Evening star., 1944-04-22
Monetary
CONTINUED From First Page.

when hostilities cease, and i'm
measurably strengthen the prospects
for an enduring peace"
Mr.. Hull suggested the need for
speedy action in order to clear and
organize the worlds monetary chan
nels in time for postwar economic
reorganization.
The world is facing the most diff
ficult reconstruction job in its his
tory" the Secretary declared, add
ing:
without solving these (mone-
tary) problems we shall be i'm
mensely handicapped in seeing an
expansion of our foreign trade and
balanced prosperity for our nation.
Legislative Action Needed.
In an apparent bid for congress
sional support, Mr.. Morgenthau
said he had been authorized to say
Mr.. Roosevelt would appoint sew
eral Senators and Representatives
as members Of the American dele
cation.
In the case of this country, it
would require congressional ap-
preparation and legislation pre-
sumably along the lines already
voted for the American share in
the United Nations Relief and Re-
habilitation Administration.
Mr.. Morgenthau said negotiations
on principles for a proposed $40 0,O0O,.
100000 world bank to finance recon.
5truction and rehabilitation have
not been finished, but expressed
hope such a bank could be consid.
cred at an international conference
at the same time as the stabiliza'
ton fund-"the sooner, the better.
Without such a fund, he declared
the world at armistice time woule
be in a chaotic state.
Private investment on a world.
wide basis is vital to reconstruc
tion," he said. "Stabilization /!
necessary to develop investment"
"Unitas" Plan Dropped.
The experts abandoned ideas fol
an international currency-tht
'Unitas" proposed by the Unitec
States, or the "Bancor" suggested by
Britain.
Primary announced purposes O
the fund follows:
/. ITO facilitate expansion anc
balanced growth of internationa
trade and to contribute in this wa,
to maintenance of a high level o
employment and real income which
must be primary objective of eco
nomic policy"
2. ITO avoid wide fluctuations il
currency values and eliminate for
eign exchange restrictions.
Principal investments in the funt
would come from the United States
Great Britain, whose share would b.
about $1,250,0OO, 600, and Russia
about $1,000, 100000
Quota to Determine Voting.
Exact quotas would be deter
mined by the conference, and votin,
rights would be closely related t.
the quotas"
The agreement to base none,
values on gold and to set up tn
fund was proposed by Dr. Harry {
White of the Treasury. But tn
United States experts yielded o.
their idea of giving this country
veto power over international actor
by weight of votes.
However, changes in quotas woult
require a four-fifths vote, and ap
parently the United States woult
have sufficient votes to block such
change If it wished. Also, no coun
try's money could be revalued with
out its consent.
The agreement represents a clear
cut American victory over Britis
proposals to relegate gold to a mino
role In postwar currency stabiliza
ton.
Despite British capitulation t
American views toward gold as
sterilization basis, Mr.. Morgentha
emphasized that the present dra1
presents no single nations plan.
I'm England" said DR.. Whit
"they will find many resemblance
to the Keynes plan" Hord Keyne
financial adviser to the British eS
chequer, Is the author of a Britis
proposal which would have create
a clearing union to achieve stabilize
ton without emphasis on gold.)
The fund would be governed by
board on which each country woul
be represented, and by an executiv
committee of at least nine member
including representatives of the fiv
countries with the largest quota
China and France likely would b
the fourth and fifth nations.
u. S. Has Fund on Hand.
Member countries generally woul
be required to provide gold in tn
amount of Is per cent of its sub
scription, or 10 per cent of its hold
ings of gold and gold-convertible ex
qnenge, whichever is smaller.
fr. Morgenthau stressed the IA