THE FOREIGN EXCHANGES

Dominion, Volume 13, Issue 10, 7 October 1919, Page 7

THE FOREIGN EXCHANGES

CURRENT 'RATES. ■ (Rec. October 6, 10.40 p.m.) < London, October 4... Th? foreign rates of exchange to-day are. as follow On Paris; francs to £1, 35.47. ' ' Stockholm, kroner to £1. 17.16.. .Christiania, kroner to <61. 18.13. . Calcutta, pound sterling,to rupee,'2soJ. , Montreal, dollars to £1, 4dol. 38 cents. New York, dollars lo .CI, 4dol. 24 cents. —Aus.-N.Z, Cable Assn.

The depreciation of the European note currencies becomes more pronounced every day (states a. Sydney commentator). The English pound i 9 now oniiy worth the equivalent of about seventeen shillings in American currency, while as compared with English paper the French franc has dropped from 9| pence to under 6i pence, and the Ge-rmau mark from 11} pence to 2 pence. Everywhere amongst belligerent nations there is the same story, and in effect it represents tho period which, it is considered, must tfapse before such paper can be converted into cash of standard valuo. New York apparently regards English pound notes as convertible three years hence—that is, at 5 per cent, m-! teres*. England regards tlie French franc as repayable in eight" years, and as for tho mark its repayihent is looked upon as 32 years distant. It is one way in which international finance operates to' check further running into debt. France cannot buy from England if she has to pnv nearly twenty-seven shillings for a ]>oti'nd's worth of goods; still 'Cess from America if she has to pay thirty-four shillings for them, but there is every inducement for her to sell, hot products there, upon which she will realise an eauivnjent premium. It looks ns though, after the first 'passing, needs of Europo are covered, the American export trade will be greatly cpt down, and that nricos there must collapse.- The.United Stateß lias become too dear a market for Europe, much a? Eurono may desire American goods. Europejias spent vary much more liiion the war than she con afford, and this depreciation also reoresents an automatic writin.e-dowii of her indebtedness. Tli'« is certain: It: isbfyond the-power of Europo to avoid the depreciation which witl remain in sojne countries for very ..mniiy years to colli", though it may be lessened by converting the existing ,huge debit balances «?irinst Europo into more permanent securities.