Berlin exchange on London 20 m. 38 pf.; unchanged.

It should be observed that the quotation of sixty-day as compared with demand bills in francs is expressed by higher figures, but in sterling and marks by lower. This does not mean that sixty-day bills on Paris are worth more than demand bills on the same market, while in all the other cases they are worth less, but simply that the figures opposite the word "francs" mean francs per dollar, while all the others mean dollars or cents per pound sterling, per four marks, or per guilder. The simplification of the quotations by always stating the price of a unit of the foreign currency in American money would render them intelligible to the general public and more convenient for all.

C. The Parts and Berlin exchanges. - The only peculiarity of the Paris exchange worth mentioning in this connection is due to the nominal existence of the bimetallic system in France. According to French law the Bank of France has a right to meet its obligations either in gold coins or in silver five-franc pieces, the ratio between the two being 1 to 15 1/2. Therefore, when gold is needed for exportation, and notes are presented to the bank for redemption in that metal, it has the legal right to refuse the gold and to pay in silver, thus forcing the exporter to obtain his gold in some other way. On this account it is possible for the rate of exchange in Paris to attain a higher figure than the ordinary expenses of gold shipments would warrant. For example, the gold-exporting point to London is 25.32 francs, but the price of bills has risen as high as 25.45 francs. The explanation is that exporters, unable to get gold at the bank by presenting notes for redemption, are obliged to collect gold coin or purchase it from money-changers or pay the bank a premium for bullion or foreign coin. In either case the expense involved and the light weight of the coins obtained constitute an additional charge on gold shipments which makes it profitable to pay higher prices for London bills.

In Berlin ordinary influences are less obstructed in their action than in Paris, though gold flows to that centre more readily than away from it. While the Imperial Bank pays out gold freely upon the presentation of notes for redemption, it frequently exerts influence in various ways to prevent exportation, or at least to check a tendency to ship large quantities out of the country. It sometimes also facilitates importations of gold by paying higher prices than the other state banks.