The Bridgeport times and evening farmer., 1920-04-02
PAISH PRESENTS
 CREDIT SYSTEM

London ApCfl 2.---P1ans for the
 creation of large revolving credit by means of which trade between Great Britain and the United States
 may be increased are discussed by
 Sir George Paish in a recent article on '"The United States and the Econ omic Question" appearing in Ways and Means. The scheme suggested is in part as follows:
 ttAt the end of 1914 an agreement was reached between the bankers of England and the bankers of the
 United States for the creation of re-
 ciproca1 banking credit of $100,000,-
 900 for the purposes of financing
 Americas adverse trade balance at
 time on the one hand, and for the
 purpose of meeting any future ad-
 verse balance of Great Britain to
 the United States on other.
 Therefore I would suggest CD
 that these two groups of American
 and British bankers should be ex-
 banded in order to represent prac- ticaIly the whole of the bankers of America and Great Britain, and that
 reciprocal. credit of $1,OOO,OO0, ,0O0
 should be created in place of the existing reciprocal credit of $100,- 000,000. CD That the representa- tives of the American bankers should l draw (against shipments of produce) 1 upon the representatives of the Brit
 ish bankers up to the credit limit. (S) That the British group of bankers should be fully guaranteed against loss by the British Government (4) That the bills drawn upon London
 against the actual export of produce and manufactured goods should be accepted by representative of the British bankers lin the United States ! and should then be discounted with
 the War Finance Corporation. (5) That the War Finance Corporation should in turn either discount the bills under it's own guarantee with
 the bankers of America and through them with the Federal Reserve Bank or should issue its own securities to
 American investors for the purpose
 of providing the necessary funds up to $1,oO0, 100000. (6) That the credit of $1,000, 100000 granted by the War
 Finance Corporation should be for a period of five years.
 eff the proposed credit from the War Finance Corporation could be converted into revolving credit fo1 five years 1t would enable Europe to obtain all the credit it required so far as the United States could supply that credit until it was once again able to pay for all the produce and goods it needed without the creation of any new credit.
 Tn order to convert the singlo credit into revolving credit would suggest that after the produce is sold l in Europe the proceeds should be paid over on the Continent to the repar- | aion committee of the League of Ma | tionS and that that committee should
 use the money for purposes of re- construction and should pay for the
 money by selling League of Nations 1 bonds to the group of British bank 1 CTS. The group of British bankers 1 would send the League of Nations
 bonds to the group of American
 bankers in order to repay the credit | '~The American bankers would ther 1 sell them to the American investins | public, and the original credit from | the War Finance Corporation wouLc
 be discharged. As the bonds were
 sold to the public fresh credits could
 be granted to Europe and the opera. tion repeated