Evening star., 1945-04-20
Compromise Possible
On Breton Proposals
Bell Talk Indicates

Some members Of Congress be-
heved today that 4 speech before
the Washington Kiwanis Club yes
terday by Undersecretary Of the
Treasury Daniel w. Bell indicated
. willingness by the administration
TO compromise on the Breton
Woods proposals which might lead
to breaking the current legislative
deadlock over them.
Addressing the Kiwanians at the
Mayflower Hotel, Mr.. Bell defended
the proposals. but also indorsed as
very sound" suggestion by the
Committee for Economic Develop
ment that the proposed Interna-
tional Monetary Fund be used only
for short-term currency stabiliza-
ton and that the projected Inter-
national Bank be authorized to
make "long-term Stabilization loans
in connection with programs for
economic and monetary reconstruc-
tion."
The American Bankers Associa-
ton has spearheaded the opposition
to acceptance of the Breton Woods
plan without amendment. In a.
recent report by w. Randolf Bur-
CESS, ABA president, the $4,000
900, 900 International Bank was in
dorsed. But the report was critical
of the $500 900 900 sterilization
fund, holding that loans to be made
under 1t were contrary to accepted
credit principles"
Spence Opposes Amendments.
Chairman Spence of the House
Banking Committee said he was
not disposed to accept amendments
to the monetary agreements in any
form, but he volunteered the opin-
Ion that the CED proposal could be
adopted without necessitating an
other 44-nation conference.
One Republican, Representative +
Crawford of Michigan, said he con-
sidered Mr.. Bells speech as "a fore I
runner to get-together." Repre-
sentative Monroney, Democrat, OF
Oklahoma declared the CED pro-
ppSdl ldi SCly ais WcIS LIE WOTSl
critics of the fund
Mr.. Bell, discussing criticism of
the agreement, said that some
critics of the fund have urged
changes in the agreement to assure
the proper use of the funds re-
sources. We agree that the fund
and the bank should be operated in
a manner that will not impair the
financial soundness of either insti-
tuition. We agree that the fund
should be used only where it can
appropriately be used for current
stabilization operations, and that
the bank should be used only where
1t can appropriately be used for
reconstruction and development
projects and for programs of eco
nomic and monetary reconstruc-
ton. We believe that there are ade-
quate safeguards on these points in +
the agreements. -
Experience Will Bring Changes.
No one claims that the fund and
the bank are perfect. Experience
will show that some changes are
neeoed. But these changes can be
better made after the fund and the
bank have been in operation for a
while and when we see more clearly
what changes are needed. i
in making our decision we should
have clear understanding of what
will happen in a world of economic
isolation. Unless we secure interna-
tlonal agreement for stable and or
derly exchange arrange ents !
through the fund, countries will
proceed at once with policy of r
special deals between governments q
that will inevitably destroy free +,
in international trade. In :
many countries there are already !.
influential advocates of the use of
direct controls in international 4
trade" Il
Mr. Bells address was heard bv a
large group of Kiwanians and
guests. The speaker was introduced
by Raymond F.. Garrity, past presi-
dent of. the cluh