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Show 1 1 1 THE BEAVER PRESS. BRAVER. UTAH Rrfiffon Woods Confprpnrp Fomfable j U. S. Postwar Exports I Depend on Soundness Of Foreign I International Monetary System -- u... TOWWWIMWI.. U " v if i xi! Finances By WALTER A. SIIEAD VVNU Staff Correspondent. J-- r?'7 Stripped of all technical verbiage, the proposals agreed 44 Ruin of War Making Delayed Visit to Germany air! fi United Nations at V ;x"-i- i - x ;.". iVw T; .4 upon by the Bretton Woods conference and which are considered an essential part of the world peace plan to be approved at San Francisco April 25, are designed to l.Sct up an international monetary fund with a working capital sub- i i ; w v v f; x a scribed by 44 nations in gold and member currencies totaling 8.8 bil lion dollars of which We United States is to subscribe 2.75 billions. This fund is expected to stabilize id v " xx i y 1llx 4 i ,tLz&WVinh$ TjXSto.-- m 'wr-x,,.- , safeguard the value of foreign currencies in terms of gold, remove trade barriers in favor of open or e reciprocal trade agreements to pro-Tid- free and open trade among member nations. Organize an international bank and development capital of 9.1 bilwhich the United States is to furnish 3.175 billions. Purpose of tbe bank is primarily to facilitate flotation of foreign loans in private capital markets by providing international guarantees and to make long-tercapital loans dirept to member nations for specific projects of reconstruction and developfor reconstruction with a subscribed lions of dollars of m ment. Why the need for these safe- guards? Following World War I American investors took a beating, and in the late 1920s were caught in an epidemic of defaults by foreign Under the Bretton Woods debtors. i proposals, these foreign loans would be Rom, investigated by the bank and then guaranteed as to principal and interest by the foreign government and the bank. Risks then, of international loans, would not fall on inI vestors themselves, nor even on any one country, but upon all of Obviousthe 44 member countries. ly the objective of this guarantee of loans is to encourage a substantial volume of private international investment which is essential to our own economic well being. Great Need for Rebuilding. France, Italy, Norway, Poland, Finland, Czechoslovakia, a large area of Russia, the Balkan nations, large sections of England, China, much of India and Burma, plus the Axis nations of Germany and Japan, have been laid waste by the war, their productive facilities prostrate, their currencies depreciated, and many years will be required for them to rebuild their export industries. They will require foreign capital to get under way. In our own country we have a tremendously enlarged productive industrial plant. Our agricultural production has reached a new high of efficiency. After the war our economic policy will be aimed at full employment and full utilization of our agricultural and industrial facilities. To realize these aims new outlets for the products of farm and factory must be found and these prostrate foreign countries provide a ready market providing that American exports take the form of American investments abroad good American dollars for if these nations are to buy a large volume of our productive machinery, our industrial and agricultural products in the immediate postwar period, American investors will have to lend part of the purchase money. Under the functions of the International bank, these investors will have the assurance that these investments are sound and remunerative. Under the operation of the monetary fund, as distinguished from the bank, for the protection of our investors, currencies in all these countries must be stabilized in terms of jold and at equitable rates of The United States holds 60 Prr cent of the world's gold supply. Economists point out there must be 'imination of exchange fluctuations, f discriminatory exchange practices, of competitive currency depreciations, if the American dollar is t be protected. For instance, how can the American farmer be protected in the orld market if a sizable wheat producing country such as Russia and Argentina can resort to monetary action which places the wheat producers of those countries in a preferred position with respect to Amer-ca- n wheat exporters? If the American farmer is to continue to export wheat op any other commodity, and Jo receive a fair price in good Amer-- n dollars for-th- e he sells t home, he must product know that the During a lull in the proceedings of the Bretton Woods conference, Secretary of the Treasury Henry Morgenthau (center) got into Informal conversation with the Hon. J. L. Ilsey, minister of finance for Canada and chairman of that nation's delegation (left), and M. S. Stepa-nochairman of the Russian delegation. These chats helped to iron out many of the smaller problems. V. S. v, world price of wheat or other commodity in terms of our own dollars, will not be seriously disturbed by large fluctuations in the principal exporting and importing countries. Stabilized Currencies. So the purpose of the international monetary fund is to stabilize and promote a balanced growth of international 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 a member country may apply for the assistance necessary to enable it to maintain stable and unrestricted exchange relationships with other member countries. For instance, in some countries Importers are not permitted to purchase dollars required to buy goods in the United States. In other countries, of which Germany was an example before the war, foreign trade was disrupted by use of multiple currencies, or barter arrangements, and during the war many new restrictions have been devised because of military necessity. The operation of the monetary fund is intended to remove all these restrictions and set up a standard and uniform practice, currency value and exchange rates so that American business may have the greatest possible freedom in international trade in the postwar era. Tbe same freedom Is intended to be provided for business in the other countries, for freedom of business would be meaningless unless these other countries accorded an equal measure cf freedom to their own people. There has been criticism aimed at these proposals from some bankers 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 banking groups, has been directed at any denarture from established custom. that is, custom and practice estab lished by the bankers themselves. For instance, some banking erouos criticized bank deposit insurance. Criticism was aimed at government guaranteed loans on homes and loans on homes farms; at when the custom had been 3 to 5 years; at 4 and 5 per cent interest rates, when the practice had been B to 8 rer cent and higher. These practices