and 1920 was in the form of the melted silver currencies of
France, Belgium, Germany and Austria, which were withdrawn
from circulation and melted into bars. So much of this silver
came into that market during this period that, notwithstanding
the fact that the U.S. Treasury made an agreement with the
American producers to purchase an amount of silver sufficient to
replace what they had sold to the Indian Government at the
fixed rate of a dollar an ounce, it was obtainable in large quanti-
ties at prices considerably below what it was costing to produce
it in many of the most important mines. And yet the French,
Belgian, German and Austrian Governments were making sub-
stantial profits in terms of their own depreciated currencies.
South African Exchange. Up to the time of the outbreak of war, there was almost a stereotyped London rate of exchange on S. Africa, never varying beyond the cost of sending gold either way usually, buying o- 5 % discount, selling o 5 % premium. Ow- ing to the difficulty in getting the natives to take and circulate notes, gold was the S. African currency in common use. In normal times there is a considerable leakage of gold from S. Africa. This rose to considerable proportions after the war had com- menced owing to the heavy premium on gold in other countries. Even after a law had been passed prohibiting the export of gold, a considerable amount of smuggling took place and continually reduced the amount of sovereigns held by the S. African banks. In order to replenish their stocks, the banks had to import sovereigns from England, resulting in the strange spectacle of the
largest gold-producing country of the world importing gold. This was due to the fact that all the fresh gold produced by the mines was requisitioned by the British Government.
Owing to the shortage of sovereigns, and the shipping of gold being a considerable expense to the banks, exchange facilities to exporters from England were somewhat restricted, and in May 1920 a premium of 8% was charged for remittances to S. Africa. The scheme by which a Federal Reserve bank for S. Africa was authorized to issue inconvertible notes to take the place of the gold currency, caused the exchange to drop to par in Aug. 1920, and the swing of the pendulum, encouraged by a considerable increase in the import of goods, created a shortage of funds in London and sent the exchange in the other direction until 6 % was charged for remittances on London in S. Africa in Nov.
1920. Hence the strange phenomenon of the currency of the greatest gold-producer in the world being at a discount as compared with the British Treasury note.
Rates of Exchange. Table F gives the chief rates of exchange ruling in London on three typical days: the end of- July 1914; the day on which the Armistice was declared (Nov. n 1918); and the last working day of the year 1920. There are also given the pre-war parity rates; the highest and lowest rates touched during the war, and also the highest and lowest rates touched between Armistice day and Dec. 31 1920; and that of Aug. 10
1921. The Austrian and German rates of exchange current during the war are those obtained from neutral countries.
TABLE F. Comparative Rates on London.
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Place
Method of Quoting
Pre-War Parity
Rate of Exchange July 30 1914
Highest Rate during War
Lowest Rate during War
Highest Rate between Armistice and 12-31-20
Lowest Rate between Armistice and 12-31-20
Rate of
Exchange Nov. ii 1918
Rate of Exchange Dec 31 1920
Rate of Exchange Aug. 10 1921
New York
Dollars to .
$4.8744
4 . 90500 (cable)
6 50
4-49
4 -76S
3 2lJ
4.76! 4-76}
3-53i 3-55
3.64 3.67
Montreal
Dollars to .
$4.8744
4.95 (cable)
5 "
4-49
4-861
3^65
4.86 4.86J
4.09 4.12
4.05 4.08
Paris
Francs to .
Frs.25. 207
24-75 25.15
29.02
24.80
68.80
25.80
25.80 25.86
59-50 59.90
46.65 46.87
Brussels.
Francs to .
Frs.25. 207
25.00 25.25
38.50
25.323
63-65
25. gs
56.70 57-00
48.10 48.30
Italy .
Lire to . .
Lire 25.207
25.60 27.oo(29th)
45.6s
25.00
106.00
30.25
30.25 30.37}
IOI IO2
83 84
Switzerland
Francs to .
Frs.25. 207
25.124 25.25
26.50
18.50
25.20
18.95
23.08 24.05
23.14 23.18
21.67 21.75
Athens .
Drachmas to
Drs.25. 207
25.12} 2S-i8i
49-50
22.50
48 48*
66 67
Russia .
Rubles to 10
Rbls.g4.6o
102 103 nom.
t43o.oo
95.00
Helsingfors
I-mks. to
Fmks. 25.207
25.3725.42(27111)
44.60
25.802
180.00
41 75
11$ 118
35 245
Madrid .
Pesetas to .
PtS.25.2O7
25.92 26.o2(2gth)
26.90
IS 95
28.00
18.60
24.00 24.15
26.43 26.53
28.15 28.31
Lisbon .
Pence to escudos
53! per esc.
45jd 461d(29th)
42jd.
2 7 ;d.
36d.
Sid.
3old. 3i|d.
6d. 7d.
6}d. 7d.
Amsterdam
Florins to .
