Evening star., 1945-04-23
Ending Economic Warfare
The MONETARY FUND

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The Breton Woods program for World Bank and
World Monetary Fund is now before Congress. The
entire world is waiting to see whether Congress ap.
proves this economic charter for postwar trade and
prosperity, rejects it and thus weakens interna.
ional economic collaboration at the very outset.
Support for the World Bank is unanimous But BE-
cause some opposition has developed to the Monetary
Fund, it is important to understand the purposes of
the Fund and the manner in which it is desiened to
work.
A Code Of Fair PIdy
The Fund is the United Nations answer to the evils
Of currency manipulation, exchange controls, and
other restrictive practices which during the Thrties
transformed trade into weapon of aggression. pro-
vdes code of fair play by which nations regu.
late the values of their currences sets up pool of
gold and currency for the settlement of international
balances and establishes the machinery for nation.
scorhing together to settle common problems.
The nations agree to stabilize their currencies and
not to make ma or changes except with the approval
of all members of the Fund They agree to eliminate
progressively, exchange controls and other restrictive
practices through which unfair trade advantages were
obtained in the past
At the time, the nations will subscribe, each
in proportion to its strength gold and currency toa
total value of 88 billion dollars. This provides pool
from which each member nation that observes the
rules may purchase gold and foreign currency in
amounts based its original subscription, in order
to make international payments. When member
nations needs for gold foreign exchange prove to
be excessive that nation refer its currency prob.
lens the other members of the Fund for
as to corrective action.
The "key Currency" PROPOSED
This is fair and workable arrangement Under It,
the rights which each nation acquires balanced by
the duties which each accepts Nevertheless it has been
suggested that the arrangement be limited to the great
powers, leaving the smaller and weaker nations to
make whatever terms they can with those powers.
This ,could be po,oer politics ,cith vengeance.
It. is unthinkable that this country, which cham.
pons the sovereign equality of all nations in their
political relations, should refuse equality to all na.
tons in their monetary affairs.
Wisdom Of Founding Fafher.
No one claims that the machinery of the Fund is
perfect Obviously program drawn up by a nations
cannot appear perfect in the eyes of ALL The impor.
tant thing is that the United Nations agree to work
together and to establish an instrument to keep them
working together. Details can and will be changed in
the light of experience Perfection cannot be attained
any other way.
We are great nation today because the Founding
Fathers had the wisdom to accept compromise Con.
stitution with technique for its amendment rather
than lose the Union through the vain search for
perfection.
The issue now before Congress may be put very
simply: Have we in our day the wisdom that our
fathers had in theirs?
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