The midland journal. (Rising Sun, Md.) 1885-1947, 1945-04-13

world price of wheat or other COM
modify in terms Of our own dollars,
will not be seriously disturbed by
large fluctuations in the principal ex-
porting and importing countries.
Stabilized Currencies.
So the purpose of the international
monetary fund is to stabilize and
promote balanced growth of inter-
national trade by stabilizing the
value of all currencies in terms OF
each other; progressively remove
barriers against making payments
across boundary lines, such as high
tariffs or other trade restrictions;
and to provide a supplementary
source of foreign exchange to which
member country may apply for
the assistance necessary to enable
it to maintain stable and unrestrict-
ed exchange relationships with 9th
er member countries.
For instance, in some countries
importers are not permitted to pur-
chase dollars required to buy goods
in the United States. In other coun-
tries, of which Germany was an ex-
ample before the war, foreign trade
was disrupted by use of so-called
multiple currencies, or barter ar
rangements, and during the war
many new restrictions have been
devised because of military neces-
sity.
The operation of the monetary fund
is intended to remove all these re-
strictiOns and set up standard and
uniform practice, currency value
and exchange rates SO that Amer
lean business may have the greatest
possible freedom in international
trade in the postwar era. The same
freedom is intended to be provided
for business i'm the other countries,
for freedom Of business would be
meaningless unless these other c0un-
tries accorded an equal measure Of
freedom to their own people.
There has been criticism aimed
at these proposals from some bank
ers on the grounds that they are
contrary to sound and established
banking practices. There has been
praise and approval from other
bankers.
AS a matter Of record, criticism
from bankers, at least some bank
ing groups, has been directed at any
departure from established custom,
that is, custom and practice estab-
lished by the bankers themselves.
For instance, some banking groups
criticized bank deposit insurance.
Criticism was aimed at government
guaranteed loans on homes and
farms; at 20-year loans on homes
when the custom had been 3 to 5
years; at A and per cent interest
rates, when the practice had been
6 to s per cent and higher. These
practices today, however, are an, ac-
cepted part of our domestic econ
omy.
Criticism from the larger interna-
tional bankers has been directed at
the Breton Woods proposals, no
doubt because governments will con-
troll fiscal and monetary policies on
an international scale, and also be-
cause interest rates under these pro-
posals will be lower.
q. s. Benefits Most.
Another criticism has been direct
ed at the bank and the fund because
the United States is the largest sub
scriber. It is argued here, however,
that from any fair standard, this
country should be the largest SUBJ
scriber because we have more to
gain than any other country. We
have the money to lend, we have
a large part of the worlds gold and
we have the facilities no other ma
ton has to provide export goods in
the immediate postwar period. Last
ly, we have been untouched by the
ravages of war insofar as our ma
terial wealth is concerned.