International Monetary Control

Extract

The signing by forty-four nations at Bretton Woods, N.H., on July 22, 1944, of articles of agreement for the establishment of an International Monetary Fund marks the third stage in the process of setting up an organization which is intended to control international exchange operations after the war. The first stage was initiated by the publication by the British Treasury of Baron Keynes's scheme for an International Clearing Union concurrently with the publication by the United States Treasury of the draft outline of a plan for a United and Associated Nations Stabilization Fund prepared by Dr. Harry White. These were made available to the public on April 8, 1943. Subsequently in June of 1943 experts of the Canadian Government issued a third plan for an International Exchange Union. A revised edition of the American plan appeared July 10, 1943. As collateral to these proposals in October, 1943, the United States Treasury released a text entitled, “Guiding Principles for a Proposed United Nations Bank for Reconstruction and Development.”

All these schemes were at once subject to a critical examination by monetary experts in the United States, Great Britain, and Canada. Meanwhile negotiations were being carried on in Washington with a view to ironing out the differences revealed between the British and American point of view. Experts from other countries in time entered into these discussions. In the end by mutual concessions substantial agreement was reached upon the main points under consideration. With the putting forward in Washington on April 21, 1944, by the monetary experts and treasury technicians of thirty-four governments of a plan covering their tentative conclusions, the second stage was reached and the way cleared for a definite step forward to be attempted.