Evening star., 1945-07-20
BY J. A. O'LEARY.


to the President to be signed.
BY ]. A. O'LEARY.
Congress today paved the way
for the United States to become
the first nation to adopt the
Breton Woods plan for world
cooperation in solving financial
problems.
The final step came when the
House unanimously accepted three
minor changes made by the Senate
before it passed the bill last night, 81
to 16. The House previously had
voted, 345 to 10, in favor of joining
with 43 other countries to stabilize
world currencies and to eliminate
other economic causes of war.
The bill will be dispatched
promptly to President Truman for
signature.
Bank Expansion Taken Up.
Meanwhile the Senate prepared
to pass later today a related bill
increasing the lending authority of
the Export-Import Bank by $780,
10000 to So, 500, 900 900 to make loans
designed to stimulate America S
foreign trade during the months
still required to get the Interna-
tional Bank established under the
Breton Woods plan.
The Export-Import Bank bill Is
the only major measure remaining
to be passed before House members
leave tomorrow for an 1l-week re-
cess.
The Senate will remain in session
until early in August to ratify the
United Nations Charter, thereby
completing all major elements of
the program for a lasting peace.
The first of these was the reciprocal
trade agreements law. The Charter,
being a treaty, does not require
House action.
The world fund agreement drawn
up at Breton Woods, N. H., last
summer, sets up a $9,l00, ,000, 900
international bank and an $780,
000,00 currency sterilization fund
to provide orderly settlement of the
worlds financial problems, just as
the Charter will seek TO settle other
differences that might lead to war.
Serve Dual Purpose.
Loans made by the Export Import
Bank are designed to serve the dual
purpose Of stimulating this country's
foreign trade and helping the Euro
pean countries to get back on a
peace-time economy.
Testimony before the Senate
Banking Committee indicated the
credits would be used to enable the
other nations to buy from this coun-
try the products and equipment
they need for reconversion.
Once the Breton Woods agree
meTt has been ratified by the re-
quired number of nations, they will
be able to go to the international
bank for such financing of foreign
trade, but this may take from IL
to 18 months The chief function
OF the bank will be TO guarantee pri-
vate loans, but it also may extend
some credits directly.
Second of Three Moves.
The separate currency stabiliza-
ton fund is intended to stimulate
world trade by dealing with the
problems which grew out of currency
exchange values.
Republicans, with only a few ex-
ceptions, are expected to support the
Charter, but they divided sharply
over Breton Woods. Nineteen
COP Senators Joined with Al Demo-
Gratis and l Progressive in support
of the financial pact, while IA Re-
publicans and Democrats voted
against it.
Senator Taft, Republican, of Ohio
led an~ unsuccessful four-day fight
to place limitations on the bill, or
to postpone its consideration until
fall. Majority Leader Barkley held
a safe majority in line against all
changes with the warning that
alterations would endanger ratifica-
ton by the required number of
countries.
Taft Proposal Defeated.
Senator Tafts final effort yester-
day was in behalf of an amendment
under which no nation could use the
currency stabilization fund unless it
abandoned wartime restrictions on
its foreign exchange, such as the
British sterling bloc area. He was
defeated, however, So to %.
Senator Ball, Republican, of
Minnesota, although a supporter of
Breton Woods, tried without sue
cess to put through modified
version of the Taft amendment.
Instead of direct change in the
plan itself, Senator Ball proposed
merely that the American repre-
sentative on the board of the stabil-
ization fund be directed to ask the
board to adopt an amendment re-
quiring the elimination of currency
restrictions after the plan has been
operating for three years. He
argued that II a nation has not
stabilized its economy In three years
sufficiently to drop currency dis
ordinations in foreign trade, 1t
should not use the fund until they
are eliminated. The Ball motion
was beaten, 46 to 29.
Senator Taft's final effort to have
the bill sent back to committee for
elimination of the international
bank was rejected without roll call.