IMPORTANCE OF CREDIT

Taranaki Daily News, 29 August 1930, Page 9

IMPORTANCE OF CREDIT

FACILITIES FOR EXPORTERS. ADDRESS BY MR. C. M. CROFT. “Credit in Export Trade” was the subject of an address given by Mr. C. M. Croft, Canadian Trade Commissioner, at a luncheon meeting of the Auckland Creditemen’® Club. Letter of credit terms, which were insisted on by some exporting firms, made for the safety of the exporter, but did not help in the extension of trade, Mr. Croft said. Hence, exporters must seek the co-operation of some organise-, tion, and in this regard the banks and acceptance houses had a very important purpose to fulfil. Credit was essential to the extension of export trade, and various systems to facilitate the operation of it had been evolved in different countries. A number of economic and political factors entered into the matter, including the political stability of the country to which exports were made and the legal protection extended there to the shipper. Mr. Croft gave an outline of the banking and export credit systems of the countries principally concerned in foreign trade. In regard to Germany, he said, great strides had been made, but the basis of the system had really been obtained from Britain. The co-opera-tion of the German Government in providing assistance for exporters had helped the latter to a considerable extent.

The English banks would always occupy a very formidable position in the world of commerce. Like the mercantile marine, they had been of the utmost assistance to exporters. As regards the L’nitcd States of America, the passing of the Federal Reserve Act in 1*913 had been responsible for important developments. Prior to that time the banks had not been in a position to extend long term credits in the way desired by exporters. In France and Belgium the systems were not quite so efficient as those of Britain and Germany. Canada had no foreign trade banks in the strict sense of the term, but several, of its banks had fairly Extensive overseas connections. . -