Sir Robert Home divided his new credit scheme into two
parts. The first dealt with export trade risks on approved security. For these risks the Government would " guarantee," but would not " advance," 85 per cent. of the value of the goods. By this plan the exporter could carry on his business through his banker in the ordinary way. The second part of the scheme dealt with uncovered risks. For these risks the Government would guar- antee 50 per cent. of the uncovered balance if the foreign importer accepted the other half of the risk. As for transactions entered into by bankers, the Government would guarantee up to 70 per cent. All this will not, of course, satisfy those who want the State to do everything. But it is good that there is plenty of room for private Companies of Merchant Venturers who we hope will now come forward.
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