The Washington times., 1929-07-06
WOULD AID
PEACE AND
TRADE

A hundred billion dollar
world bank, looming as fl
nancial Rock Of Gibraltar
against all existing financial
institutions, may grow out Of
the Treasury set up by the
Allied Reparations Commission
for exchanging German repara-,
tions payments, it was inti-
mated here today.
Already hinted at by Thomas P.
Lamont. international financier and
reparations expert. Senator William
II. King CD of Utah, today recon-
mended the project as certain to
promote world trade and interna.
tionaI peace. He said the benefits
OF such a gigantic world financial
institution would be fabulous and
that the. United States would reap
the greatest rewards because of her
tremendous international commerce.
World Peace Factor
The present international bank,
tlIst established by the Reparations
Commission, viii receive funds from
Germany in foreign exchange and IN
currency and make distributions 10
the creditor allied nations. Lamont
already has hinted that this instl-
tuition can develop into real Worlo
bank.
.rf. in years to come" said La
mont, .'it takes on broader functions
II will be because there is prac-
tical and specific use Tor It In
branches OF economic life which are
not now served
King endorsed the world bank
idea, as certain to promote trade
expansion throughout the world
and thereby, to promote peaceLul
relations between nations. he
pointed out that where the peoples
Of two nations have peaceful ana
Intimate business relations, war
seldom intrudes.
The possibilities Of such a world
hank almost stagger the imaglna'
ton. For one thing, such an insti-
tution would act as a clearing
house for all the worlds commerce.
In 1928, world trade probably
reached the stupendous total OF
$67, 600, 900 900. In 10 years. il the
current annual growth of five per
cent is continued, the total trade
will reach 100000, 900 900.
u. s. Benefits Great
The interest of American industry
and American bankers in such an
institution can be appreciated by |
the fact that the United States did
q $9,e00,0o0 volume of business with
other nations last year. Within a
few years commerce experts expect
1t to pass, the ten.million-dollar
mark
BY the time the worlds commerce
reaches to 100000. 100000 mark,
American trade probably will be
sis, 900, 900, 900 a year. The establish.
ment of a world bank to facilitate
the exchange of so much commerce,
therefore, would be OF tremendous
benefits to America.
'In 1921 said King, II offered a
resolution in the Senate directing
President Harding to call conven-
ton of the leading financial nations
for the purpose of establishing an
International bank and the stabtliza.
ton of foreign exchange.
II believe now, as then that an
international bank would be sound
financial and economic institution.
It would handle the settlement of
accounts between nations, aid in tf e
buying and selling of commodities
between peoples and snake for bet
ter relations internationally both
economically and politically. l feel
the plan suggested by the Young
Reparations Commission should be
carried out, and bank with larger
powers than indicated should be
established.
Big Aid to Commerce
'.Such a world bank would facili-
tate the worlds trade and promote
world peace. The benefits would be
tremendous to all nations. but the
United States would benefit more
than any other nation, because of
our huge volume OF International
trade.
ANY agency that will aid trade
and bring the business men Of va.i-
Gus nations together will prove Of
incalculable benefit in a. material
way to say nothing of other fields, \
such as education and culture
Such an agency tends to unity
nations, break down barriers and
prejudices and destroy the seeds of
war. It would be a great step
tnvga ri real world neace "