New Britain herald., 1929-11-14
PARATI0NS BANK .
 STATUTES SIGNED.
(Continued From First Pagc)

Continued From First Pagc) as probable first choice for its first president, refused after the meeting had adjourned to make public the copy of the statutes. American press epresentatives finally had made available to them by Dr. Hjalmar SchaCht, the copy of the statutes he was releasing to the German press al 9 a. m. today.
 The seven chapters Of the statutes list. first. objects Of the bank and name of its seat: second. it's capital, three. it's powers; four, its manage ment; five general meeting; six, ac- counts and profits; and seven. gen. eral provisions.
 Capital stock Of the bank is fixed in chapter Of the statutes at 50o.- GOO, GOO Swiss francs (about $96.S96,- 500) divided into 200,000 shares, of which 112,0OO must be subscribed before the bank begins business.
 "X'' and ~" Guarantee Capital
 The subscription Of the total capital is guaranteed by the Central banks of Belgium. England. France, Germany, and Italy. also Messrs. ''N," acting in place of the Bank of Japan and Messrs. " Of New York.
 The unissued portion Of the banks capital stock may be offered other wise hy d two-thrds majority vote of the board but only to countries interested in separations or satisfy ing the practical requirements of the gold exchange standard. In none of these cases may more than 5000 shares be offered.
 Only 25 per cent of the value of each share shall be paid up at the time of subscription. The capital may he increased or reduced by a two- thirds majority Of the board in gen. eral meeting. No shares shall be is- sued below par but shares shall be provided the transferee is agreeable to the bank of inter- national settlement and the issuing Central bank or equivalent institu- ton.
 Shares Are NOn-Noting
 Shares will not carry voting rights. the latter being vested in the respective Central bank or it's nominee or correspor dcnce institu- ton. Subscribing institutions may either issue shares directly to the public or certificates against the bank Of international settlement shares owned by them.
 Chapter three contains the so- called veto clause" After enunciat- ing the general principle that the operations of the bank of interna- tional settlements must be in con- formity with the monetary policy of the central banks of the countries concerned, the statutes continue:
 "Before any financial operation is carried out by or on behalf of the bank on given market or in given currency the board of directors shall aI l oi u u tilt ANuii al DtiilN Ol ttIlti il banks directly concerned an oppor- tunity to dissent" If there is dis approval the operation may not take place.
 Operations of Bank
 The banks permissible operations include: Buying and selling of gold for it's own account or the account of the central banks; holding gold for it's own account under the earmark of the central banks; accepting custody of gold for the account of the central banks; making advances to or borrowing from the central banks against collateral of prime liquidity; buying and selling of ex- change for it's own account or that of the central banks; buying and selling negotiable securities other than shares, and maintaining of cur rent or deposit accounts with the central banks.
 The statutes fix acceptable de- posits as including those from the central banks, those in connection with trustee agreements between the bank and governments, and such others as are within the scope of the banks functions.
 The bank may act as agent or correspondent for any central bank or arrange with the latter to act as it's agent or correspondent. The bank also may enter into agreements 10 act as trustee or agent in con- nection with international settle ments provided such agreements do not cncroach on the banks obliga- tions toward third parties.
 Special Clause For L. S.
 To provide for special situations such as might arise in the United States the statutes add: Any opera tions which the bank is authorized 10 carry out with the central banks under the preceding article may be carried out with banks, bankers, corporations, or individuals of any country provided the central bank of that country does not object"
 The bank may enter also into spe- clal agreements with the central banks to facilitate the settlement of transactions between them.
 Forbidden Transactions
 Things which the bank of inter national settlements may not do in clude:
 Issuance Of currency; acceptance of bills of exchange; making ad- Nanccs to governments; opening Of current accounts in the names of and acquiring pre- dominant interest in any business concern owning real estate, except when unavoidable The bank must Ae administered with particular re-