Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-11
SENATE MAY BAR
u. S. FROM BANK
Official American Representa-
ton in International Finan-
CiaI House Discussed.

The answer to whether the United
States shall be represented in a formally
oficial sense on the new Bank for IN
ternational Settlements comes down TO
zee aenUence, "The Senate won't ls. rs. "
I1Sn& EA.iI.7 answer has been the expla-
stan 81 many OF cur refusals and ne
cations in the field of international re-
lations during the past 10 years.
In the present case, the Senate would
have no direct authority Appointment
of an American representative on the
board of the bank, even If it were made
or suggested by the President, would not
need to be confirmed by the Senate. The
Senate, however by series OF actions
since the Paris Peace Conference, has
created policy. That policy is that
the United States shall not participate
in the collection of reparations from
Germany.
1t may be good policy or bad policy.
Many thoughtful persons think the
policy is most unfortunate, because, no
matter how vehemently the Senate de-
MES it, the fact remains that the United
States has an intimate connection with
the collection of reparationS. Whether
the policy be good or bad, it is a policy
Since it is firmly held Senate policy,
it must be respected. Everybody knows
the Senate is meticulous about it, If a
step were taken Of nature contrary to
that policy, the Senate would most cnr-
tainly take notice. and take notice in
a seriously hostile way. The conse-
quence is that the step cannot be taken,
and for that consequence the Senate is
responsible.
Formally Doesn't Matter.
The other side of the situation is that
1t does not matter at all whether the
United Safes is represented on the new
bank in formal official sense. The
Senate can be SO intimidating as effect
ually to prevent formal representation
of the United States. When that is
realized, 1t will follow that the United
States will be represented informally
and the informal representation will be
as effective as the formal one would be
Some two American bankers, whether
connected with our Federal Reserve
system or not, can be made the Amer
lean representatives on the board Of
the new bank.
Assuming the two bankers are wisely
chosen, they can carry on the co-opera.
ton OF the United States as fully as i
they had been confirmed by the Senate
They can be more effective than If the
entire Senate itself sat on the board
That cooperation by the United State.
is essential in our own interests is 6
conviction held py every thoughtfu
persons.
The Bank for International Settle
ments will start with the primary pur'
pose of acting as clearing hous,
through which payments from Germany
will be passed on to the nations fol
which they are destined. Starting with
functions related directly to reparations
the bank will become an internationa
bank in sense never before attempted
and hardly ever dreamed. 1t will make
a reality cut of the often dreamed "banl
of nations" In a way 1t will be to the
whole world what the Federal Reserve
system Is to the United States. 1t will
be, In the words of one thoughtful stu.
dent of the plan, more ideally con
stituted to play the part of centra
bank Of the world than any existing
institution
When the new bank is seen in thos,
terms the question Is not whether WI
shall be represented, but whether vi
can afford not to be represented. Sucl
an institution will have powerful in