New-York tribune., 1921-06-30
Bank of Nations
AS Finances Cure
Asked i'm Senate
Hitchcock Introduces Bill
Providing for 81, 400
900, 900 Institution With
II. 8. Chief as Stockholder
From, The rrioune's washsnoso,, Bureau

From The Tribuns's Washtn0to4 Bureau
WASHINGTON, June 20. - Senator
Hitchcock, of Nebraska, former Demo
cratic chairman of the Foreign Rela-
tions Committee, introduced in the Sen
ate to-day bill providing for the
Bank of Nations" the general pur-
pose of which is to stabilize exchange
and, put stop to speculation in ex-
change.
The bill provides for bank to be
chartered by Congress. to have a capi-
tai of So 2,400, 100000, the United States
government to have the controlling in
terest in it. Senator Hitchcock says the
bank will be great and powerful enough
to stop speculation in international ex-
change and establish a legitimate in
ternational credit to promote com
merce.
Senator Hitchcock viii send copies 70
Secretary Mellon, Secretary Hoover,
various bankers and authorities in this
country, and perhaps to some Of ths
financial authorities Of Europe. Tho
Committee of the Senate. After there
has been time to cause some public
discussion of the plan, Senator Hitch
cock hopes to have hearing before the
Banking Committee.
Decentralization of Business
In a statement, Senator Hitchcock
explains the bill and the purposes back
of it. He said:
every one recognizes that there
exists in the United States and other
nations at the present time great de-
moralization Of business, a high rate
of unemployment and general un-
profitable condition in all lines of
trade. international commerce is al
most in collapse. The United States
has enormous surplus supplies of prod
ucts which it is unable to sell, while
other nations have great need of the
products and are not able to buy.
1.-TWO causes may be given as more re-
sponsible for these conditions than any
others:
"First-The unstable condition of in
ternational exchange, which has fuctu-
ated 80 violently during the last two
years that it has made exporting and
importing a dangerous gamble and
ruined hundreds of firms attempting
international commerce.
"Second-The exhaustion of inter
national credit due to the enormous
balance of trade which was not paid
for in products and could not be paid
for IN gold. Attempts by private con-
Germs to supply this credit have only
resulted in the exhaustion of their re-
sources.
Would Stabilize Exchange
"These considerations lead me to
propose the establishment of an en-
tirely new international facility to sta
bilize international exchange and es-
tablish an international credit.
81 have called it The Bank of Ma
TONS
"Inasmuch as the United States now
holds more than one-half of all the
gold of the world, which it is not
using, and inasmuch as the United
States has become the great creditor Of
the world, no effort to restore COM
merce, to stabilize exchange and to es-
tablish credit can be made unless the
United States takes the lead.
"Of its capital stock l have provided
that one-third shall be paid in gold and
that not over two-thirds shall be paid
in the nterest-bearing bonds Of SOL
ven* nations. I define solvent nations
as those who keep their external obli-
eaticns, make their budgets balance
anG adopt policy of armament reduc-
tion and curtailnent of army and navy
expenditures.
"To give this bank power to be used
ill discounting bills of exchange, buy
ing and selling government securities,
including treasury certificates, and
making loans to exporters and import
ers, l would give it the power to issue
its own notes or bank currency, pro-
tected by an adequate reserve of gold
aod yoyp rnrnept bonds -