CREDIT FOR CUSTOMERS

Evening Post, Volume CXIII, Issue 118, 20 May 1932, Page 6

CREDIT FOR CUSTOMERS

A new plan for financing trade is announced by. the city editor of the London Labour newspaper "Daily Herald." He says it is proposed to finance contracts with foreign firms by the issue of three months or six months bills "at about 3 per cent." instead of paying 5 per cent, for bank discounting of foreign trade bills— which latter method is preferred by the bankers. The plan—which at time of writing does not seem to have been commented on by the non-Lab-our Press—is interesting not only in itself,' but as illustrating the keen anxiety of the United Kingdom to restore purchasing power in those,who would buy if they had credit. In various forms the plan of lending in order that the borrower may buy is always,with us, but never more so than now. "The Times" has pointed out that by far the greater part of Germany's short-term debt to Britain was incurred in a legitimate attempt to facilitate trade; and the twicepostponed German payments illustrate the dangers of honest trade financing in a time of falling prices that increase the debtor's load. But The case put by the Labour paper is at any rate an attempt to give practical application, to easier money conditions, and can be classed as constructive advice, not merely a clam|our for printing of currency.