The New York herald., 1921-07-04
DOLLAR CURRENCY
FOR WORLD PLANNED
Hitchcock Explains Propos-
81 for Bank of Nations I'm
der U. S. Control.
TO REVIVE COMMERCE
His Bill Suggests 1t Be LO-
Gated Here With Capital
of S2.4OO, 100000.
CREDIT SYSTEM NEEDED
Institution Should Have Pow
er to Issue International
Money, Senator Says.
TO REVIVE COMMERCE
CREDIT SYSTEM NEEDED

Special Despatch TO THE New YORK HERALD.
New York Herald Bureau.
Washington, ID. O.. July 3.
Nothing less than a united effort by
the solvent nations of the world TO es-
tablish bank OF nations, controlled by
the United States, can afford the neces-
sary banking and currency facilities
to restore world commerce and finance
IT. according to the statement made to
TaE New YORK HERALD to-day by Sena-
tor Hitchcock (Neb).
He has introduced bill to establish
this bank. proposing that it have a
capital Of s2,400, 900 900 with power to
issue International currency; that 1t
be located in New York, and that other
nations may become stockholders
through negotiations of treaties Sena-
tor Hitchcock intends to stir UP in
terest in the proposal in every possi-
BILE way. not only in Government circles
but by conference and correspondence
with financial leaders.
"Thisis undoubtedly the only time in the
history OF the world" Senator Hitchcock
said. when to any nation the control of
such an institution would be conceded,
but as the United States has become the
creditor nation of the world and as 1t
has one-half OF the gold of the world. it's
aid is absolutely necessary to reestablish
the commerce OF the world. There are
reasons to believe that other nations
would accord to the United States not
only the leadership but the control of
the bank.
American Contribution.
AS far as the United States is con-
cerned IL would be an easy matter IN
spare s300,000.00O to $4OO. 900. 600 in
gold as a contribution to the capital of
he bank, and 1t has more than enough
ponds OF other nations to make up the
rest OF its subscription. / believe other
nations and importers would subscribe
Tor the remainder Of the stock only one
third OF which must be paid in gold'
The necessity for some such institu-
ton. In Mr.. Hitchcock's opinion, is justi-
fled because OF the lack Of any credit
system in international commerce. the
fluctuation and instability in exchange
and the consequent collapse of COM
nlerce.
international commerce, which is the
great source of wealth. continued Sena-
tor Hitchcock, has been falling off rap
10y In the last year and particularly the
lat six months. and may be said now
tor be almost in collapse. The export
trade OF the United States is only about
half Of what it was a year ago.
"Two-thirds of the ships of our mer-
chant marine are idle and swinging at
x.okz@ t.
nous quantities of surplus products of
our factories and mines. which other
countries need but we cannot sell be-
cause those countries lack the means of
payment. This is due largely to the fact
that there Is no system of banking and
currency that affords the necessary
credit in the present demoralized condi-
tion OF the world.
More Gold Than Needed.
TN the United States we have as
much gold as all of the other nations
Of the world combined. and much more
than we need to afford basis of credit
in our domestic transactions. This gold
should be used as a basis for interna-
tional credit. In our National Treas
ury We have about ten thousand million
dollars of interest bearing bonds of
other countries which could be used as
a basis of credit, but OF which we are
making no use.
"One of the results In the United
States in the collapse of international
commerce has been the cutting down of
production. the closing of factories the
shutting down of mines, an immense pill
ing up of unmarketable products and the
throwing OF hundreds of thousands of
men out of work.
The Bank of Nations Is proposed as
q great international facility to supply
credit to commerce, TO stabilize exchange
and thus to restore to the United States
the markets of the world"
Senator Hitchcock said that with its
proposed capital of S2,400, ,000.00 It
tuition ever established. owned by ma
tions of the world. but controlled by the
Government of the United States.
"Only such Governments are to be ad-
mitted as stockholders as enter into
treaties with the United States for that
purpose" he continued. TT is provided
that the bank can receive deposits OF the
Governments exporters and importers
and banks interested in international
business. This probably would add sew
eral hundred million dollars to the avail
able resources Of the bank. Even then.
however, international commerce is so
the bank could not afford necessary
credit unless II be endowed with the
greatest power that bank can excr-
else. the power 10 issue its own notes as
currency.
This currency might be known as the
International dollar. because IL would
be issued not only In the United States
but in any other country that had a
branch OF the Bank Of Nations. and IL
would be redeemablc not only in the
United States. but at every branch bank.
= would be Issued from tee to time
as required, and retired from time 20
time. as the need abated. Like our Fed
eral Reserve currency Il would be elas-
tic In character.
my judgment is that II would be
used all over the world and would put
an end TO international shipment OF
gold just as we have practically ceased
IN ahfn oold from one part of the United