Evening star., 1953-09-11
Mr.. Black and the World Bank

Eugene r. BLACKS re-elect1On as president
Of the World Bank-formally known as the
International Bank for Reconstruction and
Development fitting reward for
the good work he has already done in that
position In effect, the reward adds up to
resoundng vote Of confidence in him not only
by the 55 member nations but also by the
Eisenhower administration, without whose in
dorsement he could not have been named to his
second hve-year term which will begin next
July /.
This expression of confidence certainly has
been well-earned For the bank under Mr..
Blacks direction, has matured into one of the
most effective of the worlds cooperative insti-
tutions. Although only seven years old, and
despite being the first enterprise of its kind
in history it has long since won strong backing
In both private and public financial circles here
in the United States and abroad. The secret
of its success in that sense rests primarily In
the fact that 1t has adhered to strict banking
standards Indeed, according to critics who
want 1t to become more VentureSome, 1t has
been conservative to fault.
However, along with most members of the
governing board, Mr.. Black has found prudence
essential, and he has left no room for doubt
that 1t will continue to govern the institutions
operations. Thus, in addition to charging in
terest rates and requiring principal repaymentS
within fixed periods of time the bank makes
no loan without first sending out special field
missions to determine the economic justifca-
ton and technical feasibility of the project in
Volved. Further, after it grants loan 1t
follows close supervisory procedure to insure
that the money is properly and efficiently spent.
This may not please some people, but it has
the virtue of preventing foolish or fiy-byn
ventures that would be harmful alike to the
hank and the borrowing countries
In keeping with these and similar stand
ards, the bank-WhoSe governors are now
meeting here with the governors of the Inter-
national Monetary Fund-haS advanced, since
1946, a total of bit more than SIS billion
in loans. These loans, as set forth in the
eighth annual report which Mr.. Black has
Just submitted, have gone out to % different
countries-$734 million to Europe, 1857 million
to the Western Hempisphere, $187 million to
Asia and the Middle East, $3.50 million to
Australasia and $132 million to Africa. Most
of the funds have been in the form of gold
or American dollar credits, but Swiss francs,
pounds sterling and other foreign currencies
have been advanced in increasing measure
within recent years. The chief purpose of the
lending has been to build up electric power,
TRANSFORMATION, communications, agriculture,
industry etc, in order to promote economic
progress in underdeveloped areas and to bring
about a general betternent of living standards.
OF course, measured in relation to past
emergency undertakings like the Marshall Plan,
the World Banks operations have been and still
are small. Nevertheless, running its own kind of
Point-Four Program, the bank undoubtedly has
done much to stimulate economic gains in many
regions of the globe.
True enough without freer international
trade of the sort called for by Mr.. Black in his
address Wednesday. the best efforts of the World
Bank or any comparable agency will be woefully
inadequate. However, assuming that interna
tional tariffs will be decreased rather than
great deal more-from year to year and decade
to decade-as a permanent enterprise designed
to improve the lot of mankind by encour-