In the foregoing only the three principal, commercial countries have been considered on account of the limited space, but the principles as applied are the same in other countries, barring, of course, local usances. The following calculations based on actual transactions will demonstrate many of the principles laid down in the foregoing pages: A batch of 90 d/s bills on London, amounting to £65,000, was bought in the New York market for remittance to London where the money was immediately needed. The natural course would be to secure the discount by cable for bills to arrive - i. e., to go forward by first steamer. The rate received was 3 1/2%, showing the following result;

Illustration

Days of Grace

By remitting Berlin exchange to London a saving of $110.69 =1/2 % (per mille) was effected.

London is the only European open market for gold, hence the fluctuation of exchange on London in New York is limited to the actual cost of shipment of bullion and the expense for interest while in transit, approximating 3/8 of 1 per cent. above or below the mint parity - whereas in the case of Berlin or Paris exchange the fluctuations have a wider scope, dependent upon the premium charged or allowed for gold, and have been known to approach a variation of pretty nearly one per cent above or below the mint parity.

Fluctuations in Exchange