The Cordova daily times., 1921-08-17
BANK OF NATIONS ASPANACEA FOR INTERNATIONAL FINANCIAL
 ULSEPROPOSED BY SENATOR

need of these products and are not able to buy them"
 Two causes may be given, in Hitchcock's judgment. for these con- ditions more than any others:
 1-The unstable condition of inter national exchange, which has fluc- tuated so violently during the last two years that it has made exporting and importing dangerous gamble and has ruined hundreds of firms attempting international commerce. ?. The exhaustion of international credit due to the enormous balance of trade which was not paid for in gold. Attempts by private concerns to supply the credit have only re. 1 suited in the exhaustion of their re sources.
 Hitchcock believes that such condi- tions can be remedied by the estab- lishment of an entirely new interna- tional agency to stabilize interna- tional exchange and to foster an international credit system
 "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 credit. or of the world" Hitchcock said, no effort to restore commerce, to stabilize exchange and to establish credit can be made unless the United States takes the lead.
 "I therefore propose the Bank of Nations. I would give the United States the controlling interest in it. would have $500 100000 of it's stock taken over by the United States and $2OO.OOO,OOO more sold | to American banks and bankers, ex- porters and importers interested in foreign commerce, and the remain ing $9OO,OOOOOO sold to foreign gov ernments.
 "The Bank of Nations would be large enough and powerful enough to put an end to the pirated spec. ulation which has been going on in international exchange and which has made commerce next to impossible. It would also be powerful enough to establish a legitimate interna- ! 41 between the nations, particularly with respect to great exportabie sur plus products of the Uaited States to Europe.
 ITO give the bank power to be used in discounting bills of ex. change, buying and selling govern. ment securities, including treasury certificates, and making loans to exporters and importers. would empower it to issue it's own banl; notes. or currency, protected by an adequate reserve of gold and gov. ernment bonds.
 This power to issue currency would develop an enormous possi bility of credit. and l believe this currency, which would be on a gold basis would soon be in strong demand for use in other countries and for international shipment. IT other words, the great store ot gold in the United States-one-halI of all the gold available in the en tire world-would not be diminished but would remain largely here while the currency of the bank would be used to facilitate internationa commerce.
 "Other nations are struggling des perately to keep enough gold within their borders to make a respectable cover for their currency. The Bank of Nations would make it possible to use this gold as basis for ar international currency which could be used in international commerce and for it's facilitation.
 We have in this country abundant credit facilities, but internationa commerce practically has none. The bank I propose would create a sys tenn of international credit and would be able to extend this credit over a years time. so that the raw ma terials purchased from the United States would be made into the fin ished product and sent to the mar kets before the maturity of the pa per which was created at the time the products were exported"
 Joins His Brethren in
 City of Silent Men | fny Tn Taua Carylca