Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1922-02-03
WANTS BANK OF NATIONS
Senator Hitchcock Has Plan to Cure
i World Troubles.

Senator Hitchcock Has Plan to Cure
" World Troubles.
= BY establishing an international
bank modelled upon the American Fed
Sral Reserve system this country can
save the world from its present discon-
tents and restore foreign trade and
prosperity, according to Gilbert NJ.
Hitchcock, senior Senator from Nebras-
la.
II The plan Of the bank Of nations" T"
as Senator Hitchcock described 1t in q
recent address, is fairly simple. II
would be capitalized, he said, at So
4oo, ,OOO, 900. The United States govern
f1ent would, subscribe for a majority Of
the stock or s1,soo,oOc,ooo; OF the re-
mainder $2O0,0OO,O0O would be offered
Individual American and European
banking houses and exporters and i'm
porters, 5000, 100000 to subscription by
the governments of the world, so far
as they are solvent.
Headquarters OF this largest COR
porate organization ever formed would
be in New York. but 1t would have
branches in all the great capitals and
agencies everywhere in the world. 1t
would receive deposits, have power 10
issue currency. buy and sell exchange,
lend to exporters and importers. and
discount acceptances in a manner
similar to that of the Federal Reserve
banking system OF this country.
The capital. he suggested, would be
paid one third in gold and the rest in
interest bearing bonds of the solvent
governments, those with sound bud
gets which, had reduced the expenses
Of armament. Stock subscriptions
would be effected by treaties.
The banks power to issue currency
would be limited by the provision that
ii must maintain q reserve Of 35 per
cent. The bank would thus have the
power to issue from $4,000, 100000 to
So, ,o0O, ,ooo, 600 in currency, he said, and
this would be known as the interna-
,tional dollar. .,...
S"This currency" he said, II expect
Will become the International medium
on exchange in place of gold. 1t will
result in the expansion OF international
credit and thus facilitate international
trade. The institution would become
the great clearing house for the pur-
chase and sale of exchange. Through
II all the transactions would run 1t
would be one institution with power
enough to stabilize the rate Of ex-
change. The fluctuations. instead OF
violent, would be seasonal and based
ON legitimate reasons. Gambling in in
tsrnational exchange would be stopped.
'"The bank would afford Facilities for
extending commercial credit. A firm
exporting cotton to Germany would be
able to sell. say 100000 worth OF cot
ton to German mill and give that
mill a reasonable time in which to
take that raw material and turn it in
to the finished product or put 1t in the
course Of such Transformation. When
that cotton left New York. with a draft
attached. to IT. the bank Of nations
would be able to state the rate of Ger
man exchange that the branch in Ger
many would charge. 1t would be able
to cash the draft Of the cotton ex-
porter and when the cotton arrived in
Germany the branch bank there would
be able to give to the cotton mill the
Reasonable length or time in payment
Of the draft upon deposit of the proper
security.
Business men in Germany would
have no difficulty In borrowing Of the
banks in Germany at reasonable rates
OF interest, and the cotton mill there in
good credit could secure from the
branch bank there a rec sonable credit
in pay for that cotton provided 1t
could make the branch bank secure
during that period. Similar conditions
would exist in the shipping of wheat or
copper or any other American prod
net ct."-Washington Herald.