New-York tribune., 1922-02-22

of a country in which "A gold reserve
national bank was located notified the
trustees that it desired TO have de-
livercd to it blocks of stock OF $l0.-
100000 or rultiples thereof, the trus-
tees would call in that amount of Class
a. stock by lot The amount OF stock
which any government might ask to
have SOLD to it or It's citizens in this
way may not be greater percentage
of all Glass "A" stock thnn the ratio
of the capital Of the gold reserve ma
tional bank located in the country in
question TO total capital of the gold
reserve bank Of the United States of
Europe.
Whenever Is per cent Of the Class
a. stock has been converted into class
"B' stock the provision regarding the
five American trustees and the pro
vision regarding tho approval of new
trustees by a majority Of the individual
members of the Federal Reserve Board
Of the United States should lapse
It is the aim Of THE plan to create
an organization which could not be
controlled by the financial interests
owning the stock and so insure that
there would be no contest between dif.
ferent governments or nationals to ac-
Qure stock for the purpose of inhucnc-
serve bank of the United States of
Europe,
1t might be provided that the charter
could be amended after quarters
Of the Glass a. stock had been con-
verted into Glass "B" stock, provided
that three quarters Of the stockholders
united on program for some new
plan OF management.
Circulating Notes To Be
Redccmable on Demand
The circulating notes Of the gold
reserve bank of the United States of
Europe should under normal condi-
tons, be redecmablc on demand in
gold. For the purpose Of redemption
there must always be on hand a gold
cover of at least 90 per cent
1t is obvious, however, that in the
present state of universal distrust Of
all forms of paper money any financial
institution issuing circulating notes
and offering at once to redeem them
in gold coin might find that its gold
reserve was withdrawn as rapidly as
the notes were put out. Any plan of
the character proposed here could not
work in q community which used the
notes to draw out the gold and then
boarded the gold
If the Withdrawal and boarding of
gold should continue to such degree
that it impaired the usefulness Of the
bank the trustees should have the
power for the time being to suspend
the redemption of the notes in gold.
they should also permanently have the
power Of suspension in the event OF
var or other great crises.
The suggestion has been made that
an international economic conference
should be called, in which all interested
nations should participate. to discuss
the situation. 1t is hoped that such
an international conference might
serve useful purpose by giving its
and prestige to some particu-
lar plan for rehabilitation of the cur
rencles OF number of European ma
tions.
1t is not reasonable to expect that
America will take the initiative in
bringing large amount Of capital to-
eether and proposing a definite pro-
gram tor its use in creating q new
currency for Central Europe, but [
think it is reasonable to anticipate
that a project could be agreed upon
which would offer security for the in
vestment and sufficient promise of
profit to draw to it an adequate amount
of American capital.
Copyright. 1922. by Harcourt. Brace G. Co.
published by arrangement with the Nc
Clure Newspaper Syndicate)