ABSTRACT
[…] It is true that the depreciation of English currency compared to ours gives some gain to the French capitalist who changes his French money into English money to invest it in London. The Frenchman can at the day’s rate buy a pound sterling for 19 francs 25 centimes, which before depreciation would have cost him 24 francs. With an equal capital, he can thus buy a larger capital in England and consequently a larger income. But he loses what he gains on the capital he sends to England on the interest he is paid in England and which he needs to have transferred to France. Each pound sterling of this interest in France gives him only 19 fr. 25 c. and not 24 fr. The rate per cent thus remains the same. Furthermore, he loses the commission the Paris banker makes him pay and that of his correspondent in London. […]