today, however, are an ac cepted part of our domestic econ omy. Criticism from the larger international hankers has been directed at the Bretton Woods proposals, no doubt because governments win control fiscal and monetary policies on an international scale, and also because interest rates under these pro posals will be lower. U. S. Benefits Most. Another criticism has been directed at the bank and the fund because the United States is the largest subscriber. It is argued here, however, that from anv fair standard, this country should be the largest sub scriber because we have more 10 We gain than any other country. have the money to lend, we have a large part of the world's gold and we have the facilities no other nation has to provide export goods in Lastthe immediate postwar period. the untouched by been ly, we have maravages of war insofar as our terial wealth is concerned. F"T "y'N. One of the most important groups to give approval to Bretton Woods proposals is the Committee for Economic Development, headed by Paul G. Hoffman, president of the Stude-bakcorporation. This group, made up of bankers, economists and business leaders would even give the in- er ternational bank further power to make loans for long-terand short-terstabilization purposes, claiming that under the present regulations, the bank does not have that clear-cu- t power. There have been some suggestions favoring the establishment of the bank, but suggesting that setting up and operation of the monetary fund be delayed until conditions abroad settle down to normality. It is pointed out, however, that the bank and the fund are closely related, both in concept and organization and that membership in the bank is open only to those who are members of the fund. It is also pointed out that the bank is, to a considerable extent, dependent upon the fund for the reason that the fund must first establish values of the moneys to be loaned by the bank if there is to e be a smooth planning and investment program. While most sound economists agree there must be some system of international control or agreement after the war, the only alternative offered has been a system of bloc agreements. These are regarded by many as dangerous, since such bloc agreements likely would lead to a world divided politically and ecoEventual conflict benomically. tween these groups would be likely. Chance for Leadership. Pointing to the leadership the United States has maintained during the war, fiscal experts here declare that never before has this nation occupied such a key position or had such an opportunity to take over world leadership in the economic field. Governmental leaders, including Secretary of the Treasury Henry Morgenthau, look upon the Bretton Woods agreements as just as essential to world peace and security as the Dumbarton Oaks agreements. Secretary Morgenthau maintains they are inseparable. Hence his urgent appeal to the congress for legislation which will 'insure this nation's participation prior to the world parley at San Francisco April 25. Acceptance by the congress of these agreements before convening of the delegates of United Nations at San Francisco, these leaders say, would be taken as a happy augury of this nation's sincerity. It would give notice to all that the United States, instead of choosing economic isolation, which would inevitably lead to political isolation, is already on record with a determination to do our part toward the attainment of world peace and security. In a special message to the congress February 20, President Roosevelt, referring to the Bretton Woods proposals, said: "It is time for the United States to take the lead in establishing the principle of economic cooperation as the foundation for expanded world trade. We propose to do this, not by setting up a supergovcrnment, but by international negotiation and agreement, directed to the improvement of the monetary institutions of the world and the laws that govern trade . . , the international fund and bank together represent one of the most sound and useful proposals for international collaboration now before us." And that is what the Bretton Woods proposals are designed to do . . . a product of the best minds of the 44 United Nations of the world. The result of the Allied bombardment birthplace of Beethoven, also meets the advance through the city. Inset shows many. Reports indicate that all cities in or Cologne, Germany, is shown by photograph at right. Bonn, the of other German cities, as shown at left, as American troops the bombed Adolf Hitler bridge across the Rhine at Uerdingen, Gerpath of advancing Allies are in complete ruins. fate Policemen Attend School to Become Stork's Aides J p:o f m I i - , v l. i" - i i x .1 x-- --x- long-rang- The job of protecting the citizens of their communities seems to be an one for members the police force of Nassau county, New York, who have been Indoctrinated as obstetricians by the public health nurses. Now they know just when and how to drop the argyrol into the eyes, how to keep ever-expandi- of new-born- the infant from strangulation, 's how to handle the umbilical cord problem. Army Bridges Around the World New Dies' Counsel ? f, "ni'jv'-ijt - 4 a r J I "i . I i The original bridge shown In upper photograph was demolished by bombers of the U. S. army 10th air force since the Japs captured Burma road in 1942. Iontoon bridge is erected as the Allied offensive ncars the key Japanese supply terminus of the road. Lower, shows trucks crossing pontoon bridge spanning Rhine river. Attorney Ernie A damson of Pittsburgh, who has been named as chief counsel for the house committee on activities. He formerly practiced law In New York City. Adamson will assume his new duties immediately, on part time basis. Big Top Will Soon Be in Town Lloyd George Dead f WW r tf r -- n Dr. n. II. Kung, minister of finance for China and chairman of the Chinese delegation, talks over inLord finance with ternational Keynes of England, famed economist and monetary authority, who i heads the British group of delegates. Chinese currency has been devalued by Inflation, a result of the long war with Japan. British bankare looking up for the big shows as pretty Juanita Dcisler ers are concerned about Chinese nd Things Paul Jerome relax for a moment between rehearsals on the flying financial stability, not only as part The circus begins its annual springtime engagement at Madison of the world monetary situation, .rapeze. and after May 20, Ringllng Bros, and Barnum It Bailey Garden, Square but because of the extensive British take a tour of cities of America. business interests In China. life. ; ft V, t f r&t W David Lloyd George, 82, Britain's leader In World War 1, died recently at his home in Hales. He was former prime minister of England. 54 years In Commons, and recently became an earl |