A Day In An
A Day In An Exchange Box 1. Practical Exchange.—a Very Practical Way To Obtain An Insight Into Foreign Exchange Is To Study Actual Counter Operations. We Have Already Seen How The Rates Are Obtained From New York. Therefore, In Our Operations, We Shall Use The Quotations Given And Consider Them ...
Arbitrage 1
Arbitrage 1. What Is Arbitrage?—arbitrage, Or As It Is Some Times Called, Indirect Exchange, Is A Term Applied To Any Transaction Which Takes Advantage Of Differences Of Prices For The Same Article In Different Markets. Arbitrage Is Thus Defined In The Century Dictionary: "the Calculation Of The Relative Value, At ...
Bills Of Exchange 1
Bills Of Exchange 1. Bills Of Exchange.—it Has Already Been Indicated That The Fundamental Purpose Of A Draft Or Bill Of Ex Change Is To Settle Debts And Thus Avoid The Necessity Of Shipping Gold. To Satisfy A Debt In One Country By Offsetting The Amount Against A Debt Due ...
Domestic Exchange 1
Domestic Exchange 1. Definition Of Domestic And Foreign Exchange.- Domestic Exchange Is Simply The Term Applied To The Various Methods Of Making Payments Between Busi Ness Men In Different Communities Located Within The Same Country. Foreign Exchange Refers To All Pay Ments Made By The Business Men Of One Country ...
Exchange With Other Countries
Exchange With Other Countries 1. Gold Basis Of Excliange.—the Facility With Which Exchanges Are Effected Is Due To The Fact That, With Few Exceptions, The Monetary Systems Of The World Are On A Gold Basis, Or At Least A Gold Exchange Basis. Where The Contrary Is The Case The Exchange ...
Federal Reserve Bank Clearings
Federal Reserve Bank Clearings 1. Collection Of Country Checks.—the Methods By Which Banks In The United States Collect Out-of-town Checks, That Is, Checks On Banks In Dif Ferent Communities, Have Been Mentioned In The Pre Ceding Chapter. Few People Realize The Deplorable Waste In Time, Money And Labor Which Exists ...
Finance Bills 1
Finance Bills 1. Definition Of A Finance Long Bill Of Ex Change Drawn By A Banker Or Financial House In One Country On A Banker In Another Against Securities In The Hands Of The Latter Is Generally Called A "finance Bill." The Privilege Of Drawing Such Bills Enables Bankers To ...
Foreign Exchange And Exports
Foreign Exchange And Exports 1. Interdependence Of Exports And Imports.—if Merchandise Were The Only Basis Of International In Debtedness The Value Of The Exports Would Have To Be Equal To That Of The Imports Or Else Trade Would Prac Tically Cease. Suppose A Country Which Does Not It Self Produce ...
Foreign Exchange And Imports
Foreign Exchange And Imports 1. Commercial Letters Of Credit And Importing.—al Tho Merchants Importing Goods Into A Country Can Set Tle For Them Direct Either By Remitting Or By Accepting A Draft Drawn By The Foreign Merchant, These Methods Are Now Seldom Followed Except In The Case Of Minor Transactions. ...
Foreign Remittances 1
Foreign Remittances 1. Non - Commercial Exchange.—altho The Greater Portion Of Foreign Exchange Originates In Commercial Transactions, There Is A Constantly Increasing Volume Of Exchange Business Created By Travelers And Im Migration. A Steady Stream Of Travelers And Others Leave The United States And Canada Each Year To Visit Great ...
French Exchange 1
French Exchange 1. Paris Market.—in France, The Financial Center Is Paris And All Exchange Is Quoted In Paris. As A. Trading Center Paris Is Not So Important In Compari Son With Other French Towns As London Is Compared With English Cities. But As An Investment Center Paris Far Outstrips The ...
General Aspects Of Foreign
General Aspects Of Foreign Exchange 1. Definition Of Foreign Exchange.—foreign Ex Change May Be Defined As The System By Which Two Or More Countries Discharge Their Debts And Adjust Their Financial And Commercial Transactions With Each Other. Payment Is Effected By Inter-cancelation Of Indebt Edness By Means Of Bills Of ...
German Exchange 1
German Exchange 1. The Berlin Market.—in Recent Years, The Ex Change Market In Berlin Has Become Of The First Im Portance. This Is Due To The Remarkable Expansion Of German Foreign Trade, And The Considerable Devel Opment Of German Branch Banking Thruout The World. The Former Glory Of Frankfurt As ...
Gold Shipments 1
Gold Shipments 1. Gold Or Specie Points.—the Use Of Bills Of Ex Change As Shown In Chapters Iv And Vi Eliminates, In A Great Measure, The Expense And Trouble Of Shipping Gold In Payment Of International Indebtedness. The Necessity Of Importing Gold Arises Only When The Seller Of A Bill ...
London And New York
London And New York As Financial Centers I 1. New York As A Financial Center.—since The Be Ginning Of The Present European War There Has Been A Great Deal Of Discussion In The Financial Papers And Elsewhere As To The Effect Of The War On London's Po Sition As The ...
Rates Of Exchange 1
Rates Of Exchange 1. Bills Of Exchange And Their Relation To Gold.— The Strength And Usefulness Of Credit Rest Entirely On The Fact That The Holder Of A Bill Of Exchange Or Other Evidence Of Indebtedness Has Every Confidence That The Instrument Will Be Absolutely And Unquestionably Redeemed In Gold ...
Rates Of Interest 1
Rates Of Interest 1. Interest An Important Factor In Exchange Quota Tions.—the Rate Of Interest At Which The Difference Be Tween Long And Short Bills Is Calculated Is Based On The Prevailing Rate Of The Country On Which The Bill Is Drawn. This Would Not Materially Affect The Situation If ...
Sterling Exchange 1
Sterling Exchange 1. London Will Give A Much Clearer Understanding Of The Operations Of Foreign Exchange To Study In Some Detail The Principal Exchange Mar Kets, To Learn The Exchange Practice In Each Market, 'and, Having Reviewed The Principal Financial Centers, To Explain How Exchange Is Effected With Other Parts ...
War And The Exchanges
War And The Exchanges 1. War And Its Effect On International Exchange.— Exchange Operations In The Preceding Pages Have Been Considered Almost Entirely From The Viewpoint Of Normal Conditions, As It Is Safe To Assume That, With The Return Of Peace, International Exchange Will Re Sume Its Ordinary Channels. A ...