Evening star., 1945-07-16
Wagner Praises
MonetaryPIdn
|AsPeaceAid
Senate Opens Debate
On U. S. Participation
In BRETON Program
By J. A. OLFARY

1ne bretCon WoodS world
monetary agreement offers a
chance to outlaw economic
warfare" and thereby give
greater effect to the United
Nations Charter in preserving
peace, Chairman Wagner of the
Banking Committee told the
Senate today as he opened de-
bate on the financial pact.
Within the next few days we
must consider the San Francisco
Charter and determine whether the
United States will cooperate with
the other United Nations in political
and military matters" Senator
Wagner began. ITO give greater
effect to that solemn understanding
it is fitting that we lay firm foun-
dation for peace, that we inform the
world that we stand ready also to
cooperate in international economic
matters"
Two Major Features.
Forty-four nations met last sum-
mer at Breton Woods, N. H, and
worked out the plan, which has two
salient features:
/. An international stabilization
fund of $4,000. 900 900, of which the
United States share is s2,750, ,000, 900,
to pave the way for standards Of
fair currency exchange practice.
g. An international bank with
authorized capital of $40 900, 900 10000,
of which the United States share is
$3,175, 100000 to guarantee private
| foreign investments, and to make
some direct loans to help war-torn
nations get back on their feet.
Senator Wagner said ''the failure
to provide a means for international
monetary cooperation in the 192os
is one cause of the monetary disor-
ders of the 1930s, which set nation
against nation in the struggle for
economic survival, and which be-
came the economic prelude to the
great war"
Early Passage Expected.
Four minority members Of the
Banking Committee. led by Sena-
lOI d1l, IICPdDI1Idl1y O4 OA1AO WILL
oppose the Breton Woods bill, urg-
ing its postponement pending a new
international conference, but the
measure is expected to pass by a
substantial majority by Wednesday
or Thursday.
After the last war, Senator Wag-
ner said, each nation tried to get
he enlI cfo ov1d Sf q niIi2n
its currency, acting alone.
"As a consequence of this method
of dealing with problems which are
by their very nature international,
some currencies, stabilized with
great difficulty, soon proved to be
over valued, while others were un-
der valued" the New York Senator
continued. In countries with over
valued currencies, exchange rates
were under constant pressure. The
effect was to increase the difficulty
of maintaining exports and employ
ment in those countries.
In a vain effort to maintain the
established value of those curren-
cies, countries put pressure on their
domestic wages and prices, inducing
depression at home and reducing
the demand for both domestic and
imported goods. Business condi-
tions in other countries were af-
fected since weakness in a major
currency is source of danger to all
currencies."
Serious Problems Faced.
Senator Wagner reminded his
colleagues that I'VE now stand at
the threshold of another postwar
period" and added:
During the past six years world
trade has been virtually at stand
still; political boundaries have been
reshufded, large producing and
trading areas destroyed. AS this
war has been more devastating than
the last, so the international cur
rency and investment problems we
face are more serious than we have
ever before encountered. The ques-
ton before us is whether by de-
fault we will allow the world to re-
peat the tragic blunders of the
l820s and 1905.
This bill offers us the oppor-
tunity to initiate constructive steps
to outlaw competitive currency de-
valuation and other economic war
fare devices, to substitute co-opera-
ton for unilateraf action in dealing
with international problems"
The Banking Committee chairman
answered opposition arguments in
his opening speech, including some
raised by Senator Taft last week.
He said:
1T has been alleged that the fund
will not solve the British problem,
(See BRETON WOODS. Page A-3o