The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-02
WORLD CLEARING
HOUSE IS URGED
Belgian Premier Suggests
Plan to Solve International
Exchange Problem.
WOULD 0BVIATE CREDITS
Recommends Establishment Of
Security System and Is
suance of Bonds.
WOULD 0BvIATE CREDITS
BIZ the Associated Press.

! BIZ The Associated Press.
BRUSSELS, Oct. 1.-The organization
of a sort of international clearing house
for commercial exchanges was proposed
by Premier Delacroix of Belgium TO
the International Financial Conference
at to-day's session.
This is the first concrete plan pre-
sented to the conference. 1t provides
for the issuance of gold bonds exchange
able for cash at banks for the payment
of international commercial accounts
Premier Delacroix, in explaining his
plan, gave 1t the name international
institute for financial control and is-
sue" Its objects, he said were to fur.
nish a medium for compensation and
to balance commercial exchange be-
credits or loans other than those of the
| institute, the gold bonds OF which would
be guaranteed bv the resources of the
country utilizing it's facilities.
NJ. Delacroix declared that compensa-
| ton by we'll conceived organizations ap-
peared to him to be the only workable
substitute for present methods. His
proposal, he explained. was the nearest
thing possible to exchanges in kind be-
tween countries. as the international in
stitute would take in pledge the products
of prospective buyers, giving them in
terest bearing gold bonds. These could
| be used to purchase necessities in any
country. The plan would exclude from
| the institutes working all luxuries in
order to force economy
Short Term Bonds.
Bonds of the institute would be OF
the short term variety. so as to prevent
accumulation by any one country, and
the traders taking bonds would be able
to exchange them at banks for cash.
The scheme the Premier pointed out.
amounted to an international bank with
branches in every country guaranteeing
advances by other banks on these gold
bonds in two ways. as follows
First by the general guarantee of
banks in each country. and second by n
subsidiary guarantee by collateral con-
sisting of products of the country. crops,
timber and manufactured articles.
Another proposition unofficially placed
before the conference would provide for
the organization of an associated bank !
ers' international clearing house.
Through this all international transfers
of money would be made 1t would
have branches and sub branches in the
various countries and their provinces
and involve declaration that all pres
ent forms of money would on certain
date cease to have value outside the |
country of issue.
Under this plan no further issues OF
paper money would be permitted except |
by the clearing house, which would is
sue a so-called monetary system termed |
mono" This would be utilized in |
stabilizing international exchanges. The |
issue would be based on values CORE |
spending to the American dollar. on the |
basis of the 1918 exchange-five francs. 4
four shillings, one peso and so on.
New Monetary system.
The members of the Clearing House |
would pledge to it all specie and precious
metals and the issue would be four times |
the amount pledged. Each country would |
receive a proportionate amount of credit !
through the Clearing House. Real estate |
mortgages also would be accepted as
pledges to a certain amount.
NJ Collier, French Vice-President. de-
ciared that never was the need for in |
ternational credit more imperative and |
widespread than at present. THAT !
credit cannot be obtained without the |
aid of the international money market" |
NJ Cellier asserted. THE world needs |
money everywhere to make good the |
setback due to the five years suspension |
If normal life. The difficulties in OBJ |
tanning money are due to the overwhelm- |
ing demand of the world. impoverished |
by short production and overconsump- |
ton. The old financial mechanism needs |
n compiler read ustment."
In dealing with Frances story of re- |
construction Pierre Cheysson explained !
that the apparently uufavorable show |
ing expressed by the condition of the |
French treasury was due rather to the |
rehabilitation OF the devastated regions |
than the governmental expenses. lie |
said that Treasury officials were discus
sing with representatives Of other inter- |
ested treasures an arrangement for the |
settlement of advances amounting to !
1874. 000.0 00. 900 francs made by them !
to France lie pointed out that this !
debt was partially offset, by 10000 !
10000 francs loaned by France 10 the |
Allies.
A report by the unofficial representa- |
tives of the United States at the con- |
ference also vas read