New-York tribune., 1921-03-13
Initiation Of No Use

> The material values destroyed dur
- ing the war cannot be restored
by currency imitation. Production that
will increase existing material goods is
the only answer.
. 4 broad international scheme for
y. increasing production, reastab-
fishing trade, readjusting credits and
stabiizing exchanges must be under
taken.
This third phase is embodied in the
ran for the creation of an interna-
tional credit commission to administer
ghe credits of the world. English bank
ers believe that such a commission
could do much to solve the problems of
credit, deprecated money and the f1uc
,uating exchanges that result. The
plan generally favored is that advanced
by Mr Ter Muelen. an Amsterdam
banker. al the Brussels international
financial conference last year. Its sue
cess hinges on one thing-the attitude
o. America. Europe admits that with
out the financial support OF America
any plan OF reconstruction is at best
makeshift. The United States is now
the greatest creditor nation. Europe
looks to her both for the money with
which 10 finance reconstruction and
tor the initiation of such reconstruct
ton work.
Sir r. Vassar-Smith. Bt., chairman
G. Ilovd's Bank, outlined the Inter
rational Credits scheme in the annual
report of the bank recently. He said:
"One Of the first things to undertake
* the restoration of trade between the
iitferent countries. The Ter Muelen
;lan has as its primary purpose the
yroviding Of guarantees so that an eX-
rorter NAV be sure of payment when
supplying merchandise to the impov-
erished countries Of credit 1t pro-
iGes for the creation of an interna-
tonal commission with powers to con
troll and administer certain assets
which governments are prepared to
pledoe With q view to obtaining i'm
ncrts on credit for themselves or for
their nationals.
The commission will examine the
securities to be pledged and determine
the gold value OF the credits which Il
rould approve against the security OF
these assets. The government con
cernod. having agreed to the gold val
latior viii prepare bonds with a cur
1ency OF ;. 10 or 1o years, bearing IN
terest The principal and interest on
these bonds would have to be payable
in ach case in the currency selected by
the exporter The bonds Will then be
countersigned by the international
Commission in proof of registration by
them and as evidence that the partlcu-
ar transaction in respect of winch
hey are issued is approved by the
commission
The government may then lend tn
tonds to lis own nationals on its own
terms as to security. The importer,
having possession Of the bonds, IS thus
iyee 10 negotiate with the exporter as
to the rate Of interest and the ma
turity of the credit to be desired.
after receiving bonds duly counter
signed the importer may pledge them
with the exporter
The Ter .Muelen plan is considered
the broadcast. most comprehensive
.cheme OF the many that have been ad-
yanced here. II offers an immediate
solution TO the difficulties now attend
iug in the way of international trade
between countries where credits are
uncertain Once this trade can be re
sumed the situation Will slowly begin
TO adjust itself 1t furthermore offers
medium Of exchange that is econom-
.cany sound. Europe is now suffering
from currency imitation and cannot re-
cover normal trade until some medium
is found to take the place Of depre-
GATED paper money.
The present inha lion and the need
Tor dehation is grave question
throughout Europe. Reginald Nc
kenna, chairman of the London JOINT
City and Midland Bank, devoted much
lf his ANIMAL rpDorf TO this DrOblem