T HE importance of Mint Pars, which represent the theoretical exchange value of one currency in terms of others, based on the amount of gold represented by each, lies in the fact that before the war actual exchange values approximated to these theoretical va:1.ues very closely, and were bound to do so. The actual Anglo-French rate of exchange, for example, varied above and below 25 ·22 francs to the extent of a few centimes only. The Foreign exchange machinery which we have was built up on the assumption that the theoretical rates of exchange would be nearly the same as the actual rates. It is because this assumption no longer holds good that the Exchanges are in their present state of disorganization.