Hence gold (in bars) is negotiated at a premium or discount on Fr. 3437 per kilog. fine (new tariff).

Silver (in bars) is negotiated at a premium or discount on Fr. 218.89 per kilog. fine (old tariff).

To find tariff rate for any other fineness.

Multiply (for gold) Fr. 3437 by fineness and mark off 3 places.

Multiply (for silver) Fr. 218-89 by fineness and mark off 3 more places.

Example 1. Standard gold 916.

·916×3437=3150·58 Fr.

Example 2. Standard silver 925. 925 x 218.89=202-47 Fr.

N.B. The rate for gold (old tariff) is Fr. 3434-44, and the rate for silver (new tariff) is Fr. 220-55, but these are not used practically.

At present gold is about at par, but silver is at a large discount.

The above charges include the rétenue or charge for importation at the mints.

The Bank of France receives gold in bars of about 200 oz. and not under 994 fine at 3437 Fr. per kilog. fine, and it pays cash with or without a discount of 12 days' interest at 3 p.c. p.a. according to the scale of importation (1 per mille).

Bars of gold under 994 fine are only taken by the Mint at 3437 Fr. per kilog. fine, and are paid for by a bon de monnaie of about 40 days-discountable as papier haute banque (fine paper).

Foreign gold coins are quoted per piece usually, but the Mint and the Bank of France buy them by weight at 3437 Fr. per kilog. fine, reckoning sovereigns at 916 fine, imperials at 916, American eagles at 900, German 20-marks at 8992, Austrian 8-florins as Napoleons, and paying cash with or without a discount of 12 days' interest at 3 p.c. (1 per mille).

SALE OF BULLION.

291

The Bank of France sells these coins at the above rates plus a premium based on the stock and demand (now 4-5 per mille).

The charge for assaying is Fr. 390 per bar: for refining Fr. 5 per kilog.

At former gold would be shipped from London to Paris.

At latter gold would be shipped from Paris to London were it not that the banks in France can pay in silver coins to some extent and also take measures to prevent the export of gold by placing a premium upon it.

London-Paris. Arbitrated Pars and Prices. 1. Bar gold. Chain for par of exchange.

Rule. F. N. × (1000+prem. p.m.)=rate of exchange × London price in s.

Given any two the third may be found from this equation.

2. Gold coins. Chain for par of exchange.

Fixed numbers are easily found for various coins.

Rule. F. N. x price in Paris = rate of exchange × London price.

3. Bar silver. Chain for par of exchange.

Rule. F. N. × (100 – disct. p.c.)= rate of exchange × London price.

Fixed numbers are easily found for various coins.

Rule. F. N. x price in Paris = rate of exchange × London price.

EXAMPLES.

1. Bar gold. London, 778. 10d. per oz. st. Paris, 2 p.m. premium. Rate? Ans. =25.217.

2. Gold coins. London, Doubloons, 778. 6d. Paris, 83·50 Fr. Rate? Ans. = 25.149.

3. Bar silver. London, 55d. per oz. st. Paris, 8 p.c. discount. Rate? Ans. = 25.2817.

4. Silver coins. London, Sp. Dollars, 574d. per oz. 5:30 Fr. each. Rate? Ans. = 25.545.

Paris,

5.

25.20.

FRENCH EXCHANGES.

293

Bar gold. London price? Paris, 2 p.m. premium. Rate
Ans.778. 11d.

6. Silver coins. London price of Mexican Dollars? Paris, 5 Fr. each. Rate 25.20. Ans. 54.86d.

Bills and Exchanges.

The French laws are the same as the English in all essentials.

There are no days of grace on bills or legal claims. A bill must be protested for non-acceptance or nonpayment within 24 hours.

If the acceptor becomes a bankrupt protest may be made at once, and a claim made on the drawer and endorsers even though the bill's term is not expired.

The holder of a foreign bill payable at or after sight is obliged to present it for payment or acceptance within certain specified periods called délais, regulated by the distance, under penalty of losing all claim upon the endorsers or drawer.

Similarly there are also délais under a like penalty for suing parties to dishonoured bills.

Usance is fixed at 30 days, not including the day of date or sight.

Bills drawn, accepted or payable in France are stamped at 5 centimes per 100 fr. up to 1000 fr., then 50 centimes per thousand or part of a thousand.

Bills for endorsement are stamped 50 c. per 2000 fr. and fractions.

Bills due on a Sunday or a Holiday are payable the day before.

Cheques must be "on demand" and fully dated. If on the same place the stamp is 10 cts.—on another 20 cts.

Negotiated foreign bills are paid for the day after. Interest is always reckoned by taking the exact number of days and the year at 360 days.

In the case of long bills on places for which sight exchanges are quoted the seller allows the buyer the interest for the term of the bill at the bank rate where the bill is payable.

In the case of bills on places for which the exchanges are quoted at 3 mos. and which have less time to run, interest for the difference in days is charged to the buyer at 4 p.c.

(1) London-Paris, £824. 6s. 8d., 3 mos. 25.27, short 25 18. Discount, 2 p.c., 14 p.c.

(2) London-Paris, Fr. 7538'60, 3 mos. 25-28, 3 mos. 25·11. Discount, 24 p.c., 14 p.c.

(3) London-Paris, £1250 cheque 25·16, 3 mos. 25.09. Discount, 3 p.c., 2 p.c.

(4) London-Paris, Fr. 8517.20, short 25.181.

(5) London-Paris, £382. 5s. 10d., 3 mos. 25-31. Discount, 13 p.c.

2. Indirect exchange (Paris-London).

(1) Through Berlin, 123 and 20:40.

(2) Through Amsterdam, 212 and 12.15.

(3) Through Portugal, 557 and 521d.

Direct rates, 3 mos., London on Paris, 25-35. Paris on

London, 25.10. Discount, 3 p.c., 2 p.c.

How best to pay debts of £920. 16s. 8d. and 3586 Fr.?