Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-13

IL. i lie TGHldlIlOcE OI lLIc plOllCSs dAOCA
payment to the general reserve 1uno
and payment of the per cent dividend
as above, shall be distributed as fol-
| lows:
A. Twenty per cent shall be dis
| tributed to the shareholders in SO far
as necessary to make up q dividend OF
per cent on their shares. Half the
remainder of this 20 per cent shall be
allocated to the shareholders in so far
as necessary to make up a dividend of
10 per cent One-fourth Of the remain
der of this 90 per cent shall be allotted
to the shareholders without limitation.
B. The balance of the profits remain
ing after the above operations shall be
divided equally between the general
| reserve fund and the special reserve
fund.
10. AT the end of the period during
which a part of the German annuities
is allotted to the bank, or on the Nqul-
daticn of the bank, whichever is earlier,
the special reserve fund shall be dis
tributed among the creditor govern
mentS in proportion to the certihcates
held by them under paragraph IL.
The bank may, however, decide to
distribute the special reserve fund
partly or wholly at an earlier date"
Management Plan Detailed.
D. Directorate and management.
20. The governor of the central
bank of each of the seven countries
to which the members of the present
committee belong. or his nominee, shall
be a director of the bank eX-ofhcio.
Each of these governors shall also APP
point one director, being a national OF
his country and representative either
of finance or of industry and COM
merce.
81. During the period Of the Ger
man annuities. the governor Of the Bank
OF France and the president OF the
Reichsbank may, If they desire, ap-
point each one additional director of
his own nationality, being representa-
tive OF industry and commerce"
| %. The governor of the central bank
Of each of the other participating coun-
tries shall furnish list Of four candi-
dates of his own nationality for di-
rectorships. Two of the candidates on
each list shall be representative of
finance, the other two of industry and
commerce. The governors in question
may themselves be included in these
lists. From these lists the Ia or 16 di-
rectors mentioned in paragraphs 81 and
~ shall elect not more than nine other
directors.
49, Five directors are to be chosen
by lot from those first appointed to re-
tire at the end of the first, second,
third and fourth years from the estab-
lishment OF the bank. Subject to this,
the term of Office of directors shall be
flVe years. but they may be reappointed.
"a. The directors shall elect a chair
NUMBER. The chairman'S duties shall
be to preside at the meetings of the
board Of directors.
Prefer Resident Members.
rs. 1.-THE functions of a director
OF the bank are incompatible with
those involving national political re-
sponsibllities. The. statutes of the
bank shall make the necessary pro-
vision in order to avoid such a con-
fiict OF functions. All directors and
| candidates shall be ordinarily resi-
| dent in Europe or shall be In position
to give regular attendance at meetings
of the board
&c. The board of directors may ap-
point an executive committee and may
delegate thereto such powers as may be
provided by the statutes of the bank.
The board may appoint advisory COM
may come before 1t.
20. The head office and domicile of
the bank shall be at -" This
space Is left vacant apparently SO that
the axact city can be finally decided
upon at later date. 1t is probable
however, that the bank will be located
In Holland, probably either Amsterdam
or Rotterdam. with some city of North
ern switzerland as second choice.
20. THE chief executive officer of
the bank shall be the director general
who shall be appointed by the board
The director general shall select officers
and heads of departments of the bank
with the approval of the board"
The next headline reads, General"
and was unquestionably added in recog-
milton OF the special category of Ameri-
can assistance
80. In any country in which there
Is no central bank, the functions of the
central bank under this scheme NAV be
performed by some banking organiza-
ton or conSortium agreed between the
Bank for International Settlements and
the government and the bankers of the
country. In the United States these
functions will be performed by the gov
ernor or chairman OF the Federal Re-
serve Bank of New York"
The final paragraph, which is also
the concluding paragraph of the re-
viSed draft of the international bank.
Is understood to have been tempered
since by some such phrase as 1.-The func-
lions may be performed" instead of
shall be performed"
There is every probability that, with
very minor changes in wording, the
draft finally will be inserted into the
experts report which will constitute the
Young plan.
Whether or not the experts reach
agreement on figures here, the Young
plan for this international bank will be
outstanding as by far the greatest of
the Young committees achievements.
1t will constitute painstakingly drawn
scheme for the worlds first interna-
tional bank 's
Even should the experts disagree over
Germany's annuitieS, the bank will re-
main as the saving grace Of their
nearly four months laborS More than
that, in case of failure to reach agree
ment here 1t will be handed to the
governments as the unanimous recon-
mendation of the seven nations experts
that the international bank should be
utilized for the carrying out Of any
scheme of payments which may be
agreed on in future.
This drafter international bank Is
recognized by all the experts at Paris
as in fact and in substance the real
core of the Young report, which may
not be finally published for another
three weeks or a month. In that re-
port the purposes, functions and pow
ers of the international bank will be
incvluded virtually as herewith pre-
Sented.
(CopyriRht, 1921