NEW YORK.
Date. Spot. One Month
Forward.		 Difference
per cent
per annum.
1920
January 3·79 + ⅜ cent +1·2
February 3·48⅞ + ¼ „ + ·9
March 3·41⅜ + ¼ „ + ·9
April 3·90¾ + ⅜ „ +1·2
May 3·82⅞ + ½ „ +1·6
June 3·89-15/16 + ⅜ „ +1·2
July 3·96⅛ + ⅝ „ +1·9
August 3·67 + ½ „ +1·6
September 3·56⅞ + ½ „ +1·7
October 3·48-5/16 + ½ „ +1·7
November 3·44⅜ +1⅝ „ +5·7
December 3·49 + ½ „ +1·7
1921
January 3·58⅜ + ⅜ „ +1·3
February 3·84¾ +1 „ +3·1
March 3·88⅜ + ⅞ „ +2·7
April 3·92 + ⅜ „ +1·1
May 3·98 + ½ „ +1·5
June 3·90⅝ + ¾ „ +2·3
July 3·71-15/16 + ⅝ „ +2·0
August 3·56⅜ + ½ „ +1·7
September 3·71⅝ + ⅜ „ +1·2
October 3·76⅛ + ½ „ +1·6
November 3·92-1/16 + ⅞ „ +2·7
December 4·08-5/16 + ⅜ „ +1·1
1922
January 4·20½ + ⅛ „ + ·4
February 4·30½par...
March 4·42 „...
April 4·39 „...
May 4·44½ „...
June 4·46¾ + 3/16 cent + ·5
July 4·44¾ + 1/16 „ + .17
August 4·45¼ + 3/16 „ + .5
September 4·46 + ⅜ „ +1
October 4·42 + ¼ „ + .68
November 4·46½ + ⅝ „ +1·68
December 4·51¾ +1 „ +2·65
1923
January 4·64¾ +1¼ „ +3·23
February 4·67 + ⅞ „ +2·25
March 4·70⅝ +1 „ +2·55
April 4·66⅞ + ¾ „ +1·93
May 4·62½ + 15/16 „ +2·43
June 4·62¾ + ⅞ „ +2·27
July 4·56½ + ½ „ +1·31
August 4·57 + ¼ „ +0·66
PARIS.
Date. Spot. One Month
Forward.		 Difference
per cent
per annum.
1920
January 40·90 + 6 centime +1·7
February 46·90 + 4 „ +1·0
March 48·55 + 3 „ + ·7
April 57·80 + 3 „ + ·6
May 64·04 + 1 „ + ·18
June 50·45 - 5 „ - 1·2
July 47·05 - 10 „ - 2·8
August 49·00 - 10 „ - 2·4
September 51·22½ - 5 „ - 1·2
October 52·10 - 10 „ - 2·3
November 54·45 - 15 „ - 3·3
December 57·45 - 15 „ - 3·2
1921
January 61·07½ - 30 „ - 5·9
February 54·50 - 20 „ - 4·4
March 54·40 - 27 „ - 5·9
April 55-37½ - 15 „ - 3·3
May 50·22½ - 12 „ - 2·9
June 46·35 - 10 „ - 2·6
July 46·72½ - 10 „ - 2·6
August 46·77½ + 2 „ + ·5
September 48·68½ + 3 „ + ·7
October 52·27½ + 1 „ + ·2
November 53·44 + 4 „ + ·9
December 54·24 + 2 „ + ·4
1922
January 52·32½par...
February 51·62½ „...
March 48·45 „...
April 48·15 - 1 centime - .25
May 48·47 + 1 „ + .25
June 49·00 + 2 „ + ·49
July 56·20 + 8 „ +1·8
August 54·10 +10 „ +2·21
September 57·40 + 3 „ + ·63
October 58·25 + 3 „ + ·62
November 64·65 +14 „ +2·59
December 64·30 + 8 „ +1·49
1923
January 66·40 + 5 „ + ·9
February 75·50 +16 „ +2·54
March 77·50 +11 „ +1·70
April 70·40 + 5 „ + .85
May 69·35 + 5 „ + ·86
June 71·60 + 5 „ + ·84
July 78·35 + 4 „ + ·61
August 79·20 + 9 „ + ·60

First day of month in 1920, first Wednesday
in 1921, and first Friday thereafter.

