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Foreign Exchange Explained: A Practical Treatment of the Subject for the Banker, the Business Man, and the Student (Classic Reprint)
Foreign Exchange Explained A Practical Treatment of the Subject for the Banker the Business Man and the Student - Classic Reprint Author:Franklin Escher FOREIGN EXCHANGE EXPLAINED CHAPTER I introductory Foreign exchange may perhaps best be defined as the business of buying and selling orders for the payment of foreign money at a foreign point. Between any two countries the rate of exchange is the price of the money of the one expressed in the money of the other. To an American the term " money "... more » means dollars and cents; to an Englishman pounds, shillings, and pence; to a Frenchman francs and centimes. Each thinks in the currency of his own country, and, naturally enough, demands that anything owing to him be paid for in that currency. The American who buys something in England knows he has got to pay for it in pounds sterling; but if, on the other hand, he sells something in England, he expects to get his pay for it in dollars. Different nations with different kinds of money all the while trading with one another and each demanding that payments to it be made in its own money - that, in a word, is responsible for what is known a
Table of Contents
CONTENTS; CHAPTER I; Introductory; Foreign Exchange, what it is- - How payments between countries are made - Function of the foreign exchange banker - The rate of exchange between two points determined by conditions at both points - The "see-saw" principle in exchange; CHAPTER II; Pars o* Exchange; What the par of exchange between any two countries is and how it can be found - Weight and fineness of coins - Influence of the mint par on the rate of exchange; CHAPTER III; International Banking; Sterling the one international currency - Balances carried by foreign banks in London - The London discount market -The new discount market at New York- Financial confidence a plant of slow growth -The volume of business in sterling as compared with other currencies; CHAPTER IV; Sources of Supply and Demand ; Supply, I Merchandise exports - Supply, II Exports of securities - Supply, III Foreign loans to this market - Supply, IV« less