Evening star., 1943-08-20
Treasury Alters Plan
To Stabilize Currency
OF All United Nations
First Proposal Revised,
But U. 5. Still Insists
On Using Gold os Bosis
(TeTt on Page A-10.)

(TeTt on Page A-10)
4y the Associated Press.
This country's vast gold supply
loomed even larger on the post
war horizon today as the Treas
ury gave out a revised outline Of
its thoughts on internationa
finance.
Despite renewed emphasis on the
yellow metal as the basis for solio
set Of postwar currencies, Secretary
OF the Treasury Morgenthau ane
his chief monetary expert, Harry
D. White, said there are no insur-
mountable barriers to an agreement
with Great Britain, which has non
gold ideas, or any other country.
Still holding that the objective OF
greater and freer trade-and "eco-
nomic advancement and rising
standards of living for all"-can
best be realized by setting up a
fund tied to gold, the revised draft
contemplates an international kitty
of perhaps $4,000 ,000,0 900. or $3,000,-
100000 more than the amount orig
inally suggested. And it increases
the proportion of gold nearly every
country would have to put up.
British Plan Differs.
The British plan, advanced at
about the same time the Treasury
published Mr.. Whites original draft
last April, would seek to accom-
plish the same results without es-
tablishing a central fund backed by
gold and basing quotas, or voting
authority, on volume of world trade.
Canada, meanwhile, assigned its
experts to study of the subject
and advanced its own compromise
version little more than a month
ago.
In some respects the new White
plan embodies among its technical
revisions and Qualifications points
proposed by the Canadians, chiefly
new voting provisions to remove the
United States veto power. This is
retained in some instances, however
notably in connection with the gold
value Of the funds strictly book
keeping money-known to us as
"unitas," to the British as "bancor," :"
and to the Canadians simply as
"the unit"
Lacks Official Approval.
Although emphasizing that the
plan still lacks official approval OF
either the Treasury or the Govern
ment, Mr.. Morgenthau spoke of the
need for action to prevent a "repe-
tition of the exchange stability and
monetary collapse that followed the
last war"
Mr.. White, head of the Treasury's
division of monetary research and
a former economics instructor at
Harvard, said he regarded need for
action as urgent and expressed hope
an international conference to draft
a final proposal might be called
by early winter.
Mr.. White said no decision had
been reached on the matter Of ad-
mitting enemy and neutral countries
after the war.
The fund as contemplated would
be made up exclusively by United
and Associated Nations. Originally
the United States quota was esti-
mated at about $4,000, 900 900, but
Mr.. White said the amount under
the revised draft would be, roughly,
2,50o, 200, 900.
Aimed at Fluctuations.
Both the American and British
plans are aimed at preventing wide
in the relative value of
currencies of different countries in
order to promote international
trade. The theory is that business
Is handicapped when, for instance,
the value of the British pound, in
terms of dollars, changes from day
to day.
The British plan envisions a world
clearing union ito supplant gold as
a governing factor, but not dispense
with it." Participating creditor ma
tions would allow balances of cur
rency exchange to accumulate as
deposits. The union would be en-
powered to lend deposits for short
periods to debtor nations. Each ma
ton would be given quotas govern
ing borrowings and deposits based
on the volume of their world trade.
Thus, the revision announced by
Mr.. Morgenthau retains the funda-
mental difference, however, between
the original American proposal and
the British plan-gold versus world
trade volume.
Declaring that the new plan was
drawn up after discussions with ex-
perts of 80 nations, Mr.. White said
Russia did not participate directly
in the stabilization talks, but had an
observer at all general conferences.
In addition, he said, full reports were
sent to Moscow and the Soviets ad-
vised the Treasury that they were
very and keenly interested"
Principal changes in the outline
were upward revisions in the pro-
portion of gold in member quotas,
except for present enemy occupied
countries; requirement that ex-
change purchases be paid one-half
in gold instead of the earlier no-gold
requirement, and provisions that no
change could be made in the gold
value of the unitas without an IS
per cent vote.
Since the plan contemplates that
the United States would have more
than Is per cent of the votes, such
provision would give this country
a fat veto power on that phase.
Maximum voting power of any
country was reduced from Is to 20
per cent. In many cases previously
requiring four-fifths margin, the
revision called only for a majority
vote.
$40 Piono Durable
A piano which cost $50 continues
In service with the British Royal