LOANS TO FINANCE ALLIED TRADE

Dominion, Volume 12, Issue 272, 13 August 1919, Page 2

LOANS TO FINANCE ALLIED TRADE

$ BRITISH BANKS' PLAN. A scheme is receiving favourable consideration by tho British banks (savs tho "Daily Mail") whereby a loan will bo raised to render financial assistance to j the, devastated districts of France and j Belgium, and also to the industry of | Italy, and possibly other smaller countries injured by the war. \ Tho proposal is that tho bankers of England, tho United States, and of certain other European countries that havo not been directly injured by the warsuch as Scandinavia, the Netherlands, and Spain—shall help those of the Allies that havo. The idea emanates from American sources, a leading American banker being at present in this country discussing it, and importaut conferences of bankers hero an) being held. It is proposed to form an international consortium of the bankers of the coun-tries-just mentioned in a position to lend, and that this consortium shall appoint a commission to decido by inquiry into the affairs of the devastated districts as to where, how, and when the money can.best be lent. The commission would report and recommend to tho bankers' consortium. The present incomplete suggestion is that the money subscribed by the public at the invitation of the banks should be at a rato of interest ranging between G and 8 per cent., probably about 7 per cent; ' " ' .•. Another suggestion being made in the city, much less discussed and having reached no tangible form, is that the British Government should raise a loan of, say, ,£50,000,000 with which to buy necessities in this country to resuscitate tho industries of such stricken countries in Eastern Europe as Serbia, Rumania, Poland, and the Czecho-Slovaks. It is pointed / out that while tho peoples of those countries are standing star--1115 at their factories with their macluneay motionless and their chimneys smokeless, because of their lack of material, wo in this country are waiting to sii|)|)ly the material. Tho peoples cannot buy the necessaries, because their currency is unacceptable and their individual credit is bad. They need tho help of a British guarantee. Suppose they wero allocated about .£10,000,000 each from a loan to be raised by the Government here, the money would bo spent for them under tho supervision of a commission, and British workmen would make tho necessaries thus bought. It -would not bo spent in Bond Street;or on armaments, but on actual necessaries for resuscitation; The Government might, of corn-so, run somo risk of loss, it is admitted, biit this would not be great seeing that it would bo spread over four or live countries. The money would probably come back in one, two, or three years. In any case, it would be better,-it is contended, to run- the risk of some loss than to indulge in tho absolute loss of an addition to the £11,000,000 which" has already been incurred by paying he unemployed for doing nothing while the stricken countries are gasping for our output. ,