REPARATION EXPERTS

Hokitika Guardian, 11 March 1929, Page 5

REPARATION EXPERTS

REPORT ON PROPOSER BANK

(United Press Association.—By Electric Telegraph .—Copy right.)

(Received this day at 8 a.m.) LONDON, March 9

The Reparations Experts Committee lias issued tlub first communique since opening its meeting. It is a long and important statement regarding a plan at present being discussed for a new international bank but the scheme is tentative and liable to rejection, either partly or wholly. The statement explains, experts believe the filial settlement of reparations necessitates peace-time machinery, replacing the war-time machinery. The proposed bank would primarily be a trustee, receiving and disbursing German annuities by which means it would facilitate transfers, and also finance deliveries in kind, and become an intermediary between interested Governments and issuing banks for marketing bonds which might be issued for the commercialisation of German annuities, i lie bank would co-operate with existing banks, receiving, if required, both clearing and investment deposits. Banks with normal large holdings of foreign exchanges would be enabled to become a useful exchange reservoir for existing central banks, with which they would closely co-operate, but would strictly avoid competing. Commercial investment banks would indeed subordinate their activities in any particular country to the policy of the mitral 'bank. Its operations would tt-nd to strengthen co-operation, which already developed between central banks and which lias done such marked service in restoring the gold standard throughout the world, and otherwise stabilising financial conditions. The management of the bank must be nonpolitical, with a experienced international directorate, aided by advisory committees in offices situated in one of the smalled countries, where a suitable legal status could be maintained. The bank would probably be equally advantageous to debtor and creditor nations and enable Germany to stand on her own feet financially, with the responsibility of maintainng her own emit bank, and also assist tlie Reicblnuik and other central banks to maintain stability of exchanges, thereby steadying business conditions. It would also facilitate an uninterrupted flow of annuities, ami the commercialisation of the German debt. Creditoi nations would participate in the profits which the bank might reasonably expect to earn in filling existing matter in tlie world’s banking organisations, particularly those resulting fiom tlie situation created by the reparations debt settlements.

Tt is expected the discussion next week will clarify the project and'enable the committee to decide whether to proceed with the plan or postpone it for further consideration.