New-York tribune., 1922-02-22
By Frank A. VanderIip


was asked by practically every
finance minister OF Central Europe tt
make some suggestion for creating &
starting point at least from which they
could get back to sane currency sit
uation. II was not until after | hac
visited nearly every country in Europe
and had realized the similarity of the
difficulties that most of these govern
ments are facing that formulated s
tentative plan which might meet the
situation.
Whether this plan proves to be gen
rally acceptable or not, have good
zeal OF confidence in stating that any
proposal that is successful in avert
ing the complete wreck of currencies
in number Of nations must be formu-
lated in the light of the two principles
have laid down:
First That in the present situa-
ton there is nothing curative at
work, that the disease is progress
sive one. and that there must be
outside help
Second That currency must be
created that cannot be deprecated
ernment printing press.
am familiar with and profoundly
believe in the principles Of the Ameri-
can Federal Reserve banking system.
IT was not unnatural that in rejecting
on the means Of rescuing these ma
tons from further financial collapse
should consider the application Of
principles which have proved so eff
cacious in our own financial life.
was especially invited to present
rny suggestion TO the Porta Rosa Con-
ference, conference Of the so-called
succession states of the old Hapsburg
empire, which met at Porta Rosa, Italy.
How His International
BanI. Plan Would Work
The proposal was the organization
of a banking corporation with paid
n capital of gold. This bank might be
organized as a "super-corporation"-
that is to say, it would possibly be
better If it were not organized under
the laws Of any particular country. It's
corporate existence might be created
through the League of Nations or
through some other international BODY.
The suggested capital of $1,000 OO0,-
600 would be necessary only when the
new organization operated in most of
the European states. At the start the
capital would be much smaller. The
stock would be divided into shares Of
800 each. Subscription to these shares
would be open to any one able to sub
scribe and pay in gold.
AS America at the present time holds
the predominating stock of free cold
It is presumaole that the bulk of the
initial subscriptions would come from
that country. 1t is not proposed, how
ever, that the stock should be perma-
nently lodged in America and provi-
sions are made under which all of it
might in the future be purchased bv
Europeans.
With that in view. the stock would
be issued in two classes. The stock
subscribed for by Americans would be
designated stock "a" That subscribed
for by Europeans would be designated
stock "B." The two classes Of stocks
would be identical in all respects ex-
cept that Class a. stock would be
subject TO retirement by call at say
100.
America Would Have
Five of Nine Trustees
The affairs Of the corporation would
be controlled by court composed of
nine trustees, who would be named in
these to be Americans and four to be
Europeans There would also be nine
alternate trustees, similarly divided be-
tween America and Europe, any one of
whom might act in the absence or dis
ability of any trustees
Inc aim would be to form this board
of trustees of men Of the very highest
character and widest financial expe
rience; men who would rise above ma
honat selfshness and from whom
might be expected devotion to the
genera financial rehabilitation of Eu-
rope. They would hold the position for
life or until reaching an are limit
They would have to free themselves
from other financial connections. In
the event of their designations. they
shouid agree not to engage in any
banking or financial business until
alter an interval Of FIVE years.
Vacancies in the board Of trustees
would be filled co-optively, that is. the
remaining trustees would elect a new
trustee but no new trustee should be
erected who was not approved by
majority of the individual members of
irgton.
The trustees should elect = covernor
general and deputy governor general
from among their members Tbs
governor general would preside at
their meetings and perform such duties
as the executive head of the organiza-
1lon' as the trustees might designate.
ne governor general should be
citizen of the United States until the
cnarter has been amended. which NAV
take place when 10 per cent of class
Z stock has been converted into class
B stock. w 0'''''
Each Nation Would Have
Branch Bank of Its Own
IN each of those European nations
"nlch invite the establishment of
oIahch % OF the Gold Reserve Bank of