[97] E. W. Kemmerer, _Seasonal Variations in the Relative Demand for Money and Capital in the United States_. Publication of the National Monetary Commission, Senate Document No. 588, 61st Congress, _2d Session_, pp. 96-100. [98] [Owing to the growth of deposit banking among the farming classes, the increasing diversification of industry in the agricultural States, _Sub-treasury operations_, and the offer of remunerative rates of interest on loans in New York during the fall, the net autumnal currency movement since 1907 has frequently been to New York. See E. M. Patterson, _Certain Changes in New York's Position as a Financial Center_, _Journal of Political Economy_. Vol. XXI, June, 1913, pp. 523-539.] [99] E. W. Kemmerer, _op. cit._, pp. 101-105. [100] _Ibid._, pp. 118-121. [101] _Ibid._, 54. 55. [102] O. M. W. Sprague, _History of Crises under the National Banking System_, Publications of the National Monetary Commission, Senate Document No. 538, 61st Congress, _2d Session_, pp. 293-297. CHAPTER XVIII FOREIGN EXCHANGE THE NATURE OF FOREIGN EXCHANGE [103]The bill, or order to pay money in a foreign centre, is the commodity that is actually bought and sold by dealers in foreign exchange, but it is better for the moment to leave bills out of consideration. They are only the tangible expression of the claim for money in another centre, and at this early stage of our inquiry it is better to keep our minds fixed on what is at the back of the bill, namely, the money in a foreign centre to which it gives its holder a claim. The French buyer of a bill on London buys it, as a rule, because by sending it to his English correspondent he can discharge a debt to him in English money. What he really buys with his francs is so many English pounds, and the labyrinth of the foreign exchanges is much easier to thread if, before we complicate the question by talking about bills, we keep our eye on the comparatively simple problem which is the key to the puzzle, namely, the exchange of one country's money for another's.