Evening star., 1940-04-14


AZ alternate for Undersecretary Sum.
ner Welles. chairman Of the No. / sub.
committee Of an Inter-American Finans
ciaI and Economic Advisory Committee
set up at last years Panama Confer.
ence and the ensuing Council Of Finan~
cial Ministers at Guatemala, Mr.. Ber1p
took prominent part in the deliberse
tions Of the smaller body. The sub
committee was intrusted with the for.
mutation Of plans for monetary an6
financial cooperation, including the
Inter-American Bank. During men1-
orable session of the Temporary Ma
tional Economic Committee, Mr., Berle
not long ago argued in behalf Of . do
mestic system of capital banks as an
outstanding requirement for national
prosperity.
In the State Departments view, tho
interests of the United States are safe.
guarded on every conceivable hand By
the convention and bylaws as drafted,
Only governments may be stockholdera
and the bank will handle no transaction
unless it is guaranteed by the membe,
government involved. There will be no
direct contacts with private investors
individual or corporate. No country may
acquire more than so per cent of the
stock outstanding, and thus capture con.
troll Of the institution. For every I'M
portant decision a four-fifths vote Of
the directors is exacted. BY possessing
itself on one-fifth Of the outstanding
stock, plus one share, it is held that
the United States may interpose an
effective veto against attack by any
combination of States whatsoever.
Chief Measures Listed.
The Export-1mport Bank, in the for
eign field, has been an agent exclusively
of the United States policy. BY spreading
the onus among a score of participating
countries, it is hoped that the Inter-
American Bank may in future absolve
Washington from the charge of invoking
financial pressure to further its indi-
vidual benefit. In seeking to arrive at q
balance of trade between the northern
republic and its Latin neighbors, every
effort is declared to have been made to
protect the American worker and farmer.
The principal measures contemplated are
as follows:
Divert to the West Indies and to Gen.
tral and South America the tourist rev.
enues which travellers from the United
States formerly spent in Europe.
Stimulate in Latin America such han
dicraft arts as have been displaced in this
country by the factory system.
Foster Latin American DEVELOPMENT
OF machine industries on a low-price
level which have small competition here.
Such manufactures of cheap glass,
leather jewelry, wood and textiles made
Up 80 per cent of Czecho-S -Slovakia's ex.
ports to the United States.
Encourage the expectation of nom
competitive mineral and agricultural
products from Latin America to the
United States. -~s ? ., a s---
In addition to coffee and rubber, there
Is offered an amazingly extensive list Of
possible Latin American exports which
are wholly or partly non-competitive in
the United States
Taking into consideration not merely
commodities, but invisible exports-such
as returns on direct investments, re-
demption of bonds and interest and
amortization of loans-it is estimated
that in order to balance its accounts
with Latin America, the United States
would have been compelled to purchase
s574 ,000, 900 more of the formers products
than 1t did in 1868. For the year
1888, 1t Is declared, the United State.
had favorable trade balance of S79,-
600 900 on commodities alone.
Creditors Short -Sigted.
Upon such inequalities, opinion south
Of the Rio Grande tends to blame de.
faults OF debt in that region. It il
alleged that creditors in the United
States were short-sighted in demanding
too large proportion of their returns
in money instead of produce. s
In the attainment of q reasonable ball
ance of trade, the Inter-American Bank
Is expected to have a salient role. It
was created, the bylaws specify. ito
facilitate the prudent investment of
funds and stimulate the fun productive
use Of capital" 1t is to make loans Of
various maturities to participating gov
ernments and their fiscal agencies, cen-
tral banks, political subdivisions and
nationals, but in the last four cases only
If the debts are guaranteed by the gov
ernment concerned. Short-term loans
are for less than one year; intermediate
loans, between one year and five years
and long-term loans for periods in ex-
cess of five years. .-a