In the case of a country of which the government has been subject to great financial difficulties, gold has been shipped to satisfy foreign creditors so long as the supply held out, and the exchange with such a country will continue to move adversely with every fresh political embarrassment and any other economic cause reflecting on the national credit. With the collapse of the monarchy in Brazil the value of the milreis fell from 27d. to 5d., and all the Spanish-American countries have from time to time afforded most distressing examples of the demoralizing effects on the currency of unstable and reckless administration. In Europe similar results have been shown by the mistrust inspired by the governments of Spain, Greece, Italy and some other states. The raising of revenue by the use of the printing press creates an inconvertible and depreciating paper currency which frightens foreign capital and severely taxes the unfortunate country which must make payment abroad for the service of debt and other obligations. With the tardy appreciation of the old proverb that "honesty is the best policy" nearly every country of importance has made strenuous efforts to improve the integrity of its money.
Exchange quotations are not published from many of the British colonies, as their financial business is in the hands of a comparatively few excellently managed banks, which establish, by agreement, conventional exchanges fixed for a considerable period, notably in the case of Australia, New Zealand and South Africa. The Scottish and Irish banks supply similar examples of a monopoly in exchange.
The following table taken from the money article of a London daily paper indicates the exchanges which are of most interest to England:--
+-----------------------+-----------------+---------------+---------------+ | | June 14. | June 15. | June 16. | +-----------------------+-----------------+---------------+---------------+ | Paris, cheques | 25 f. 18 c. | 25 f. 18 c. | 25 f. 18 c. | | " Mkt. discount | 2½-5/8 p.c. | 2½-5/8 p.c. | 2½-5/8 p.c. | | Brussels, cheques | 25 f. 23 c. | 25 f. 23½ c. | .. | | Berlin, sight | 20 m. 48¾ pf. | 20 m. 48¾ pf. | 20 m. 48 pf. | | " 8 days | 20 m. 46½ pf. | 20 m. 46¼ pf. | 20 m. 45½ pf. | | " Mkt. discount | 3-7/8 p.c. | 3-7/8 p.c. | 3-7/8 p.c. | | Vienna, sight | Holiday | 24 kr. 02¼ h. | 24 kr. 02¾ h. | | Amsterdam, sight | 12 fl. 13-1/8 c.| 12 fl. 13¼ c. | .. | | Italy, sight | Holiday | 25 lire 15 c. | .. | | Madrid, sight | " | 27 ps. 68 | .. | | Lisbon, sight | " | .. | .. | | St Petersburg, 3 ms. | 94 r. 10 | 94 r. 10 | .. | | Bombay, T.T. | 1s. 4d. | 1s. 4d. | 1s. 4d. | | Calcutta, T.T. | 1s. 4d. | 1s. 4d. | 1s. 4d. | | Hong-Kong, T.T. | 2s. 1-1/16d. | 2s. 1-1/16d. | 2s. 1-1/16d. | | Shanghai, T.T. | 2s. 10¾d. | 2s. 10-5/8d. | 2s. 10-5/8d. | | Singapore, T.T. | 2s. 4-1/16d. | 2s. 4-1/16d. | 2s. 4-1/16d. | | Yokohama, T.T. | 2s. 0-3/8d. | 2s. 0-3/8d. | 2s. 0-3/8d. | |*Rio de Jan'ro, 90 days| 16-9/16d. | 16-9/16d. | 16-17/32d. | |*Valparaiso, 90 days | | | | | Coml. | 14-3/8d. | 14-3/8d. | 14¼d. | |*B. Ayres, 90 days | 48-1/8d. | 48d. | 48d. | +-----------------------+-----------------+---------------+---------------+ * These rates are telegraphed on the day preceding their receipt.