Scandinavian American. [volume] (Seattle, Wash.) 1945-1958, 1945-06-01

trade can borrow from the fund For example,
suppose the Norwegians are buying from us more
than they are selling to us; the excess value OF
their purchases over their sales-that is to say,
their imports over their expOrts-will have to be
made up in American currency. They can Dor
row this currency from the fund.
There are, of course, rules which limit the
extent of such borrowings and another rule which
reduces the voting power of nation in proper
ton as its borrowings increase, in order to pre-
vent debtors to the fund from outvoting cred-
tors of the fund.
The rules provide that borrowers cannot take
more than rs per cent of their quota (the quota
being the amount they pledged to the fund.- in
any one year, nor can they raise their total COM
mitment beyond double their quota, or 200 per
cent. Thus adequate safeguards have been pro-
vided to insure the solvency of the loans to pre-
vent abuse of the loan privileges provided by the
fund.
Each nation, large and small, is given $50 votes,
and each of them has additional votes in proper
ton to their financial contribution.
The most important nations are, of course,
the United States Great Britain and Russia.
These nations have the following basic votes: the
United States, % per cent; Great Britain 13 per
cent; Russia II per cent
If nations ratify and follow the Breton Woods
Agreements, they cannot easily take advantage
of other nations by lowering the value of their
currencies, which in the past has been so fire.
quently done to the harm of world trade and
friendly international relations. Consultation is
required before any country can change the value
of its money. After consultation, it can devalue
its currency, but only by 10 per cent, and then
only for the purpose of correcting unbalanced
trade situation. It cannot devalue merely to slim
ulate its foreign trade. If country desires to
lower its currency's value more than 10 per cent,
it has to obtain the approval of majority of the
nations in the fund.
1t appears fair to expect that stable exchange
rates and international loans (from the Bank
can go considerable way toward increasing en-
ployment in export industries. Some people have
estimated that the agreements can create five
millions in our export industries will increase pur-
chasing power and SO create more production and
employment in domestic industries and thus pro-
vide more jobs.
Loans from the proposed Bank for Reconstruct
ton and Development could be expected to raise
the productive capacity and buying power of
nations receiving the loans. That would mean
more jobs, both in those countries and in America
higher standard of living abroad means greater
power to buy American goods and employ Amer
lean labor.
With reconstruction so imperatively needed in
much of the world, and with the necessity for
placing world interchange of goods on a sound
basis, it is difficult to see how any decisions and
agreements reached at San Francisco could be
of lasting good effect in the world unless along
side them we have the Breton Woods Agree
ments to give them working capital for rebuild
ing physical wreckage and raising living stand
ards.
Breton Woods and World Security must go