Belgo-Dutch Statesmanship
Belgium and Holland have taken a wise step, and set a good example to other European States, in concluding an agreement to stabilise monetary relations between them. A permanent rate of exchange between. the Belgian franc and the Dutch florin has been agreed on, and arrangements are made by which each country will provide as much of the other's currency as its traders may require, accounts being balanced at the end of every month. The debtor country may clear its liabilities in gold or (by agreement) in foreign currencies, though no such liquidation is required until the adverse balance on paper reaches a substantial figure. It is obvious that the agreement will considerably stimulate trade between the two countries, one of which, Belgium, has a population of eight millions and the other of nine. That, however, is not the whole story. The extensive colonial possessions of both countries, notably the Dutch East Indies and the Belgian Congo, are covered by the agreement, and the possibility of the association of other countries with it is provided for. It is recognised, moreover, that the arrangement must take its place, if occasion arises, in a larger international currency plan. As between the two countries themselves the currency agree- ment can hardly fail to open the way for useful commercial and economic agreements. Altogether a valuable piece of constructive work has been carried through in the midst of the tumult of destruction.
Previous page
