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Hokitika Guardian, 9 January 1928, Page 2

TrrF.nv. is no doubt that in these postwar days the problem of giving credit to purchasers overseas has become a very acute one among British manufiw&jrpj*, fine} tbfit in many instances

credit pays ail equally important part with price in the fight for orders in the overseas markets. Cases in which the placing of the order has been conditional upon the grunting ol fairly long term credits aie frequently met with, and the exporter occasionally finds himself not in a position to grant these terms. In other instances orders which might he obtained irom foreign markets involve a larger risk ol bail debts than firms quite justifiably can* to carry uncovered by any form of in■Urniico. It was the recognition of the need for increased facilities in cases if this kind, says a London Financial Journal, that led the Department ol Iversons Trade (Britain) some two •cars ago. to appoint an export cotnnittee, and it has been upon the recommendations of this committee supi)lee 11 ted bv the active co-operation of Chambers of Commerce up and down the country that the Department lias now produced its new ‘‘Moating Contract.’.’. Under this contract the Government insures exporters against bad debts by taking up to 75 per cent. ■ i the credit risk. The contract is. draff■d in simple language, and is framed to help the exporter without encouraging unsound trade or exposing the D ■- uartment to undue risk. It is understood that a large number of these contracts are already in operation, and that the scheme has been found to bo an improvement upon anything that lias heretofore been available lo exporters. Tf is possible that so far as particular trades are concerned certain clauses of tlie model contract as now adopted b.v the Department may not quite harmonise with the usual practice or custom of the trade, but the Department has expressed its willingness to consider carol ally all applications that are submitted to it. and to examine any representations that are roc 1 veil as to the actual form of contract. There a,re. of course, certain general conditions which must be olv-,-erved if this Government guarantee is to be secured. 1 11 the first place it is a fundamental condition that goods to be covered by the scheme be wholly or partially produced or manufactured in the United Kingdom. Secondly, the Department's assistance is limited to transactions which are dealt with on the basis of hills of exchange. Finally, the insurance must lie arranged before the goods are actually shipped.