New-York tribune., 1921-11-13
Would Have Billion Dollar Cap
ital to Start With; Not Panacea,
u. S. Banker Admits

paid to the Gold Reserve Bank Of the
United States Of Europe upon the
stock Of the gold reserve national
bank held by It. Three-quarters OF
the remaining earnings should be al
lowed to accumulate as a surplus until
the surplus amounts to 20 per cent of
the capital of the gold reserve na-
tionaI bank, after which one-fourth
would continue TO be accumulated as
surplus and one-half would be paid to
the government Of the country in
which the bank is located in lieu of all
taxes Of every description upon the
bank or its circulation. When the sur
plus of the gold reserve national
bank reaches so per cent Of its capital
the full three-quarters Of the earnings
above referred TO would go to the gov
ernment Of the country in which the
bank is located, SO long as the bank s
surplus is maintained unimpaired at so
per cent Of it's capital The remaining
one-quarter of the earnings, after the
regular dividend Of 8 per cent has been
paid upon the stock, would be declared
as extra dividend and be paid TO the
Gold Reserve Bank Of the United
States Of Europe.
20. All stockholders Of the Gold Re-
serve Bank of the United States Of
Europe would be paid regular divi-
dend Of per cent IL earned, and in
in the aggregate to the total extra
dividends received from the several
gold reserve national banks. All the
expenses of administration Of the Gold
Reserve Bank of the United States Of
Europe. including the salaries Of the
trustees, the cost of printing and dis
trlbution, circulation, etc, would be
apportioned to the several gold re-
serve national banks and should be
paid by them as operating expenses.
Most From america
81. Presumptively the bulk OF the
initial subscriptions to the stock of
the Gold Reserve Bank OF the United
States of Europe will come from Amer
lea. 1t is not the design to perpetuate
the American participation nor control
beyond such time when the European
nations are financially reconstructed
and when they may desire to have the
stock owned either by their govern
ments or their nationals. It would
be provided, therefore, that ali stock
initially subscribed for by Americans,
and known as Glass A stock, would
be callable by lot at 100. Whenever
the government of country in which
gold reserve national bank was
located notified the trustees that it
desired TO have delivered to it, or
through it to any of its citizens or
financial institutions who were pre-
pared to invest in stock, blocks of
stock Of s10,o00.0oo or multiples there
of the trustees would call by lot such
an amount, par value, of Class A
stock, and holders Of it should surren-
der it at s120 per share and accrued
dividends.
The Class A stock would have no
preference of any kind over the other
stock, but would be subject to the dis
ability that it may be called at 120
and reissued as Class B stock,
against which no such disability at
taches, Glass B stock not being call
able. The amount of stock which any
government might ask to have sold TO
it or its nationals in this way may not
be greater percentage of all Class
A stock than the ratio of the capi-
tai Of the gold reserve national bank
located in the country in question to the