The Birmingham age-herald., 1920-03-02

be at that conference Mis- most inti- mate friends in New York so assert
 It may be that at the international conference a plan will be adopted which will make possible a speedily return to normal conditions of the foreign ex- changes. If that be done American busi- ness interests will be gratified. They are today facing g situation which none would have thought possible few months ago. They are realizing that a rapid and heavy falling off in our ex- ports is in progress. while at the same time there is an amazing increase in im- ports.
 TITS A GOOD THING
 This condition is of itself regarded as of advantage provided it be not con- tinued too long. It will serve to de- crease the international trade balance. Report was made in this column some weeks ago of a tentative idea or plan which had been much discussed in finan- cial circles. and, according to common understanding, mentioned informally. al- most confidentially, to Senator Glass W hen he was Secretary of the Treaury.
 It had become evident that neither gold nor the marketing of foreign securities r the United States or furthermore heavy purchases by the United States of foreign made commodities and raw mate rldlS, WOulu De sufficient Ol DTlnR the international trade balance down to nor nal or to restore healthful conditions in international trade, Therefore the first question that arose was this, What de- vice or method can be worked out where by exchange conditions can be made nor nal and Europe be enabled to pay for the commodities she will for some years purchase in the United States? Probably in the tentative answer to this question ( l@z kI- 4k-. ~..~4 which asserts that MT. Davison has gone to Europe to organize great money power and trade institution.
 Gradually the opinion became conviction that whatever is done must be achieved through international cooperation, the nations acting in this respect almost as a unit. Of course this would seem to involve moral sponsorship and possibly an actual guarantee of any circulating medium which could be used to facilitate exchanges and to take the place of credit. It may be that the international conference will decide that no better plan can be devised than the issuing of scrip guaranteed by the cooperating na- tions. This scrip would be available only for the purchase of commodities. Very likely the idea is based upon the plan adopted by the Clearing House Assoca- ton whose certificates, when issued, are available only for the payment of bal ances in the clearing house.
 The customer of the United States in Poland or any other nation would be able through his bank and by mak ing for his purchases and when he has converted the raw material or other purchases into saleable commodities then he would be in receipt of funds sufficient to 1iquidate the scrip.
 Very likely some plan of this kind will be adopted. But 1t involves for it's success the cooperation of the United States government. Whether that can be obtained no one can now tell. If 1t cannot be secured then some other method must be adopted. Herein is contained the true reason for the visit of MT. Davidson and other lead ing men of finance to Europe at this time although of course it Is also Mir. Davidson's purpose to take part in the organization of the World League of the Red Cross Association.