TOO BIG RUN ON INTERNATIONAL MONETARY FUND

Grey River Argus, 8 November 1949, Page 5

TOO BIG RUN ON INTERNATIONAL MONETARY FUND

U.S.A. Obliged To Look to Its Solvency (Rec 9.0) WASHINGTON Nov 6 The International Monetary Fund under pressure from the United States, is tightening up its dollar aid to the member countries. Diplomatc sources here said that the United States proposed that thte fund should in future, obtain a specific date for the repayment of its advances from any country applying to it for dollars. The United States also is emphasising the need for repayment to be made as promptly as possible of those funds which members have already withdrawn from the fund. The aims were (1) To make the fund a truly revolving one so that the currency collections from any one nat on shall become available for use by another. (2) To ensure that the fund wjll have the resources in 1952 to step into its intended role as a ready source for the currencies that 'are intended in foreign trade. This would replace the Marshall aid grants tc the members, countries and others. It is understood that no formal action has been taken by the fund, but that none is needed. The United States’ voting strength on the board is considered to be sufficient to give the United States a virtual veto over any proposed dollar outlays. The fund /vjlais three years ago, as an international currencies pool, but it has become largely a channel for the exit of dollars to the members. There have so far been 737,300,000 dollars withdrawn front the fund. Out of this; less than two million five hundred thousand dollars has been repaidThe fund does not lend currency it is sold. Britain obtained three hundred milion dollars in 1947. She repaid into the fund an equivalent sunt in pounds. When she repays the 300 million dollars she is to buy back her pounds with dollars.