Evening star., 1948-12-26

trifle over 100000 lnhabltantS.
be measured by extent OF territory
In Europe's very heart yet rising
above its chronic quarrels through
a traditional dedication to unswerv-
ing neutrality, Switzerland has not
only escaped the ravages of war but
is also a recognizedly impartial pro-
moter of European reconstruction.
As such, it should be regarded as a
valued co-operator with the United
States In our own efforts toward the
same end. Indeed, Switzerland has
already done, and continues to do
effective work in this field. And it
has accomplished this by the wise
utilization of relatively modest eco
nomic strength.
In part, these accomplishments
are due to general recognition OF
Swiss ability and impartiality, plus
long experience in financial mat
tiers. Swiss bankers and banking
methods have for centuries had an
enviable reputation. 1t is enough
to recall that it was Genevese
banker. Necker, who was called in
by the decadent Bourbon monarchy
to recorder its chaotic finances on
the eve of the French Revolution.
Necker's eleventh-hour attempt
failed largely because his wise pre-
scription was disregarded. Today
the big Swiss banks have interna-
tional importance as investment
counselors and managers OF capital
from many lands, which find In
them a safe haven in disordered
world. This financial acumen is
likewise responsible for the wise
investment of Swiss capital abroad,
Switzerland being a creditor nation
on a worldwide scale. And returns
from those broadly based foreign
investments is one of the major
factors in Switzerland's economic
stability.
Currency Stable
This stability is best attested by
the strength of its currency. The
Swiss franc is most emphaticaly
hard" money; possibly a trifie
harder even than the American
dollar. 1t is certainly priced as
much as the dollar by all who want
to possess sound currencies. For
this reason. Switzerland has no need
to join the chase after the dollar.
It has all the dollars it needs to
meet it's dollar obligations. Indeed,
the American dollar in Switzerland
stands at a slight discount to the
franc. This is shown by the fact
that. while the official rate is 4.3l
francs to the dollar, it is exchanged
on the free market at only 3.95
francs. Incidentally, 1t should be
remarked that, unlike the United
States, Switzerland maintains free
market in gold, while its currency
has a gold coverage of virtually 100
per cent.
1t is against this enviable back
ground that Switzerland's position,
activities and prospects in contem-
porary Europe can best be evaluated.
Switzerland's economic setup pre-
disposes it to do its utmost for the
promotion of European recovery. A
country with few natural resources,
Swiss economic life is based on the
export of high-grade goods in return
for the foodstuffs and raw materials
which it must have in exchange, but
in an impoverished Europe, necessi-
ties come before comforts or lux
uries. So necessities will be imported
ahead of Swiss products such as
watches, precision instruments, fine
textiles, milk chocolate, cheese and
other Swiss specialties. This is cer-
tainly true of countries with soft
currencies, which must limit its i'm
ports to things vitally needed and
obtainabie only in terms of hard
currencies like the Swiss franc and
the dollar. The only way at least
partially to obviate this financial
impasse is for the hard-currency
exporters to advance credits or ex-
pend grants in order to prime the
economic pump and get interna-
tional trade moving again.
Has Own Marshall Plan
We Americans nave done this on
an enormous scale through our va
rious relief and recovery measures
eliminating in the Marshall Plan.
But it is interesting to observe that,
within its relatively modest capacity,
Switzerland has been doing similar
things, amounting to Little Mar
shall Plan" of its own. This pro-
gram was started shortly after the
close of the late war, taking various
forms. For one thing series of
trade agreements have been con-
cluded with virtually all countries OF
the European continent, on both
sides of the Iron curtain" Those
agreements, providing for steadily
increased exchange of goods, would
not have been possible without sub
stantial exchange of goods, would
not have been possible without SUBJ
stantiaI Swiss credits aggregating
nearly 2,5Oo, ,0O0, 900 francs, much OF
this being on a long-term and con-
tingent basis, which puts them in a
potentially grant" category unless
general recovery is accomplished.
Outright Grants
In addition to the credits extend
ed under this reciprocal trade pro-
gram, outright grants amounting to