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The Theory of the Foreign Exchanges

The Theory of the Foreign Exchanges


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This historic book may have numerous typos, missing text or index. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. 1861. Not illustrated. Excerpt: ... CHAPTER IV. r ENUMERATION OF THE VARIOUS ELEMENTS OF VALUE WHICH DETERMINE THE FLUCTUATIONS IN THE PRICES OF FOREIGN BILLS. In the preceding chapters we have been engaged in considering the indebtedness which constitutes the subject-matter, and the bills of exchange which are the instruments, of international adjustments between country and country, of reciprocal payments between importers and exporters, creditors and debtors. We proceed to the more complicated question of the differences in the value of such bills of exchange, of the causes which determine and limit the extent of these differences, of the phenomena of which they are the index, and the measures by which they may be rectified. The primary difference of value clearly arises, as was previously pointed out, either from the aggregate amount of the claims of any given country upon others exceeding the sum of her liabilities to them, or, vice versd, falling short of that sum. In the first case, those who have bills to draw (whom for the sake of conciseness we will call the exporters, though the class embraces all those who have claims of any kind on foreign countries) will not find sufficient purchasers to take all their bills; for only those will buy who have debts abroad to settle, and these debts are by our hypothesis of less amount than the claims. Accordingly the exporters, competing with each other for the sale of the bills, will take less money for them than their nominal par value; that is to say, will sell them at a discount. In the second case, the importing class, those who have incurred liabilities to foreigners, having by our hypothesis larger remittances to make than the exporters can supply them with, bid against each other for such bills as may be got, and pay a premium to secure them. ...


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Product Details
  • ISBN-13: 9780217700436
  • Publisher: General Books
  • Publisher Imprint: General Books
  • Height: 246 mm
  • No of Pages: 30
  • Spine Width: 2 mm
  • Width: 189 mm
  • ISBN-10: 0217700438
  • Publisher Date: 01 Jan 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 73 gr


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