Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-14
YOUNG PLAN BANK
Il FUNCTIONS GIVEN
Statutes, Charter and Trust
Pact Signed by All Ex-
1 cept BelgianS.
Continued From First Page.l

fY" of New York.
The unissued portion of the banks
capital stock may be offered otherwise
by a two-thirds majority vote of the
board, but only to countries interested
in reparations or satisfying the practi-
cal requirements of the gold exchange
standard. In none of these cases may
more than 5000 shares be offered.
Shares Are Transferable.
Only Is per cent of the value of each
share shall be paid up at the> time of
subscription. The capital may be in
creased or reduced by two-thirdS ma
jority of the board In general meeting.
No shares shall be issued below par, but
shares shall be transferable, provided
the tranSferee is agreeable to the Bank
OF International Settlement and the is
suing central bank or equivalent institu-
ton.
Shares will not carry voting rights,
the latter being vested in the respective
spending institution. Subscribing in
situations may either issue shares di-
rectly to the public or certificates
against the Bank of International Set
tiement shares owned by them.
Chapter III contains a So-called
veto clause" After enunciating the
general principle that the operations of
the Bank of International Settlements
must be in conformity with the none
tAry policy of the central banks of the
countries concerned, the statutes con-
tinue:
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 afford to
the central bank or central banks di-
rscty concerned an opportunity to dis
sent" If there is diSapproval the OPP
GRAFTON may not take place
The banks permissible operations in
clude: Buying and selling of gold for
its own account or the account of the
central banks; holding gold for its own
account under the earmark of the CEN
trail 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 nquidity; buying and selling of
exchange for its own account or that
OF the central banks; buying and SELL
ing Of negotiable securities other than
shares, and maintaining of current or
deposit accounts with the central banks.
The statutes fix acceptable deposits
as including those from the central
banks, those in connection with trustee
ernments and such others as are within
the scope OF the banks functions.
May Act as Agent or Trustee.
The bank may act as agent or corre-
Spondent for any central bank or ar
range with the latter to act as it's agent
or correspondent. The bank also may
enter into agreements to act as trustee
or agent in connection with interna-
tional settlements provided such agree
nlents do not encroach on the banks
obligations toward third parties.
TO provide for special situations such
as might arise in the United States
the statutes add: ANY operations which
the hank is authorized to carry out with
the central banks under the preceding
article may be carried out with banks,
bankers nnrporations or individuals of
any country, provided the central bank
Of that country does not object"
The bank may enter also into special
agreements with the central banks to
facilitate the settlement of information
al transactions between them.
Things which the Bank of Inter
national Settlements may not do in
cIude:
issuance Of currency. acceptance of
bills of exchange, making advances to
governments, opening II current ac-
counts in the names of governments
and acquiring predominant interest in
any business concern owning real estate,
except when unavoidable. The bank
must be administered with particular
regard to maintaining the liquidity of
its accounts.
Chapter w vests the banks admins
tTation in q board composed ex ofdcio
Of the central bank governors Of the
seven organizing countries or their
appointees, or alternates, who viii be
seven persons representative OF the
finance, industry and commerce, each
appointed by his central bank governor.
If in the case of the United States
the governor does not wish to act or
appoint some one, the governors Of the
banks of other nations may invite two
nations of that country not objected to
by the respective central bank.
Ten Meetings Every Year.
Besides these IA directors, German
and / Frenchman may in addition be
appointed by the respective central bank
governors so long as Germany pays on
not exceeding nine directors may be
chosen from panel of nominees from
other countries as provided by the
Young plan. Non-eXofdcio directors
hold office for three years, but are re-
eligible.
No government oficial except CEN
tral bank governor, nor any member
of any legislative body may become a
director Of the international bank. The
board of directors must meet at least
10 times annually, of which meetings
must be. at the domicile of the bank
The powers of the chairman of the
board of directors, who also will be the
president of the bank, are sweeping:
Subject to the authority of the board,
the president will carry out policy and
control the administration of the bank. !"
His term of Office is three years, but
he also is re-eligible.
The banks general manager will be
appointed by the board Of directors on
the proposal of the president. He will
be responsible to the president, who will
recommend also to the board heads Of
departments. The remainder Of the
staff will be appointed by the general
manager, subject to the presidents ap-
proval. The Interpretation was placed
on this here that the president, thus, is
clearly the guiding spirit OF the insti-
tuition.
Chapter five of the statutes provides
that at general meetings voting rights
shall be in proportion to the number OF
shares subscribed in the country of each
institution represented at the meeting.
Extraordinary meetings may be called
to amend the statutes, increase or de-
crease the banks capital or to liquidate
the bank.
Must Publish Annual Report.
Chapter six fixes the financial year,
beginning April /. The bank must pub
lish an annual report and at least
monthly statements.
Chapter seven provides among other
things that the bank may not be liqui-
dated except by three-fourths majority
in a general meeting and not before 1t
has discharged all obligations assumed