New-York tribune., 1921-10-07
Foreign Credit
Relief Plan Is
Given Bankers
Sir Drummond Fraser, of
London, Outlines World
Age ncy to Guaranty
Weaker Nations Accounts
#. B. McAdams Elected
Richmond Man Chosen Head
of Association Third Day
of Los Angeles Convention

day OF the bankers CONVENTION here
was devoted mainly to discussion OF
foreign trade problems and the means
Of granting international credits.
Officers elected for the ensuing year
. we're: Thomas B. McAdams, first vice
President of the American Bankers
j Association and president of the Mer-
chants National Bank OF Richmond,
/, president; John II. Puelicher, second
vice-president of the association and
president of the Marshall e. llsley
Bank of Milwaukee, first vice-presi-
dent; Walter w. Head, president of
the Omaha National Bank, second
e-president.
1t is expected that the next conven-
tion will be held in Richmond, Va.
Thus far sessions have proceeded in
highly conventional manner, marked
by the presentation of able papers on
timely topics. There have been no
contests, and debate has been conspicu-
Gus by its absence.
At the morning session President
John S. Drum announced that the mat
ter Of national banks recommending
that steps be taken to permit of the
establishment of branches, or any de-
bate from the state bankers on the
subject, could not come up for dis
q cussion at the general session, as
the constitution permits such debate
? only a the sectional meetings. 1t is
felt that the matter will be dropped for
. the time being.
Ter Meulen Bond Plan
Much interest has been manifest in
the Ter Meulen bond scheme for the
relief of war-torn nations. 1t was out
lined in an address by Sir D. Drum
mond Fraser, K. B. E., organizer Of
the plan.
Sir Drummond emphasized the fol-
lowing. points: One, that it will restore
normal oversee trading. Two, it will
reawaken the dormant confidence in
the ability of importers in war-stricken
countries to pay their way. Three,
governments may keep expenditure
. with their revenue. Four. revenue
producing assets of borrowing coun-
tries may be mobilized for the pur-
chase of essential imports, which in
turn will restore the buying power of
those countries. Five, lending coun-
tries. of which the United States is
collateral bond, a safe outlet for ex-
ports. Six, the scheme does not at
tempt to stabilize exchanges These
were dislocated because war stocks
were replaced at excessive prices in
certain countries before the recovery
trade in these countries must be re-
stored to normal. When they have
been restored the exchanges will take
care of themselves
Sir Drummond Frazer, of London,
warned the bankers that restriction of
the credit of the European countries
means an inevitable shrinkage OF ex
ports from the United States or other
creditor nations and a continued stag
Io
To Finance Imports
Discussing the Ter Meulen plan, Sir
Drummond said in part: "The scheme
is designed to enable war-stricken
countries that possess approved ma
tional securities to finance essential
imports. e., goods which stimulate
the productivity of the country-by
giving them the power, through the
bond, to command the confidence which
will attract the necessary credit. The
scheme proposes the formation of an
international organization for the pro-
vision OF guarantees which, on the one
hand, will protect the autonomy of the
borrowing countries and, on the other
hand, Will offer adequate security for
lenders"
Francis ". Hirst, former editor of
"'The London Economist" in address
ing the delegates, spoke on the deficits,
debesed currencies and shattered credit
OF Europe. He went into lengthy re-
view OF the enormous issuance of paper
money throughout the world, and of
the necessity Of the evolution Of some
scheme, perhaps the Ter Meulen plan,
for extending aid to Europe and thus
revive international trade. Incidentally.
Mr. Hirst concluded with the remarks
that his confidential advices from
aoroad were that relations between
Treat Britain and Ireland were on the
threshold OF mutual adjustment, and
that ne hoped that Great Britain and
America would cooperate in aiding the
war-stricken world.
Says Europe Lacks Markets
An interesting address also was made
~ Frank 0. Watts, president Of the
trst National Bank of St. Louis. and
chairman of the American Finance
Group at the international Chamber of
commerce meeting in London last June.
sif. Watts spoke on "our part in the
words commerce." He said in part:
The countries of Europe whose in
oustral machine has reached the point
greatest stagnation, are Handicapped
not only by lack Of capital and ability
command raw materials, but by a
sni! greater handicap, a lack of mar
ke's IN which to dispose Of the goods
which they could produce. Not only
mus; the impoverished countries of Eu-
rope be supplied with goods. but credit
<iso must be advanced in order that
payment for the goods may be made ~
. tae consumers and the wheels Of in
auStfy get in motion"
Discsussing foreign exchange with
.sistion 10 .ts effect on foreign trade,
1ai. watts said, in part: ave still
Lar m1cn complaint regarding the
.nect .' of the present exchange situa-
.'oh Oh the American exporter The
sexantages that apparently accrue TO
sSsNain countries with regard to pro-
slcHon costs. as result Of the ex-
.ashse situation, are not ar important
often assumed. In ultimate analy-
PRODUCTION costs arc q price and
ssSsnhoe long remain abnormal, due to d
xsn or Tow rate Of exchange. 10
sAt'lcoiaf rate If exchange can per-
fts"snt'Y mold any advantage, gince in
~ lass analysis foreign trade must
an exchange Of equivalent values"
toe American Bankerg' AgBociation's
snaai bali war held at the Hotel Am
ssseSaof isst night. Prior 10 the ball
ni1nn' reception and arbsc,i ption
ps'tf of tne American Institute for
'nZ Was held al the same hotel
livestock, Meats, Provisionx
xv. h., res,erday. Year ago.
yy,.ms. ies lbs. .a7GoW $50 ;129omIe.ss