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for the benefit of cotton shippers unless dollars are
already available in the Cotton Shippers Exchange Fund.
In other words, should the Export-Import Bank find it impossible 
to sell the reichsmarks even at the low dollar
price of $.2382, cotton shippers would find it impossible
to get payment in terms of American money.
 
 
2. The Purpose of the Plan.
 
 
From the American standpoint, the plan is designed
to facilitate the export of cotton to Germany. The argument 
is made by Germany that she cannot continue to buy cotton 
from the United States unless she can find the necessary 
dollar exchange through exports to the United States. From 
the German standpoint, the plan is designed to facilitate 
German exports by means of a device which, in effect, 
subsidizes German exports to the United States.
 
 
Germany has hitherto sought to stimulate German
exports by means of the discount on the various varieties 
of blocked marks. Foreign holders of German securities have, 
in effect, been called upon to subsidize German exports 
through the device of thediscount on blocked marks, and also 
through the profits realized from the purchase of German 
securities in foreign countries at a discount.
 
 
There has been some discussion of a general plan
to tax all German importers and use the funds so derived
to subsidize directly German exports. The proposed plan
 
 
is