FOREIGN LEGION

paner, and the other good commercial ills. The cnoief influences affecting the foreign exchanges are (1) the relative demand for and supply of bills of exchange on the two countries concerned; (2) the comparative purchasing power of the currencies of the countries. When, for example, French merchants have many payments to make in London, and only a limited number of bills in London are in the market, the number of francs given for a pound increases, and the rate moves in favour of London. The supply of and demand for bills of exchange is mainly determined by (a) the balance of imports and exports between the countries. Increased imports into one country means not only an increased supply of bills on that country, but increased demands for bills on the other to pay for the goods, and so move the exchange against the importing country. (b) Relative rates of discount, which determine whether it is worth while to transfer money from one country to another, thereby making it dearer or cheaper. (c) Political or other events which affect confidence, and so encourage or hinder investment in a country. The comparative purchasing power of currencies is to-day of supreme importance in determining rates of exchange. Owing to the currency of most countries now consisting of inconvertible paper, and to restrictions on the movement of gold, prices (which expre the value of the currency limit in terms of commodities) in each country are largely independent of those in other countries, and with movements in comparative price level come movements in the exchange. Given the po ibility of gold movement, the exchange may move so that it is cheaper to send gold one way or the other than to buy bills, and the exchanges are then said to have reached gold or specie point. The Gold Standard was suspended by Britain on 21st Sept., 1931. Money rates since that date are purely nominal.; Among other countries, in which the Gold Standard has recently been suspended, are India, Canada, New Zealand, Norway, Sweden, South Africa, and the U.S.A. BIBLIOGRAPHY: Lord Goschen, Foreign Eachanges; G. Clare, A.B.C. of Foreign Exchanges; H. Deutsch, Arbitrage; Ottomar Haupt, Arbitrages et Parités; H. Withers, Money Changing; W. F. Spalding, 4 Primer Of Foreign Hachange. § FOREIGN LEGION, a unit of the French army, consisting of four regiments stationed at Sidi-bel-Abbis and Saida in Algeria, and first raised in the time of Louis Philippe. In 1914 the strength of the four regiments was in the neighbourhood of 25,000 men, of which Germans, Alsatians, Swi , and Dutch provided some 50 per cent, French 15, Austrians 12, Italians 10, Spaniards 6, and other nationalities, including English, 7 per cent. It is thus evident that the Foreign Legion is, as its name implies, composed of representatives of every nation; the officers, however, are all French. Enlistment is voluntary, and is for a period of five years in the first place, which can be extended by further periods to complete the fifteen years’ total service which qualifies for a pension. The Legionary can rise to the rank of under officer, and in rather exceptional cases to that of officer.