Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-07-02
PLEASED WITH
RECEPTION OF
CREDIT SCHEME
Organizer Of Scheme Sees
Only One Obstacle it
May Meet. ,

London, June 15.-(MaM)-Ar
Drummond Drummond-Fraser, organ
izer Of the International credits
scheme OF the League of Nations, il
immensely pleased with the reception
1t has met In Austria. He says he can
see only one serious obstacle to the
successful application Of the scheme
to- all the countries now in financial
difficulties and that is q psychological
one.
The trouble" he said, when re-
Gently interviewed, SIS that the coun-
tries are so unwilling to admit that
they need International financial as
s1stance. They seem to feel towards
it much as individuals do 'poor-law'
relief. 1t hurts their national pride
to admit that they ar impoverished
by the war. OF course" he added, IF
we can make the great success of the
rehabilitation Of Austria which I be-
lieve we shall make, it will be differ
ent. People will then see a country
which has been brought to the lowest
depths Of bankruptcy gradually be-
coming prosperous and contented
again as the result of our bringing its
internal position to the condition in
which the international credits scheme
can be applied. They will see the
currency stabilized and that is one OF
LIle u1OSt l1lpOI CdnL 1dCtOIS III COIluoC-
ton with credit and trade.
Credit No Good.
TT may sound paradoxical," he con.
tinued, "in talking about a country ir
the position Of Austria, to say thai
credit is sometimes not worth having
But that has been exactly the cas-
TRAN exchange. To my persona
knowledge there are traders In Aus.
tria at this moment who have beer
offered credit-this: was before thu
proposals Of the international credi
scheme were put forward-and simpl!
dared not take the risk Of accepting
! because they did not know what tn
exchange was going to do next.
I'm my short stay Of three month,
a f~luctqation took place which woult
inevitably have ~bankrupted anybod.
who had tried to do business on
large scale. On the day Of my arrfva
I cashed a check and got $500 krone,
to the pound. Before I left I cashe.
another check and the rate was 2,12,
kronen to the pound. The interna
tional credit scheme will put a stol
to this fluctuation and to the issu
of unlimited paper money. Whether O.
not it can be brought back later t
the pre-war parity is a secondary mat
C6I. Inc really Important Ll1LS 10 L
stop it from f1uctuating."
May Aid Turks.
Questioned about further develop
rnents of the scheme, he c%onsidere'
that 1t might be e~ficacious in settin
Turkish finance on Its feet again an
that 1t might we'll be employed b
Greece, Bulgaria and Rumania an
possibly later by Poland.
AS far as the great powers Are con
cerned he considered that the schen
was principally Of importance t
America, France and ourselves
America" he said, SIS now maxim
a great feature Of misrepresentation
To succeed with this policy she re
quires unlimited markets. As, for our
selves" he continued. our Europea
trade has always been enormous, es
pecially ihthe Near Eastern countries
and their markets are now completed
cut off. Previous to the war our Ell
{ ropean trade amounted to 200, 100000
pounds q year (pre-war values.) TIC
day, however, just because centrs
!, and eastern Europe are unable to blu
from us, this enormous volume {
! trade Is for the moment lost. tn
. international credits scheme, howeve!
!, gives us h opportunity Of gettin
1t back. by esta blishing a system {
credit for the purchase Of essential,
free from initiation and secured b
assets of a gold value with a regula
revenue. mores than sufficient to pa
the Interest and sinking fund" !