The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1944-06-08
Weird Meeting Of Directors
Took Place Recently
At Busle
BY c. NJ. WINTHROP
Federated Press

New York.-The Bank for Interna-
tiOnal Settlements in Basle Switzer-
land, is a vital link in the economic
appeasement chain binding Nazi eco
nomic circles with certain English and
American fnancierS and industrialists.
World attention focused on the BIS
when Il wierd meeting of the bank S
board of directors took place in its
luxurious chambers at Basle. Set up in
1929 to clear German reparation pay
ments for World War !, the BIS was
following its rain-or-shine, war-Or-
peace custom of declaring dividends.
Only one director was present at the
meeting-Ernest Weber, head of the
Swiss National Bank of Zurich. But
Axis members from Germany, Japan,
Italy, France, Belgium and other occu-
pied countries sent in proxy votes by
registered mail.
Proxies were also sent i'm by the
English interests formally represented
on the board fo directors by Sir Otto
Niemeyer, director of the Bank OF
England and former controller of
finance in the British government, and
Montagu c. Norman, until recently the
governor of the Bank of England. Nor
man is a close friend of Or. Hjalmar
Schact, high priest of Nazi finance.
American shares We're voted by the
First National Bank of New York,
since the L. S. did not become mem-
ber Of the BIS through its central
bank, the Federal Reserve System, as
did the other big powers. a junta Of
the First National Banks of New
York and Chicago and j. Z. Morgan x
Co. sold 10000 BIS shares in this
country. But today only 5000 remain
in American hands President of the
BIS is an American-Thomas Fl. Me-
Kittrick, former director of the Ma
tional City Bank of New York and
Genoa, Italy.
In the midst of an allout war against
fascism, the activities of the BIS
strike curious and alarming note.
Funds of the BIS raised from stock
sales and large deposits by members
have been used in highly profitable
years they have been overwhelmingly
in the Nazi economy and fascist Italy.
Loans to Germany exceed the total
capital of the BIS.
Thus the profits now coming to
American and British stockholders
through dividend distribution are
rooted in the Nazi war economy.
Germany controls the operations and
policy of the BIS by its appropriations
of shares of the Netherlands, Greece,
Denmark, CzechoslOyaka, France and
other overrun nations. The original
Reichsbank holdings of 1912 shares
out of 100000 in 1897 have been multi
piled. Today Ill per cent of BIS
shares are controlled by the Axis, 23.S
per cent by United Nations members
and 40 per cent by more or less"
neutrals.
At the outbreak of the war the bank
announced il would adhere to princi-
pies of "scrupulous neutrality" a.
phrase which it employs to cover up
its pro-AXis activities. When Germany
took over Czechoslovakia in 1888, the
BIS was used to transfer more than
S24 million from the Czech account in
Il British bank to the Nazis.
Best evidence of the banks Axis
leanings is in its June g. 1912, report,
which pretends to give an overall
technical review Of world economic
Warfare. 1t quotes frequently from
German and Quisling economic reports.
In discreet terms it praises the sue
cess" of the Nazi battle against infa-
tion and the virtual stability" of
prices there as contrasted with Eng
land.
The report quietly praises Hitler's
blitz against Europe as the means of