Evening star., 1943-04-06
Text of Treasury Statement
Postwar Monetary Problems Under Study
To Halt Threot Of International Chaos

the economic ailments of a postwar
world. Rather we have attempted
to address ourselves to the specific
problem of foreign exchange stabil-
ity and the common sense way of
achieving this end
Our views are based on the rich
experience that this country has
had in cooperating with other gov
ernments in our attempts to main
tain exchange stability. We have
tried to adapt that experience to
the broader and more difficulty cur
rency problems confronting the
world during the postwar years.
We have also kept in mind the
pattern laid down by the tripartite
agreement and our own stabilization
agreements.
Tentative Proposal.
Our tentative proposal is to estab-
llsh an international stabilization
fund in which all the United Nations
and those nations which are asso-
clated with them in this war would
participate. This fund would con-
stltute an international agency with
powers and resources adequate to
promote the maintenance of cur
rency stability.
The cooperating governments
who would participate in the pro-
gram, would, among other things.
undertake not to engage in COM
petitive depreciation of their cur
rencles. This stability would be IN
large measure secured by fixing the
value OF currencies in terms of gold
and by providing that changes could
not be made without consultation
with other members.
The resources of the fund that
we have in mind would be provided
by the participating governments in
an amount and form suited to each
nation. Participation would be in
the form of gold and local currency
and public obligations of the mem
ber countries. The operations of
the fund would include buying and
selling of foreign exchange under
adequate safeguards.
The fund would deal only with
treasures and central banks. 1t
would not compete with private
banks or existing agencies. It's op-
erations would be maintained only
to supplement the efforts made by
each member government to main
tain monetary stability.
Established Channels.
The established channels of in
ternational trade and international
banking would be retained in full
for all international transactions.
We have given special attention to
the solution of certain troublesome
monetary problems growing out of
the war and have included sugges-
tlons for handling of such problems.
In particular, the fund would facil-
tate the restoration of free exchange
markets and liberate the abnormal
balances which have accumulated in
some OF the countries as a conse-
quence of war conditions.
The control of the operations of
the fund would be in the hands of an
international board appointed by the
governments of the member coun-
tries and the voting power on that
board would be related to the con-
tribution which each country makes
to the required fund.
The creation of an international
agency of the character that We are
contemplating is a logical develop
ment Of the various tentative steps
which have been made in the direc-
ton of stabilization OF currencies
during the immediate prewar years.
I have been anxious to discuss this
matter with you and to keep you in
formed of developments. Obviously
We are still in the early stages of our
thinking and discussions. However,
I did want you to know what we are
doing, and I do want to feel free to
come back from time to time and
discuss the subject with you and OBJ
tain your views and advice.