The Washington times., 1920-04-07
CREDIT
FOR ) YEARS
Financial Expert Files Secret
Report With Government on
U. S. Assistance.
PLAN DISCOUNTED HERE
Envoy Evolves Scheme Which
Would Allow Europe to
Trade With World.
By WILLIAM PHILIP SIMMR,
Internatienal News service.


International News service.
What is regarded here rs one Of
the most amazing plans ever evolved
In the world Of finance has Just
come to light through revelations
contained in q secret report to the
British government by Sir George
Paish. now in England after a trip to
the United States.
In the report Sir George proposes
a scheme whereby this country would
back war-stricken Europe for a pc
Rod OF ave years ut the rate Of bill
lions Of dollars In credits annually.
For @RevoIvins" FunA
This would be done by what he
calls q revolving fund" OF thou
sand million dollars, to be set In mo-
tfon by the War Finance Corporation.
and which would ultimately be re-
deemed by selling. in America, bonds
issued by the League of Nations
through the fundamentally Of which
the fund would "revolve.'
When Sir George Paish came to
America last winter considerable mys-
terry attached to his visit. He con-
ferred with the. banking kings, the
Secretary Of the Treasury, and off,
cials OF the War Finance Corpora
tion, but denied he had been sent over
by his government to obtain .
$13, ,o00, 900, 900 loan.
His report, a copy of which Is un-
derstood to be in the possession of the
American Government. reveals, to q
large extent, the probable nature OF
his mission.
Sentiment Against Hin.
For any European country to hoat
a bond issue in the United States at
this time, he stated. is entirely out
of the question. He declared, how
ever, the situation not altogether
hopeless.
"The War Finance Corporation" he
said, "can, 1 am informed, not only
obtain credit from the national and
reserve banks. but it can issue. to
American investors, tsx-free securi-
ties against the collateral of the bills
OF securities II receives from ex-
porters for the credit 1t grants
against them"
"In November, 1914. the agreement
was reached between the bankers OF
England and the bankers of tha
United States for the creation of .
reciprocal banking credit of $780,
100000 for the purpose of financing
Americas adverse trade balance OF
Great Britain to the United States
on the other.
Makes Six Suggestions.
Therefore, I suggest:
THAT these two groups Of AmerS-
can and British bankers should be
reformed, and expanded to repri sent
practically the whole of the bankers
Of America and Great Britain. and
that a reciprocal credit of 1000 mill
lion dollars should be created In place
of the existing reciprocal credit OF
100 million dollars.
THAT the representatives OF tho
A meric an bankers should draw
against shipments OF produce) upon
the representatives of the British
bankers up to the credit limit,
THAT the British group of bankers
should be fully guaranteed against
loss by the British government
That the bills drawn upon London
against the actual export OF produce
and manufactured goods should b
accepted by the British bankers In
the United States and should be dis
counted with the War Finance Cor
poration.
For 1000 Million DoIInr--
THAT the War Finance Corpora
ton should In turn either discount
the bills under its own guarantee
with the bankers OF America, and
through them with the Federal Ro-
serve Board, or should Issue Its own
securities to American investors fos
the purpose OF providing the neccs-
sary funds up to 81 1000, 100000.
THAT the credit OF 81 900 600, 900
granted by the War Finance Corpo-
ration should be for the period Of
hve years.
by this arrangement" the report
Rdds. Europe could obtain American
credits OF nearly $1,000 .oOo, 900 for
the purpose OF providing for it's Inn
mediate necessities. There would be
n cash balance in Europe at the dis
posol Of the banking group, after the
sale Of the American produce, Of
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