68

An intimate description of: Selling demand bills against
remittances of demand bills--Selling cables against remittances
of demand bills--Selling demand drafts against remittances of
"long" exchange--The operation of lending foreign money
here--The drawing of finance bills--Arbitraging in Foreign
Exchange--Dealing in exchange "futures."

CHAPTER VII. GOLD EXPORTS AND IMPORTS 106

The primary movement of gold from the mines to the markets, and
its subsequent distribution along the lines of favorable exchange
rates. Description (with presentation of actual figures) of: The
export of gold bars from New York to London--Import of gold bars
from London--Export of gold bars to Paris under the "triangular
operation." Shipments to Argentina.

London as a "free" gold market and the ability of the Central
Banks in Europe to control the movement of gold.

CHAPTER VIII. FOREIGN EXCHANGE IN ITS RELATION TO INTERNATIONAL
SECURITY TRADING 130

Europe's "fixed" and "floating" investment in American bonds
and stocks a constant source of international security trading.
Consequent foreign exchange business. Financing foreign
speculation in "Americans." Description of the various kinds of
bond and stock "arbitrage."

CHAPTER IX. THE FINANCING OF EXPORTS AND IMPORTS 141

A complete description of the international banking system by
which merchandise is imported into and exported from the United
States. An actual operation followed through its successive
steps.

PREFACE

"Where can I find a little book from which I can get a clear idea of
how foreign exchange works, without going too deeply into it?"--that
question, put to the author dozens of times and by many different kinds
of people, is responsible for the existence of this little work. There
_are_ one or two well-written textbooks on foreign exchange, but never
yet has the author come across a book which covered this subject in
such a way that the man who knew little or nothing about it could pick
up the book and within a few hours get a clear idea of how foreign
exchange works,--the causes which bear upon its movement, its influence
on the money and security markets, etc.

That is the object of this little book--to cover the ground of foreign
exchange, but in such a way as to make the subject interesting and its
treatment readable