Rationale of Valuation of Foreign Money Obligations

What then should a creditor of a foreign money obligation collect where there was a delay in payment? When are damages for depreciation of foreign money recoverable? As of what time and in what currency are they to be computed? How is the value of a foreign money obligation to be measured where no damages may be had? The answers to these and other incidental questions require a thorough analysis of certain features peculiar to the law of money.

It is the purpose of this article to clarify these problems, to sum up the primary principles by which they are governed and to show why the rational rule, emphasizing reparation of the loss due to depreciation of foreign money after maturity, rather than mere mechanical doctrines, is bound to prevail.