying any consider-
able quantities of bills stated in these
-. .iiviL.i, v ..lie li, cieuiie uiizie in
vestors have been Inclined to hesi
tate in advancing funds which would
be collateraled by securities or prop
erties stated in monies whose ex
change value was doubtful or fluctu
ating. In and of Itself, the quota
tion of exchange at these low figures
tends to add to the high cost of
American goods, since the practice is
becoming more and more general of
requiring a -foreigner to pay in dollars
or their equivalent at a fixed rate.
The prospects of an unfavorable
situation in foreign exchange thus
greatly increased the unsatisfactorl
ness of the trade outlook.
At the same time they suggest the
necessity of very great caution in pur
chasing foreign currencies as an in
vestment or speculative operation.
Those who have been carrying large
lines of sterling, lire and other cur
rencies against the advice of experts
may have to wait a long time before
recovering the value of their invest
ment. Uncertain Outlook.
The uncertainty of the outlook in
tenationally is paralleled by consid
erable industrial uncertainty growing
out of the coal strike and the increas
ing acuteness of coal shortage in
many productive districts. While
there has been some decrease in the
surface manifestations of labor un
rest no material change in the under
lying conditions can be said to have
taken place.
