South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-02-22
SEN. HITCHCOCK
DISCUSSES BANK
OF NATIONS BILL
Nebraska Scion Outlines Plan
In Address at Knife and
Fork Club.
300 MEMBERS ATTEND
Norman Angel and Ralph
Bingham Other Speakers
on Brilliant Program.

In one OF the most brilliant pro-
grams Of the Knife and Fork club
season. wherein Sen. Gilbert NJ.
Hitchcock, Nebraska, Norman An
geu. pubhclst and economist Lon
don. England. and Ralph Bingham,
humorist, OF Philadelphia. were the
speakers. more than 800 members
listened 20 world thinkers and lead
ers discuss various phases Of inter-
national problems. Frank T.. Herring
presided as POSTMASTER.
AIR. Angel discussed the Human
Nature in international Relations,
while Sen. Hitchcock talked on his
proposed Bank of Nations" plan.
Sen. Hitchcock in discussing his
bank OF nations plan said he believ-
Ell, II adopted lt would restore for
eign trade. which in turn will bring
about the resumption of industry in
this country.
His bill proposes the establishment
Of a giant corporation with a capital
OF $2,40O.OG0.O 1000. The secretary Of
the treasury on behalf of the
American government, would sub
scribe 90 $1,000. 100000 OF the total
capital. $2O00CGO0O would be sold
10 banks and bankers, Importers and
exporters. and the remaL1ing $500
600. 900 would be offered 10 the lead
ing nations of the world, which. 10
become stockholders. would have TO
make treaty arrangements with the
United States.
One-third of the capital ss!5scrib-
ed by each nation or stCckholder Ia
10 be paid i'm gold and the two
thirds remaining may be paid in in
terest-bearing bonds of solvent gov
ernments sen. Hitchcock described
solvent government as one that
makes due provision for all Its ex-
ternal claims. maintains a balanced
budget and enters into an arma-
meut reduction Tor the purpose OF
assuring It's solveucy
To Finance International Trade.
The speaker said the business Of
the bank is TO be the financing OF
international commerce by the pur-
chase and sale OF bills of exchange
the lending of money 90 exporters
and importers and il may also in
clude the purchase and sale of gov
eminent securities Of those nations
owning stock i'm the bank.
Likeuing his plan 90 the federal
reserve system of the United States,
or that Of the various clearinghouse
organizations of the country. Sen.
Hitchcock described how the pro-
posed Bank Of Nations would work,
by acting as a great clearing house
for the purchase and sale of bills of
exchange. thereby liquidating a large
proportion OF the transactions Of in
teruauonal commerce.
Taking as hts point the sale OF
100000 of cotton by southern grow
ers to- German mill, he said the
German cotton mill could obtain
from the branch bank in Germany
a reasonable credit 90 buy cotton,
provided lt could make the branch
bank secure during that period.
Similar conditions would exist IN the
shipping of wheat or copper of any
other American product. Banks IN
the interior of the country, where
those raw materials are produced
would be able To cash or credit the
drafts of shippers on telegraphic ad-
vices from the bankers in New York
and those drafts would go forward
with shipments. The interior bank
selling the draft 90 the Bank of Ma
tons I'm New York. and the Bank OF
Nations fin New York forwarding the
draft with the shipment TO the
branch bank iu the country TO which
the shipment was 20 so.
Shipments between other Coun-
tries would be handled i'm Ike man
uer
An international system OF credit
Isl the ideal in which Sen. Hitchcock
purposes 20 have the United states
assume the role OF leader This
country. he said. can become the
leader OF such a movement. and the
other nations due so their present
financial conditions. VIII be only too
g.ad 20 become minority members
Relief for American Exports.
Sen Hitchcock said his idea -
that the international field is un-
occupied so far as banking aud cur
rcncv and a system Of credit super
ylsed by government are concerned.
Intu that field is occupied. ne de-
cIarcd. our foreign business viii be
az a great disadvantage. This condi-
ton cannot be remedied. and IL will
not be. unless the United States
takes the lead In providing a system
% credit. ne said.
"A great bank in New York re
Gently made a settlement with the
Clearing House there at the end Of
The DAYS business by drawing its
check for forty eeven cents" he
said. and yet the Clearing House
had against 20 checks totaling mil
lions or dollars and II had against
he Clearing House checks against
various banks Eggregating a like
amount.
and so IL Is in international
trade Il has been estimated that,
II you take all the exports and all