THE FOREIGN EXCHANGES 233

a cheaper rate of transmission than 4 per mille may be
possible, causes gold to begin to move from London when
the rate is several points above the export gold point.
Similarly, the rate sometimes overshoots the limit named,
25°12, by two or three points. On the other side, gold
cannot be procured as freely as in London. The Bank of
France quite generally imposes obstacles in the way of
drawing out gold for export purposes. As it may redeem
its notes in five-franc pieces, which are of silver, it is able to
demand a premium if gold is insisted on. Thus gold does
not necessarily begin to move from Paris when the rate of
exchange reaches 2532. A premium of 3 per mille is
occasionally quoted, which would make the export rate run
up to 25394. Thus the gold points are by no means rigidly
fixed, but it is nevertheless true, that the existence of open
mints for gold in each of two countries, and fair facilities
for procuring gold, such as, at worst, gathering gold from a
circulation in which it is abundant, prevents the movements
of exchange ranging beyond quite narrow limits of variation.
Where seigniorage charges exist, the range of variation is,
pro tanto, extended. In the exchange between Berlin and
London, the par being 2043 marks per pound sterling, the
gold points are 20:33 and 20°53 respectively. In the
exchange with New York, the corresponding points are
approximately 4-89 and 483% dollars to the pound sterling
respectively for direct shipments,
Where the currencies of two countries are based on silver,
similar propositions as to the determination of a par, and of
specie points, hold as with gold currencies on both sides.
Where one currency is based on gold, the other on silver,
a fixed par is impossible unless the gold price of silver were
fixed. The range and limits of variation can only be
determined when the value of silver relative to gold is
known, and vary as that value changes. Should one or
both of the currencies be an inconvertible paper currency,
the position of gold or silver in the country concerned will
be that of a mere commodity, whose price is subject to such
wide variation that no points can be determined, which are
even relatively fixed, at which shipments of specie check