The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-10-02

and independently by an interna-
tional commission to which should
be granted complete authority and
by representatives OF the Treasury
and Banks OF Issue, on the basis Of
the suggestions Of Luigi Luzzati and
Of his practical plan put forth in
the hall Of the French Senate. As
the plan is new and important. ]
have called attention to 1t. to show
a possible way out Of the difficulties
of the situation.
INTERNATIONAL CREDITS.
The question Of international cred
its was the subject Of the recent
financial conference in Brussels.
The decisions Of that conference
were based on the following unim-
peachable premises, namely:
THAT war has profoundly
changed the normal functioning Of
the financial markets.
THAT certain countries cannot
return to their former economic
prosperity unless credits Of long
standing are put at their disposal
by the economically stronger coun-
tries.
3.-That these loans cannot be
granted by the Governments them
selves. but must take the shape Of
private and corporate loans.
4.-That the great obstacle to tho
concession of these loans Is the DIFF
ficulty Of finding adequate security
and guarantee.
However clear and precise these
considerations may appear and are,
the practical conclusions which have
been derived therefrom by the con-
ference are sadly lacking In useful
ness. Three proposals Of detailed
and practical character came UP for
discussion at the conference Of Brus-
sells.
One was the project framed by the
then Belgian Prime Minister and
Minister of Finance, Delacroix. by
which an international reserve bank
was to be formed whose capital
should have been subscribed for by
different countries, and who. by
means Of international obligations,
would have financed international
commerce.
A second was the project Of the
Dutch banker. Ter Meulen, which
contemplated the establishment of
an international trust and guaranty
company for the administration of
the various guarantees offered by
the countries In need Of money. such
a. railroads. customs, receipts, state
monopoiies, etc. under the super
vision Of an international finance
COMMITTEES.
Finally, there was . third project
Of Sir Marshall Reid. delegate Of
India. which modified in some par
ticulars tho Delacroix project COM
binins with II some Of the principles
Of tho Ter Meulan plan.
Italy and Belgium both advocated
the adoption Of the Delacroix pro
ject and. as second choice. that OF
Sir Marshall Reid. but the majority
Of the delegates voted for the Ter
Meulen proposition with but slight
notifications. This solution of the
question Is only feasible in the case
Of Austria and Hungary and Poland.
and could never under any circum.
stances meet the conditions Of either
Italy or Belgium.
AMERICAN PLAN INFESTED.
Although conceived along broader
and moro practical lines than those
Of Lloyd Georges plan Of 1919. the
American system. which goes under
the name of the Edge act, has still
to give positive results.
Ono can therefore say that to this
present day. the vital problem Of
international commercial credits Is
stu far from being solved. The So
luton might be hastened By tho
enactment Of certain measures, such
rs the unification Of international
legislation with regard to letters Of
credit, bills Of lading, ETC., with the
institution Of an international clear.
ing house, an international agree
ment to avoid duplicate or tripli-
cate taxation Of commercial inter.
ests on the part Of the different
countries, and, finally. the extension
Of insurance to all commercial
credits, such rs the English Trade
Indemnity Company now practices
on an even larger scale.
With regard to the tariff, Ameri-
cans must sooner or later realize
that only by not putting obstacles
in the way Of our expectation can
they help Us to reconstruct our
economical prosperity. and thus al
low us to pay for our purchases.
This ability to pay will grow as our
wealth deyelops. and will ev.ntuaIlv