MOBILIZING RESOURCES.
It has been suggested, therefore—and indeed it is said that the general principle of the scheme has been discussed by the directors of the Bank of International Settlements—that a large International Syndicate might be formed having for its object the encouraging of con- fidence on the part of holders of these large accumulations of credits. It is suggested that heads of some of the big industrial groups in the various countries might form a syndicate with a large capital, the syndicate to be composed of financial and commercial experts, and its work to consist in the investigation of loan proposals from Governments of various countries, or, perchance, from industrial enterprises in different countries. On being satisfied as to the objects for which the money was required and as regards the security offered, the syndicate would itself make the necessary advance and then would recover the money by a public issue, that issue, however, to consist of its own deben- tures, so that the purchasers of such debentures would have as their security the assets and credit of the syn- dicate, plus the security deposited by the borrowing country or industry. In this way it is thought the confidence of the investor, whether in Britain, France, America, or elsewhere, would be strengthened and that money would flow more freely to the centres where it was required for industrial and financial developments. The activities thus stimulated would, it is believed, react upon industry generally and in addition would tend to lessen the disequilibrium which exists at present in the distribution of gold and liquid resources.
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