The Washington herald., 1914-10-10
CREDIT PLANNED
AMONG nations
British Government, Backed
by France and Russia,
Starts Movement.
REPRESENTATIVE IS HERE
Sir George Paish Arrives in United
States to Lay Project Before
American Financiers.

The British government. backed by the
governments Of France and Russia, is In
terested in a movement that has been
started to reestablish credit relations
among the nations of the world, includ-
ing Germany, despite the existence OF
war now devastating Europe.
Sir George Paish. editor Of the London
statist, who arrived in New York on the
LusitAnia yesterday has come. Il fs
understood. as the representative Of the
British government and British financial
interests on a mission to enlist the sup
port Of the American government and
American bankers for a plan which has
been evolved to carry out the purpose of
this movement
The allied governments. It is believed
are willing TO overlook the possible
financial advantage to Germany, which
may result to their common foe from par
ticipation in the movement. and France
and Russia have authorized the British
government to act as their representative
In the negotiations with the United
States financial interests looking toward
the acceptance Of the plan.
International Credit Bureau.
The plan which Sir George Paish has
come to the United States to promote
provides for the establishment OF an in
ternational credit bureau, which shall be
operated along the lines Of a clearing
house association.
The plan has as its basic idea a more
economic use OF the worlds supply of
gold. As IL Is now, within their own
borders the nations use a variety of
credit Instruments, such as checks, drafts
and bank notes. The war has shown that
there is such an interdependence among
the great trading nations and that their
H.
ceivably possible that under certain safe
guards some form OF credit instruments
could be used in the discharge OF inter
national obligations.
One of the incidental economies Of such
a plan would be the cessation Of the
shipments OF gold coin or bars back and
forth across the Atlantic. Presumably,
the gold would be stored under an agree
ment in much the same way that the
reserve money OF banks Is now carried.
Beneat wouId BE Great.
The practical development Of this plan
would have no precedent in the financial
history Of the world. u will test the in
genuity Of the ablest bankers and fnAn-
cIal experts in this country and abroad
to bring such a plan into effective opera
ton. but the men who are familiar
enough with the subject to venture a
hssty opinion seem TO think that the re-
sultant beneft would not only be imme-
diateiy felt. despite the war. but when
peace finally comes the world would find
itself In a position which would permit
a much freer play in the realm OF inter-
national trade.
The outline of this plan. Il Is under
stood, already has been communicated 10
]. p. MorgSnL Sir George Paish is eE-
pected to discuss II further with Mr.. Nor
gan. and II b probable that the British
&c economist and Mr.. Morgan VIII come TO
Washington together before long for the
purpose Of conferrirg with members OF
the Federal Reserve Board. As yet the
matter has not been taken up with the
Washington officials.
Mr.. Morgan was in Washington Thurs
day. and expected to confer with Sec
retary OF the Interior Lane and other
officials, but he postponed his engage
ments upon learning that the Dusitania,
on which Mrs. Morgan was coming from
Europe, would dock yesterday morning.