WORLD BANK

Dominion, Volume 37, Issue 254, 24 July 1944, Page 6

WORLD BANK

Russian Subscription Increased

COMPLETE SUCCESS OF CONFERENCE

(By Telegraph.—Press Assn.—Copyright. • ((Received July 23, 10 p.m.) NEW YORK, July 22.

The Secretary of the Treasury, Mr, Morgenthau, announced at a State dinner at Brettou Woods that Russia had agreed to subscribe 1200 million dollars to the world bank instead of 900 millions. This would probably mean that the other quotas would be changed. The United Press of America says that Marshal Stalin’s message accepting the higher figure was a welcome surprise, delegates cheering loudly. Almost simultaneously it was announced that Australia was the only nation holding out, but that she would sign documents for the international fund and the banjt. This, according to officials, makes the conference a complete success. Officials had been perturbed over the Australian delegation’s aloofness. The Australians had intimated that they did not have their Government’s authority to sign either document- . The conference had agreed on an initial capital of 8,500,000,000 dollars for the World Bank for Reconstruction and Development, made up as follows: —United Stales, 3,175,000,000; Britain, 1,300,000,000; Russia, 900.000,000; China, 000.0(10,000; France, 450,000,000. Russia won a victory by being., placed third, thus strengthening her voting. The New - Zealand ami Australian quotas are unchanged at 50,000,000 dollars and 200,000.000 dollars respectively. The “New York Times” says that the conference, which ends tomorrow, accomplished two vital parts of its programme for ensuring world peace and prosperity by unanimously accepting the Inter-, national Bank aud Fund, the plans for which are subject to' the approval of participating Governments and the. United States Congress. No difficulty is expected in obtaining the approval of Congress. according to members of the United States delegation. Broad Programme.

Addressing the concluding plenary session of the conference, Mr. Morgenthau said that the successful completion of tlie conference was only one step in a broad programme of international action necessary for shaping a free future. “We have devised machinery with which men and women everywhere can freely exchange goods on a fair and stable.basis,” he said. “The monetary fund will provide for reasonably stable standard international exchange rates, while the bank provides aid at reasonable rates for nations devasated by the enemy.” He added: “Tlie operation of the fund is the alternative to competitive currency depreciation, excessive tariff barriers, uneconomic barter deals, multiple currency' practices, and unnecessary exchange restrictions.” The leader of tlie British delegation. Lord Keynes, in a broadcast, expressed confidence that the capital of the Bank for Reconstruction and Development would not full short of £2,000,000.000. The aim was eventually to attain £2,500,000,000. “J will not say that the establishment of' the bank is more important than the monetary fund, but perhaps it is more urgent,” he said. “UIN.R.R.A. will provide the funds necessary for relief and rehabilitation in the days immediately following liberation, but it will not provide final and permanent reconstruction and restoration of industry and agriculture. To fill this gap is one of the main purposes of the bank. The other main purpose is the development of the less developed areas of the world in the general interests of standards of living, conditions of labour and expansion . of trade ‘everywhere. The capital envisaged should be adequate for all proper requirements for some time to come. Some Novel Principles. . “Tlie bank will have some novel principles. In the early days after the war, only a few countries, and chiefly the United States, will have the necessary surplus resources available to invest overseas. It is up to the rest of us to stand behind the credit of devastated and undeveloped countries and lake each, our share in guaranteeing the lenders from ultimate loss. There are many careful provisions to guarantee against excessive' loss, but lie whole World must join in n mutual credit insurance pool to shoulder the risks private investors might be unwilling to run, with future prospects so uncertain and precarious.”