LEAGUE BILLS OF EXCHANGE.
[To the Editor of the SPECTATOR.] SIR,—It is just one year since you were good enough to publish a suggestion of mine that Bills of Exchange be issued by the League of Nations to any State anxious to trade but unable to do so on account of a depreciated currency. The proposal allowed for the said Bills to depreciate annually, say per cent. for each month, and,thus depreciated, to be accepted as legal tender for a period, the idea being that at the close of that period the League would redeem in gold the Bill of Exchange at 25 per cent. of its original value, which amount would be deposited in gold or its equivalent by the borrowing State and be its only liability. It was contended that, if carried out, the scheme would prove of enormous advantage to the State to whom the advance was originally made and would also stimulate trade, as no one would want to keep a depreciating security bearing no interest for longer than could be helped. Further, that the Bill of Exchange would be in such constant use that the small monthly loss would be spread over more than one commercial transaction, and, being fixed, could be discounted. With the editor's permission I would once more put forward the proposal, as, with the survival of the League—and its chances of life are certainly greater than they were even a year ago—there would appear to be nothing to prevent the scheme proving a success.—I am, Sir, &c.,
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