The New York herald., 1921-09-24
Sir Drunmond Fraser's Job.

Sir Drunmond Fraser's Job.
What Sir GEORGE PAIsH was not
able to do in promoting European
reconstruction by urging credits from
America on his visit here two years
ago Sir D. DRUMMoND FRASER, X. E.
E., organizer of the Ter Meulen in
ternational bond scheme, may with
proper tact succeed in doing at least
in part during his stay on this side.
Sir DRUMMoND FRASER has just ar
rived for the October convention of
the American Bankers Association
at Los Angeles.
Sir GEORGE PAIsH made the mis-
take of hitting the American people
| in the eye with the statement that
this country must provide S35,000-
100000 in credits If Europe was to
be saved from economic ruin and IL
the paper money issues were to be
overcome. In reckoning the amount
OF credits needed he counted in evrry-
thing from the refunding OF the
allied debts to the financing OF the
last chimney in the reconstruction
of France.
Sir GEORGE put a heavy charge Of
statistical dynamite into the opening
paragraph of his argument and fol-
lowed it up with a bombardment Of
facts and fancies which, had the
bombardment been more than figura-
tive. would have left the American
investment field drear and lonely
no mans land, with Europe living
again in ease and comfort off our
largess. His ranks of credit figures
passed in magnificent review but
served only to intensity the demand
for numerical disarmament.
PAIsH was a publicist with his own
ideas OF how TO produce an effect
Sir DRuMMoND FRASER is banker
by profession as well as by heredity.
His is the viewpoint of a man born
and trained to the conservative use
OF figures when they are shaped and
| pointed as darts aimed at the inves-
tors pocketbook. He is son of the
late w. MURRAY FRASER. who was a
director of the London City and Mid
land Bank, the largest in the world.
He is managing director of the Man
chester and Liverpool District Bank,
and president of the Manchester and
District Bankers Institute. And he
is a Scotsman.
Sir DBuNrMoND FRAsERs main job
is to promote the Ter Meulen scheme.
But American bankers will expect
from him some authoritative infor-
nation on the actual credit require
ments of Europe, because he has de-
voted the better part Of this year go
| ing about Europe and ascertaining
the facts. The Ter Meulen bond
scheme gets off poorly here. as Sir
DEUMMoNp will find. because it has
side connection with the League
Of Nations which was originally
thought to be necessary to make the
bonds internationally negotiable.
This very connection would now
make the bonds unacceptable.
If the Ter Meulen scheme Is to be
adopted events in the money market
| during the last two years have
proved It will have to be reduced to
the simple issuance OF bonds secured
by adequate tangible security. sub.
iect TO the closest banking scrutiny.
and in amounts limited to the re.
| Quirements in each individual case.
The possibility Of a League of Ma
tions blanket international bond is.
sue TO be spent under the supervision
and according to the political expe.
diency OF governments has entirely
disappeared. II indeed it ever OK.
listed. Even collective Endorsement
by various governments OF specific
loans will likely prove handicap,
because collective Endorsement i'm
plies a weakness somewhere or it
would not be necessary.
Experience of the last two years
also has proved that the guaranty
or even the approval Of the United
States Government is not necessary
to the success Of foreign bond issues
here, although the individual guar
anty OF foreign Governments is re.