Whenever the prices of foreign " exchange " reaches the point where it is cheaper to buy gold bullion, and ship same, to adjust a debt due than to buy " exchange," the " gold export point " is reached. Consideration is taken of cost of bullion, expressage, insurance, loss of interest during transit, etc. When rates are rising toward the export point they are referred to as " unfavourable."

The London Economist had for years been quoting the

1 The author is indebted to Mr. Charles A. Conant, the able author of many financial publications, for furnishing this definition of " Gold Exchange Standard."

"gold export point " at $4.89, and the "gold import point " at $4,827, but previous to the great World war, the reduced cost of freight and insurance, together with the shorter time consumed in transmission, had tended to bring the two points nearer together, and so, generally speaking, the "gold export point" was considered to be $4,884 and the "gold import point," figuring interest at 6%, as $4,833.