Excavations. The forgotten history of the remote past has been reconstructed by those
scientists who have explored the sites of ancient seats of civilization. Egyptian and Babylonio-Assyrian investigations date from the middle of the eighteenth century, but it was not until the middle of the nineteenth century, when modern scholars first penetrated the secrets of the lost languages (see Cuneiform Writing and Hieroglyphics) that the ancient civilizations were rendered more or less articulate. As the texts were being deciphered with increasing ease and accuracy, a basis was provided for archæology, and it became possible to frame chronological systems. During the latter years of the nineteenth and the early years of the present century, excavators, philologists, and ethnologists have provided a fairly continuous and detailed history of man from 3000 B.C. till classical times, thus bridging a gulf which used to be misty with doubtful legends and traditions. The most dramatic excavations were those begun by Heinrich Schliemann in 1871 at Hissarlik, the site of ancient Troy. On the hillock he dug through nine successive settlements. He afterwards excavated at Mycenæ and Tiryns in Greece and found evidence of a high pre-Hellenic culture. Following up the clues thus afforded, Sir Arthur Evans and others, excavating in Crete during the opening years of the present century, discovered abundant relics, including palaces and towns, of the earliest Ægean civilization now referred to as Minoan (see Crete). Of late years Central and Western Europe have yielded evidence of the 'drift' of Minoan culture to outlying parts. Excavations in Russian Turkestan and Chinese Turkestan have revealed traces of ancient culture centres dating back beyond 2000 B.C. In the Americas the excavators have thrown considerable light on the pre-Columbian civilizations of Peru, Central America (Maya), and Mexico, but the picture-writings have not been deciphered. See Babylonia; Crete; Egypt; Troy.
Ex´cellency, a title given to ambassadors and plenipotentiaries, governors of colonies, the President of the United States, of France, &c.
Excess Profits Duty, devised in 1915 to meet the extraordinary expenditure occasioned by the war, is a tax upon the profits of certain trades and businesses carried on in the United Kingdom, or owned or carried on abroad by persons resident in the United Kingdom, in so far as these profits, after deduction of a specified allowance, exceed a pre-war standard. The main exceptions are agriculture, offices and employments, and professions where personal qualifications predominate and only small capital is necessary. In some cases, e.g. estate agencies, where a portion of the profits arises from professional skill, only the portion otherwise arising falls into charge. The pre-war standard is an alternative one at the option of the taxpayer. Firstly, it may be a profits standard—the average of the profits of any two of the last three pre-war years, or if there have been only two pre-war years, then the average profits of those years, or the actual profits of the last year, or if there has been only one pre-war year, then the actual profits of that year. Where the average profits of the last three pre-war years are 25 per cent less than the average of the three years immediately preceding them, the taxpayer may take the average of any four of those six years. Secondly, it may be, and as a general rule where the business has not had one full pre-war year must be, a percentage standard, calculated at the appropriate rate on the capital in the business at the end of the last pre-war trade year, or where there has not been one pre-war year, then on the average amount of capital employed (a) during the year or accounting period in question, or (b) in respect of periods ending after 31st Dec., 1919, during the first accounting period. The percentage standard of sole traders, partnerships, and private companies may in respect of accounting periods ending after that date be increased by £500 per annum for each working proprietor, but not so as to exceed £750 per annum each. The general free allowance is £200, increased in 1920 to £500 for new or re-opened businesses of ex-service men. A further abatement is now granted where profits do not exceed £4000, with the result that liability cannot arise unless profits exceed £832.
The rate of duty, at first 50 per cent, was raised to 60 per cent in 1916, and to 80 per cent in 1917. Reduced to 40 per cent in 1919, it was again increased to 60 per cent by the Finance Act, 1920. It was abolished in 1921. Undoubtedly
it was injurious to trade and an incentive to wasteful expenditure, but an effective substitute for supplying the unparalleled financial needs of the State resulting from the war apparently could not be devised.
'Munitions Levy' is the counterpart of Excess Profits Duty in its application to Government-controlled establishments for the production of munitions of war.
In the fiscal year 1919-20 the tax produced £290,045,000, while the estimate for the year 1920-1 was £220,000,000.
Exchange, a place in large commercial towns where merchants, agents, bankers, brokers, and others concerned in commercial affairs meet at certain times for the transaction of business. The institution of exchanges dates from the sixteenth century. They originated in the important trading cities of Italy, Germany, and the Netherlands, from which last-named country they were introduced into England. The Royal Exchange of London was established by Sir Thomas Gresham in 1556. In some exchanges only a special class of business is transacted. Thus there are stock exchanges, corn exchanges, coal exchanges, cotton exchanges.
Exchange, in commerce, that species of transactions by which the debts of individuals residing at a distance are cancelled by order, draft, or bill of exchange, without the transmission of specie. Thus, a merchant in London who owes £100 worth of cotton goods in Glasgow gives a bill or order for that amount which can be negotiated through banking agencies or otherwise against similar debts owing by other parties in Glasgow who have payments to make in London. The creditor in Glasgow is thus paid by the debtor in Glasgow, and this contrivance obviates the expense and risk of transmitting money. The process of liquidating obligations between different nations is carried on in the same way by an exchange of foreign bills. When all the accounts of one country correspond in value with those of another, so that there is an even balance, the exchange between the countries will be at par, that is, the sum for which the bill is drawn in the one country will be the exact value of it in the other. Exchange is said to be at par when, for instance, a bill drawn in New York for the payment of £100 sterling in London can be purchased there for £100. If it can be purchased for less, exchange is under par and is against London. If the purchaser is obliged to give more, exchange is above par and in favour of London. Although the numerous circumstances which incessantly affect the state of debt and credit prevent the ordinary course of exchange from being almost ever precisely at par, its fluctuations are confined within narrow limits, and if direct exchange is unfavourable between two countries this can often be obviated by the interposition of bills drawn on other countries where an opposite state of matters prevails. See Bill of Exchange.—Bibliography: G. J. Goschen, Theory of Foreign Exchange; H. Withers, Money Changing.