Evening star., 1921-06-26
international Credits.

In connection with the recent an
nouncement concerning the refundins
Of the allied debts the discussion OF
world finance now being carried on IN
the independence Beige is particularly
interesting. The following article
explains the plan adopted by the
international financial conference re-
Gently held in Brussels. which would
establish private credits through a
guarantee of the resources OF the
country assessed by special agents
appointed by the league OF nations.
The Independence says:
"In all parts Of the earth the most
distinguished economists and the
greatest technical experts are trying
continually to find a remedy for the
financial confusion which Is Weighing
on impoverished Europe. And the
problem in the face Of the tremendous
debts occasioned by the war some-
times seems SO difficult to solve that
in some creditor countries, particular
ly in America, some eminent bankers
resolutely brave the matter and ad-
vocate canceling the whole or the
part. as the case may require. Of the
Apart from this radical suggestion.
other interesting ideas propose the
creation of international financial or
ganizations. in order to open credits
for those countries which were vic
Tins of the war. Here is one of the
was approved by the international
financial conference held at Brussels
last September. and by the commission
of international credits. whose vote
was ratified unanimously by the
plenary conference.
$50 much Of it as has been dsfin-
itely accepted constitutes a practical
project which can be applied as soon
as the nations concerned have ex-
pressed the desire to profit by 1t.
The 'Meulen' plan is an attempt to
overcome one Of the greatest OBJ
business. knowing the difhculties of
certain business men in obtaining
short or long terms OF credit. which
are indispensable to their imports.
This project does not pretend to be
the -nostrum against all economic
"The project consists essentially in
this-that it provides encouragement
to commerce by means of special
guarantees for increasing the credit
of importers: that these guarantees
are to be formed by state obligations
and will be lent by the state which
issues them to its own people: that
tions will be established SO as to In
spire the clients with confidence from
the fact that these obligations can
only be issued to the amount OF the
value in gold Of the cash in hand
which covers .s them. IN. value Wn1Sh ,,nna1
commission Of competent men chosen
by the league Of nations from which
they will hold their power; that these
obligations will be Of kind to in
terest the clients. for the money in
which they viii be expresses; ,ss s,;.s.l viii be be
principle. it will be the money Of
their own country
Undoubtedly this project is open
to criticism. But It must be admitted
that no project Of international credit
would YOU. e e yths ons !. tss
Il provides the means OF mobilistng
the whole credit Of . country In
order to increase that Of each single
one of its own tradesmen. Tho re-
Who formerly hesitated to do business
with private firms would no longer need
to hesitate. A hrst attempt made under
these conditions with the protection
Of n sure guarantee would give them
an opportunity Of seeing Themselves
whether they had exaEserated the
shows the possibility of solid COM
mercial relations. the fact alone that
the application Of the project per-
mitted these first transactions will
contribute to the Improvement OF
Conditions and will decrease future
Tsks. There IL every reason to be-
iieve that it will be tho beginning OF
n series Of progressive improvements
Vhioh viii soon retoStA4e Industry