The volume of transactions in French, German, and other continental exchange is quite small compared with that of sterling exchange. The reason for this is that most banks have accounts or balances only at London, and where balances are kept in other European cities they are usually small as compared with their London account. Therefore, in making remittances to Paris, Berlin, or other cities on the continent, it is most generally effected by transferring the funds to those cities from London, which can generally be handled very satisfactorily, by reason of most large European banks having branches in London. It is customary, however, for banks, before transferring funds from their London accounts, to carefully figure out the difference in cost between a remittance direct from here to the city where it is desired to place the funds and the expense of transferring it from London. This can easily be determined by ascertaining the rate of exchange between London and the point referred to.