Organized Banking

Cover Organized Banking
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The items of cost involved in the shipping of bullion are familiar. A satisfactory discussion of this topic can be found in almost every textbook dealing with the subject of foreign exchange. Here only brief reference will be made to it. First may be mentioned the item of freight. This naturally varies with all the circumstances that nor- mally affect such^ST charge. NgxLi-irtsTtrance. This too varies with all factors affecting risk. Then there may be mentioned the loss of interest. Gold in the
... hold of a ship is withdrawn from use unless special provision is made for advances of credit against the importation of gold. There may, however, be no loss of interest to the banker shipping gold because at the moment of shipment bills may be sold against the credit which the gold is expected INTERNATIONAL CLEARING 137 to establish. 1 But in cases where there is loss of interest this loss will naturally vary with the rate prevailing in the market from which the gold is withdrawn. Lastly may be mentioned the incidental costs involved in packing, carting, etc.

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