Fls.i2.o867
12.15 12. i6(2gth)
12.45
9.01
11.88
8.65
11.45 11.48
11.25 11.27
11.77 11.82
Berlin .
Marks to .
Mks.20.4i8
20.55 20.70(291)1)
32
20.60
365.00
67.50
257 259
293 297
Vienna .
Kronen to .
Krs.24.o2
24. 40 24. 70(29 th)
53
24.80
1600
160
1500 I55O
3150 3350
Prague .
Kronen to .
Krs.24.oa
.
450
80
305 310
282 200
Warsaw.
Marks to .
Mks.2o.4i8
.
.
2300
67
2200 23OO
7200 74OO
Bucharest
Lei to . .
Lei 25. 207
325
50
_
282 285
280 285
Belgrade
Dinar to .
D. 25.207
.
145
58
125 130
145 155
Chris tiania
Kronor to .
Krs.i8.i3t
18.26 l8.36(2gth)
19-75
II. OO
26.78
16.75
17-5.5 17-58
22.95 23.15
28.50 28.70
Stockholm
Kronor to .
Krs.i8.i3t
18.26 18.36(29111)
19.75
9.90
18.51
17.10 17.20
17.66 17.72
17.45 17-55
Copenhagen
Kronor to .
Krs.i8.i3t
18.2818.38(29^)
19-75
11.90
25.91
17-48
1 7 . 80 1 7 . 90
23.05 23.20
23-30 23.50
Alexandria
Piastres to .
97}
97J 97l (29th)
981
96
97i
g? 1
97i g?t
97l 97\
97B
Bombay Yokohama
Sterl. to rupee Sterl. to yen.
l6d. 2 4 Ad.
is.3(d. is.4d. 2s.oid. 2s.ojd-
2S.4(1.
IS.3W.
2S.lAd.
2S.g)d.
3s.o|d.
IS. 4 d. 2S.ld.
is.6d. is.6Ad. 2s.3Jd. 2s.3jd.
is.SJd- is.sJd. 29.8d. 2S.8Jd.
is-3|d. is.3fid. 2s.7id. 2s.7fd.
Shanghai Singapore
Sterl. to tael. Sterl. to dollars
38d.
2s.3Jd. 25. 4 id. 2s.3Hd. 2s.4Ad.
5s.6d.
2S.lid. 25-3d.
gs.6d.
2S. 4 !d.
3S.iold. 2S.3jd.
Ss.od. 5s. id. 2s.3fjd. 2s.4Ad.
43. id. 4S.2jd. 2s.3ftd. 2s.33id.
3S.6Jd. 3S.7Jd.
Rio de Janeiro
(god.)
Pence to milreis
2 7 d.
isHd. (2gth)
isid.
10 iV
ISA
g!,
I3ri
gH(3oth)
8
Buenoj Aires
Pence to dollar.
47id.
4 8i(Aug. 4)
55
4i
73J
sort ' siH
SI SiJ
44i 44i
Valparaiso (god.)
Pence to gold
peso
i8d.
9l(29th)
17!
7
isH
8!|
12}
9ft
Montevideo .
Pence to dollar
5.d.
66
73
S8 59)
49* So!
43J 44
Shanghai exchange being on a silver basis there was at no time a fixed parity between its currency and that of London. fTo Jan. 7 1918-
TABLE G. Value of pound sterling, Dec. 31 1920.
Compared
Purchasing
Compared
Purchasing
Dec. 31 1920 Middle rate.
with pre-war par value, sterling
power of i as com- pared with
Dec. 31 1920 Middle rate.
with pre-war par value sterling
power of i as compared with pre-
premium.
pre-war value.
discount of.
war value.
France ....
59-70
I36J %
2 7 4
New York
3'54i
27i %
o 14 6
Belgium.
56-85
125* %
2 5 i
Montreal
4-ioj
I5l %
o 16 10
Italy ....
loij
3025 %
406
Holland.
11-26
6| %
o 18 8
Norway
23-05
27 %
i 5 5
Sweden ....
17-60
-,i o/
2 2 /o
o 19 6
Denmark
23-I2J
271 %
i 5 6
Switzerland .
23 16
8 %
o 18 5
Finland .... Germany
116-50 258-00
362 % 1,163* %
4 12 5
12 12 8
Argentina Japan ....
snW.
2/8J
61 %
23* %
o 18 8 o 15 4
Greece ....
48-12*
91 %
i 18 2
India ....
l/Stt
9l %
o 18 2
Austria ....
1,525-00
6,249 %
63 99
Shanghai
4/i rV
43i %
o ii 3
Rumania
283-50
I.024J %
ii 411
Portugal
6id.
720 %
8 4 o
Spain ....
26-48
5 %
i i o
Brazil ....
9tfd.
63 %
i 12 8
Warsaw
2,250-00
10,920 %
110 4 o
Prague ....
307$
1,180 %
12 16 o
