Evening star., 1948-09-28
World Monetary Fund
Report Calls for Steps
To Curb Initiation

The World Monetary F'und TO-DAY
called on nations suffering from in.
f1ation to cut expenses, keep taxes
high and aim for budget surpluses.
The warning was delivered by Ca
mile Quit, managing director Of
the fund in the annual report o1
the international organization. He
presented it at the third annua,
Joint sessions of the World Bank
the World Monetary Fund at the
Shoreham Hotel. ~.
World recovery plans. the report
pointed out, may be frustrated,
unless many of its member govern
ments balance their budgets and
take other anti-ipf1ation steps.
The report followed declarations
yesterday from several official
sources that both the World Bank
and the Monetary Fund have done
we'll, under the circumstances, but
that they have faced critical condi-
tions, which have prevented
achievement of stability.
New Crisis Cited.
Mr.. Quit, in a press conference
late yesterday, admitted the cur
international crisis with Russia un-
questionably would make operation
of the fund more difficult.
Following the open session this
morning for presentation of the an
nual report, closed committee meet
ings we're scheduled, Tomorrow
morning. John j. McCloy, president
of the World Bank, will present the
third annual report to the bank S
Board of Governors at an open
meeting. Sessions will continue
through Friday.
Report Presented.
Today's report was presented to
representatives of Al member ma
tions of the fund. Russia is not a
member. Siam, Liberia and PAX
istan are applying for admission.
The fund report called particu-
larly on nations in Europe, the
Western Hemisphere and the Far
East to aim for budget surpluses
The fund also advised them to
guard against increases in their
money supply and encourage saw
ings by all appropriate measures.
The necessity for dealing effec-
lively with imitation was linked to
the need to sell to the United States
and other Western Hemisphere
countries. Nations in which infla-
ton gets out of hand, the fund
pointed out, will have increasing diff
f1culty in offering goods at prices
attractive enough for Western
Hemisphere markets.
Truman Sends Message.
President Truman, in message
to the opening joint session yester-
day, praised the fund and bank for
having made notable progress to-
ward attaining their objectives." "
This had been accomplished, he said,
although they have operated un-
der conditions which were not en-
tirely favorable to their realization" !"
Conditions of word finance are
still far from the norm envisaged
at the Breton, Woods Conference"
he said.
The Presidents message was read
by Treasury Secretary Snyder, who
declared that "the political uncer-
tainties of the period have con-
tributed to the difficulties of inter-
national finance and investment"
Sir Stafford Cripps, British Chan
cellor Of the Exchequer, who is vice
chairman of the joint boards of
governors for the fund and bank
told the gathering the international
and economic picture of the world
is mot what had been anticipated
by the creators of the, fund and
bank"
Among others who spoke at the
plenary session were Wang Yum
WI, Minister of Finance of China
and chairman of both boards; Sa-
kari Tuomioja of Finland and DR.
Manuel Noriega Morales of Guate
mala.