Evening star., 1944-07-13
A-18 '**THE EVENING STAR. Washington D. C.
a. E
Money Farley Awaits
Moscow Decision on
Sterilization Quota
BY the Associated Press.

BRETON WOODS, N. H., July
13.-The world may know before
the day ends whether A Allied ma
tions really are on the road to plac-
ing before their legislative bodies
concrete plans to pool some $l8.-
O00, ,000, 900 in the hope of assuring
a brighter future.
Actually today's action at the
United Nations Monetary Confer
ence-generally expected to be
favorable-involves less than half
the amount of that pool. 1t con-
Germs a projected 5000 900 ,000- plus
monetary fund designed to stabilize
postwar currencies and help nations
keep their foreign trade positions
In balance
The results, however, will smooth
the way for similar action on con-
templated $4,000, ,0O0, 900 world bank
intended to stimulate the flow of
money needed to repair war devasta-
ton and for agricultural and in
dustrial development.
U. S. Request VERY Strong"
Delegates assembling for a con-
ference session waited first for an
answer to this question:
Has Moscow replied vet to this
countrys very strong" request that
Russia take a final stand on the
proportionate amount of gold she
Is willing to put into the suggested
monetary fund?
1t was generally expected she
would play ball" thus accepting
at face value an American explana-
ton that an acknowledged misun-
derstanding between the two coun-
tries resulted from language diff
6culties.
As officially explained, the Soviet
delegation came to Breton Woods
believing the United States would
support her demand-based bn the
devastation she has suffered during
the WARRIOR a reduced initial gold
contribution.
Quickly informed early in the
talks here that the Americans hac
intended no such commitment, the
Russians adopted the view TIA,
they could proceed no further or
that point without word from
Moscow.
Word Failed to Arrive.
That word, however, failed tc
come. Finally the Americans de.
termined that the issue must be
resolved If the conference is tc
end on schedule July 20. The de.
mand for an answer followed
couched in the friendliest of terms
The British also are prepared tc
oppose the Russian request for con-
cessions. Lord Keynes of the Brit
ish delegation, however, is ready to
argue that if any such special treat
ment is accorded countries devaS-
tated by enemy occupation she
would want the same consideration
In view of her losses from bombings
Actually the amount of gold in
volved in the dispute is small in
comparison with the size of the prof.
ect-in Russia's case it couldn't be
larger than sl50,000,OOO. compared
with an expected 81 200 100000 total
Soviet quota, and probably would
be much less.
Would Work Together.
Entirely separate institutions, but
designed to work closely together
both the monetary fund and the
bank have one primary purpose: To
promote worldwide prosperity.
BY permitting countries to buy
with their own money the money of
other nations they need to pay the
temporary differences between i'm
ports and exports. the fund thus
would give them a breathing spell''
while they try to achieve a proper
trade balance.
Another intent of the fund is to
keep the various foreign exchanges
within limits of normal f1uctuation.
In contrast with the wide swings of
perwar years. Then trade was seri-
ously disrupted by Government con-
trolls arising from those swinging
Values-controls designed to curb or
even halt imports and thus reduce or
obviate the demand for scarce for
eign exchanges.
Would Provide Extended Credit.
The bank would be intended to
provide the long-term credit-in
some cases running up to so years
that virtually every country except
the United States will need in the
postwar period. This country is gen.
orally recognized as the chief source
Tor such capital. but the bank would
spread the risk over all countries in
proportion to their ability to with
stand financial strain
An important feature is that vir-
tually all the loans would be for
goods rather than of money. None
OF the funds could be spent for such
things as labor of locally available
raw materials
Another major point is that such
. bank would provide a window for
looking into the whole borrowing
operation of any given country. thus
providing added protection for in
vestors.
Even should complete agreement
be reached here. however. it would
not be binding on a single country.
Each government must decide
through its own legislative processes
whether to accept membership.
Because the United States would
contribute nearly third of the
monetary funds cash, and possibly
more than a third of the banks
capital, it would WELD powerful
voice on important policy issues.
(nuihnaef Rueinoeemon