The par rate between Amsterdam and London is Fl. 12.107 to the pound sterling, and the rate obtain Mg just before the war was a little in favor of Lon don, Fl. 12.14. During the first week of August, the quotations were most irregular, ranging as they did from Fl. 11.90 to Fl. 12.60, but after the steadying of the exchanges by the remedial measures above re ferred to, the rate on London was fairly well main tained around normal, until 1915, when payments for freight and large purchases by the British government of sugar and other supplies, together with the sale of securities in New York and London, presumably for German account, combined to lower the rate of the pound to Fl. 10.85, the quotation on the 15th of Janu ary, 1916. On the 4th of January, 1917, the rate stood at Fl. 11.69.
9. Exchange in other the begin ning of the war, the Italian exchange has been favor able to London and during the summer and fall of 1915 stood at about lire 26. The rate rose a little in December but dropped again on the prospect of Italy's participation in the war and stood at about lire 28 until June, 1915, from which time it has been gradually rising, and on the 15th of January, 1916, reached lire 32.35. On the 4th of January, 1917, the rate was lire 32.78.
The Russian rate of exchange before the war stood at about 94 roubles per £10. Since then the rate has gone steadily against Russia, reaching as low as 163 roubles per £10. This is due to the almost complete blockade of Russian exports, both from the Black Sea and the Baltic, and to a large increase in the value of imports, tho a certain amount of this depreciation is due to the expansion of the paper currency. The rate on the 4th of January, 1917, was 163 roubles per X10.
Spain was favorably affected by the war as far as exchange conditions were concerned. Sterling ex change is almost invariably at a premium in Spain. Just before the war it stood at 26.10 pesetas per pound sterling (par 25.22) and during the first part of Aug ust fluctuated between pesetas 23.85 and pesetas 26.60 per pound, the higher quotation being of course in favor of Great Britain. Heavy purchases by France and England of war munitions and provisions turned the exchange in favor of Spain, where it has remained ever since, and England has even found it necessary to ship gold to Spain from time to time in order to keep the rate adjusted. The rate on the 4th of Janu ary, 1917, was 22.30 pesetas per X.
The position of the Scandinavian nations—Norway, Denmark and Sweden—was very similar to that of Holland, being adjacent to both Great Britain and Germany. Under normal conditions the Scandina vian nations are generally indebted to Great Britain and at times lean heavily on London for financial as sistance. At the beginning of the war exchange was in favor of London, standing at K. 18.25 as against the par of K. 18.16, and remained favorable well into 1915, when it fell as low as K. 16.60. The fall was due to a number of causes. England's exports to these countries had practically ceased while her im ports from them had increased. Russian purchases in these countries were paid by draft on London and large amounts were also due from Great Britain for freight and the like.
10. New to abnormal conditions in duced by the war New York has gradually been forced to assume the position in international finance and ex change heretofore almost exclusively occupied by Lon don, and a wide demand for dollar exchange and dol lar credits has developed. The relations between London and New York have been dealt with in a pre ceding section and it is necessary only to dwell briefly on some of the other exchanges. On the chart op posite page 259 will be found the New York rate of exchange with the different countries since 1914 and these should be compared with the more recent rates given below.
The closing prices on the 13th of January, 1917, for the principal exchanges quoted on the New York market were as follows: It will be noted that exchange with all belligerent nations is at a discount, and at a premium with all neutral nations with the exception of Brazil or, con versely, the dollar is at a premium in all belligerent countries and at a discount in all neutral countries.
The exchange between New York and Paris calls for very little comment. At the beginning of the war New York was largely indebted to Paris for stock purchases and, as with London, cable remittances be tween New York and Paris rose to unprecedented heights, resulting in the complete breakdown of the ex changes. As will be seen by the chart, French ex change has acted thruout in sympathy with ster ling, maintaining a slightly higher level until Febru ary after which, tho still following the line of the ster ling curve, it reached much lower levels of deprecia tion, touching fourteen per cent discount in August, 1915, or more than double that of sterling.