Table of Exchange Quotations in
London One Month Forward

ITALY.
Date. Spot. One Month
Forward.		 Difference
per cent
per annum.
1920[38]
January 50 - ⅛ lire - 3·0
February 55 - ⅛ „ - 2·7
March 62¾ - ¼ „ - 4·7
April 80½ - ¼ „ - 3·7
May 83 - ½ „ - 7·1
June 66⅜ - ½ „ - 9·1
July 65⅜ - ½ „ - 9·2
August 70 - ½ „ - 8·5
September 76¼ - ½ „ - 7·9
October 83-9/16 - ½ „ - 7·2
November 93-11/16 - ½ „ - 6·4
December 94-11/16 - ½ „ - 6·3
1921
January 104⅜ par ...
February 105½ - ¾ lire - 8·5
March 106½ - ⅝ „ - 7·0
April 92¼ - ½ „ - 6·5
May 81⅜ - ⅝ „ - 9·1
June 73-11/16 - ½ „ - 8·1
July 77 - ½ „ - 7·8
August 85-1/16 - ¼ „ - 3·5
September 85-9/16 - ⅜ „ - 5·2
October 94⅛ - ⅜ „ - 4·8
November 96⅝ - ¼ „ - 3·1
December 93-15/16 - ½ „ - 6·4
1922
January 97⅛ - ¼ „ - 3·0
February 92½ - 7/16 „ - 5·7
March 83-3/16 - ¼ „ - 3·6
April 83-5/16 -15 pts. - 2·16
May 83 -10 „ - 1·45
June 85⅞ - 3 „ - ·41
July 100 par ...
August 96 par ...
September 101 -11 „ - 1·31
October 103 -10 „ - 1·16
November 106 - 8 „ - ·91
December 93¾ -20 „ - 2·56
1923
January 92 -11 „ - 1·43
February 97½ -23 „ - 2·83
March 97⅜ -23 „ - 2·82
April 93¾ -18 „ - 2·30
June 99 -15 „ - 1·82
July 106⅞ -22 „ - 2·47
August 105½ -28 „ - 3·18
GERMANY.
Date. Spot. One Month
Forward.		 Difference
per cent
per annum.
1920[38]
January 187 marks
February 305
March 337
April 275
May 218½- 1 „ - 5·5
June 150½- 1 „ - 8·0
July 150 - ½ „ - 4·0
August 160½- 1 „ - 7·5
September 176 - ½ „ - 3·4
October 215 - 1 „ - 5·6
November 266½- ½ „ - 2·2
December 241½- 1 „ - 4·9
1921
January 269½- 2 „ - 8·9
February 243½- 1 „ - 4·9
March 24½- 1 „ - 4·9
April 239½- 2 „ - 10·0
May 262½- 1¾ „ - 8·0
June 245¼- 1½ „ - 7·3
July 279½- 1½ „ - 6·45
August 286 - 1 „ - 4·2
September 347½- 1½ „ - 5·1
October 471 - 5 „ - 12·7
November 764½- 2¼ „ - 3·5
December 855 - 1½ „ - 2·1
1922
January 777½- 3½ „ - 5·4
February 872 - 2½ „ - 3·4
March 1117 - 1½ „ - 1·6
April 1440 - 8 „ - 6·6
May 1270 - ½ „- ·47
June 1222 par ...
July 2320 + 5 marks+ 2·59
August 3175 +20 „+ 7·56
September 5700 nominal ...
October 9900 + 450 mks+ 54·54
November 26,250 + 6,000 „+274·3
December 35,000 + 5,500 „+188·58
1923
January 39,500 + 1,750 „+ 53·16
February 190,000 + 27,000 „+170·53
March 105,000 + 10,000 „+114·28
April 97,500 + 20,000 „+141·18
June 350,000 + 40,000 „+137·14
July 900,000 + 30,000[38] „+ 40·00
August5,500,000 +1,500,000[38] „ +327·27

[38] Nominal.

Forward purchases of francs, after being dearer than spot transactions by 2½ per cent per annum or more from the middle of 1920 to the middle of 1921, were nearly level in price from the middle of 1921 to the middle of 1922, whilst since that time they have been ½ to 2½ per cent per annum cheaper. In the case of lire there have been much wider gaps, forward purchases being frequently 3 per cent or more dearer than spot. In the case of German marks, the forward rate, after ranging round about 5 per cent per annum dearer than spot, has reached, since the autumn of 1922 and the complete collapse of the mark, a figure fantastically cheaper, thus reflecting the sensational rate of interest for short loans current inside Germany.

But in all these cases (except in Germany since the complete collapse of the mark), whether forward exchange is at a discount or at a premium on spot, the expense, if any, of dealing forward has been small in relation to the risks that are avoided.

Nevertheless, in practice merchants do not avail themselves of these facilities to the extent that might have been expected. The nature of forward dealings in exchange is not generally understood. The rates are seldom quoted in the newspapers. There are few financial topics of equal importance which have received so little discussion or publicity. The present situation did not exist before the war (although even at that time forward rates for the dollar were regularly quoted), and did not begin until after the “unpegging” of the leading exchanges in 1919, so that the business world has only begun to adapt itself. Moreover, for the ordinary man, dealing in forward exchange has, it seems, a smack of speculation about it. Unlike Manchester cotton spinners, who have learnt by long experience that it is not the hedging of open cotton commitments on the Liverpool futures market, but the failure to do so, which is speculative, merchants, who buy or sell goods of which the price is expressed in a foreign currency, do not yet regard it as part of the normal routine of prudent business to hedge these indirect exchange commitments by a transaction in forward exchange.