ABSTRACT
In the spring of 1914 the writer, who was then travelling in Germany, found the cost of living there about the same as in England. In 1922, the same journey was substantially cheaper. These wide variations of prices were due entirely to the events happening at the time in the world of foreign exchange, which caused the prices at which German marks could be bought by English pounds to vary in an astonishing manner. There are certainly four things which the word "money" may mean: The standard or measure of value; Medium of exchange; Purchasing power; and A loan of money. The business of exchanging currencies became a necessary part of international trade as soon as international trade developed beyond the stage of barter.
