Barter Bonds

Thirty-five foreign nations have passed restrictive legislation on currency exchange with Great Britain. Brightly last week the London Chamber of Commerce suggested that if it is impossible to trade in cash it would be better to go back to barter than not trade at all. To speed the swapping, they suggested the establishment of "barter bonds," to be issued by each of the nations wishing to trade with Britain. The respective central banks would fix their own internal par value of such bonds in each case and they would be used instead of cash to pay for goods.

Barter bonds, pointed out the L. C. C.. would automatically balance trade because excess of sales by one country would immediately cause an accumulation of bonds which could only be liquidated by more purchases from the other country.

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