Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-19
WORLD BANK GAINS
/ SHOWN IN REPORT
President M'Garrah Reveals
Deposits Have Grown Rapid
h During the Past Year.

~ the Associated Press.
BASLE, Switzerland, May 49,
took only IS minutes today for tn,
central bankers and other delegate
from "a nations to settle their bust
ness at q meeting Of stockholders II
the Bank for international Settle.
ments.
Since his report had previously beer
submitted, President Gates w. Nc
Garrah confined his remarks to a brie1
speech Of welcome. When he asked fol
discussion nobody had anything to saj
and in rapid succession his report was
adopted, a dividend of per cent was
voted and his other recommendations
were approved. Then the general
meeting adjourned.
Work Summed Up.
Mr.. McGarrahs report summed UP
the activities of the fiscal year, tracing
the banks growth from seven share
holders to % and from deposits total
ling 220000,000 Swiss francs. with
assets and liabilities of 300,000,0 900, to
deposits of 1,780 100000 and total assets
and liabilities of 1,900,000000 last
March 81. The Swiss franc is worth
q little more than 19 cents.
Net profits totaled 11,186,52l Swiss
francs, division of which he recon-
mended as follows: Legal reserve fund,
559,326 francs; dividend at 6 per cent
for the period between respective dates
of payment of capital stock and March
81, 5.156.25O francs: special dividend
reserve fund for use in maintaining the
cumulative 6 per cent dividend, 1904
189 francs, and general reserve fund,
2,188,378 francs.
Distribution Fixed.
The remainder of 2,188,378 francs for
distribution among the governments OF
France, Germany, Great Britain. Italy,
Belgium, Rumania, JugoSlavia, Greece,
Portugal, Japan and Poland in accord
ance with The Hague agreement OF 1880
and on the understanding that deposits
by these governments will continue Tor
at least five years.
President McGarrah said deposits so
far were solely from governments and
central banks.
Long-term funds over which the
world bank has disposition aggregate
404,000,000 francs, these being made up
of paid-in capital and government de-
posts by Germany and creditor powers.
Cooperation Cited.
Certain government treasures" he
said, which maintain deposits through
their central banks accumulated with
the Bank of International Settlements
the Sims necessary 70 meet their So
called out-paymentS abroad.
Thanks to the spirit of cooperation
between the central banks, the Bank
of International Settlements has be-
come an organization which acts as a
reserve center for foreign exchange
holdings of those agencies In the re-
spective countries which are charged
with the duty Of maintaining exchange
stability"
To help countries in need OF eco
nomic development, however, especially
concerning promotion of export, the
Bank of International Settlements has
decided to set aside 150.000,000 francs
for middle-term credits.
Functions without Hitch.
McGarrah said that as trustee the
Bank of international Settlements
functioned without hitch. The Bank
of international Settlements also served
as trustee for annuity payments Of
Bulgaria, Czechoslovakia and Hungary
according to The Hague agreements of
January, 1890, and as fiscal agent for
service Of the German external loan Of
1924.