Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-14
Bank of Preparations Raises
New Questions for America

With Jackson e. Reynolds of New
York es chairman of the committee
which is meeting at Baden Baden to
aNRanged for the creation of the Inter-
national Bank for Preparations and Mel
vim A. Traylor, another American, as
a colleague of Mr.. Reynolds on the
committee, the proceedings are closely
followed in this country. Chief inter-
est Is centered in relations between the
proposed financial institution and the
League Of Nations. The location Of the
banl~ as q. world influence also Is dis
clssed.
THE new bank will take over the
work now being performed by S. Parker
Gilbert, the American agent general for
reparations. 1t will have capital of
$l00, 900, one-fourth paid In, and
subscribed In equal proportion by
Britain, Germany, France, Japan, italy,
Belgium and the United States" ex-
plains the Brooklyn Daily Eagle. That
paper believes that "the easy solution
Of controversies will probably be found
by making the statutes broad enough
to cover all possible functions of the
new bank" The Eagle adds: 1T has
been suggested that the International
odAlh AAABAlt even ~ AltO uuuCVClOpCO
portions OF the earth to open up new
markets for German manufactures in
order that Germany might pay repara-
tons without dislocating the established
foreign commerce of other countries.
The chief battle connected with the
initiation of the bank viii be fought
over its location"
There Is no reason to doubt that
such an institution would be a great
improvement over the old reparations
machinery" in the opinion of the Kan
sas City Star, which continues: 1T
should prove both simpler and more
efficient. But this is not merely bank
for reparations settlements. And no
Consideration of the Young plan can
afford to ignore the general banking
functions for which 1t also provides"
The Star believes that the proposal
carries the hope of assistance for Ger
many In meeting her last "a annuities:
for she would share in the profits on
considerable doubt, however, whether
this residual share of the profits is apt
to be Of any Importance" The sugges-
ton also Is made that "the proposal
should do much toward satisfying Ger
man pride"
ITO the general public, in all coun-
tries" according to the Atlanta Journal,
"the most interesting and the most
meaningful aspect of the bank Is this:
that 1t signifies growing disposition to
give economic wisdom wider sway in
diplomacy and a steady trend toward
liberal cooperation among the govern
ments and the peoples OF the earth"
The Worcester Evening Gazette also
offers the view: we are not going to
participate ofIicially in the new bank
Yet it will clarity our thinking. and will
help some of us to avoid the folly of
loose talk about isolation II we realize
that this Nation is intimately bound up
with the political and economic affairs
Of Europe, and that no decision of major
importance can be taken by the nations
of the Old World which does not in
some degree involve our national in
terests."
There Is, however, a warning from
the Chicago Tribune that nothing Is
more certain than the dissemination
of the American people to fall In with
q plan to enlist American finances
based on confidence that where our
money Is involved our military force
will also be available-unless it Ia the
determination Of the European powers
TO put 1t over. Under the eircum-
stances" continues the Tribune, sit Is
the duty Of the American delegates to
stand unyieidingly for the permanent
divorce of, the league and the bank"
When the Bank Of international
Settlements u established." states the