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COUNTRIES ON THE GOLD STANDARD, 1921-1938 Number of Countries Number of Countries Aust* Bol. Can. Cdom. Czech. Den. Going off Gold Standard Mex. N.Zea Nor. Port. Salv. Swed. UK. Yu Port. Chile Cost. Ecua Peru Roura* Afr. Austt Danz. E Fin. Hung. Neth N.Zea Ger. i Guat. Uth. Pol. Cuba , " w j r m Bel DoraR/Cuba\ Danz: Hond.fDomR; Pana.fcHond Pana. US. Going on Gold Before'22 '23 '24 '25 '26 '27 '28 '29 '30 '31 '32 '33 '34 '35 '36 '37 '38 '39 '40 * Established exchange restrictions US. Production and Export of Wheat Cotton, Tobacco and Lard Annual Average 1925-'28 and 1931-34 (MILLIONS OF DOLLARS) , WHEAT **"*%•» Production^ 1925-28 1931-34 *36 "N53 (24%) M-IOO INTERNATIONAL MONETARY FUND-CHARGES BY THE FUND All charges payable in gold If monetary reserves of -—• member are less than half its quota, charges are payable in gold in same proportion Balance payable in currency. 1 . Foreign exchange purchased from Fund with Members Currency 2 . Foreign exchange purchased from Fund with Gold Additional charges payable by a country on Fund's holdings of its currency in excess of its quota (average daily balance) Failing agreement, on reaching 5% Fund may impose such charges as it deems appropriate. At 4%, Fund and country must consider means of reducing Funds holdings. Amount in excess of quota as % of quota* 0 - 25 25 - 50___. 50 - 75 75-100 Percent per annum on amounts in excess of quota 1st Year After 1 3rd Year 4th Year 5th Year 1 \V% 2 114 2 zVi 3 2H 3 3H 2nd Year u 2 2 ZYi 6th Year 7th Year 2H 3 3H 3 3H zlA 4H] 4J41 On additional amounts, the Fund may set such terms and conditions as it deems appropriate. *Pro¥ided increase does not exceed 25 percent of quota in any one year. 8th Year INTERNATIONAL MONETARY FUND-OPERATIONS IN FOREIGN EXCHANGE Countries whose OUT-PAYMENTS Excted IN-PAYMENTS for international transactions, but do NOT PURCHASE exchange from the Fund. Countries whose OUT-PAYMENTS exceed IN-PAYMENTS for international transactions and PURCHASE exchange from the Fund. Countries whose IN-PAYMENTS exceed OUT-PAYMENTS for international transactions. Own reserves of gold and foreign exchange Own reserves and foreign If not declared ineligible, moy purchase currencies from the Fund for current needs and thus avoid exchange depreciation and exchange control Must repurchose own currency from the Fund until reduction in reserves equals increase in Fund's holdings of its currency. One half of increase used to repurchase own currency from Fund. GOLD AND CURRENCIES OF FUND GOLD Countries purchase currencies from the Fund with gold, and pay charges in gold. Used by Fund to purchase scarce currencies with gold. Amount purchased with own currency may not exceed 2 5 % of quota during year and Fund's total holdings of a currsncy may nor enceea quota by 100%. V- CURRENCIES Countries purchase other currencies with their own currency. \ The Fund may declare a country S t l f t t g p for following reasons I. Change in f t * par value of Its currency despite the objections of the Fund; 2.Malntenonce of restrictions inconsistent with the purposes of the Fund; 3.Use of the Fund* resources to meeto largo or sustained out-flow of capital; 4.Use of Fund's resources In manner contrary to purposes of Fund; S.Faikirt to fulfill obligations under this Fund may also postpone exchange trans** actions if they would lead to use of r e sources In manner contrary to purposes of Fund. International Bank For Reconstruction And Development LOAN OPERATIONS I. Relationship Between Borrowers and Investing Public II. Use of Borrowed Funds BORROWERS Borrowing Borrowing Governments 11 Corporations FUNDS BORROWED ; If ban obtainable on reasoni j able terms from investors. Bank \ I does not handle ban. ! I If ban not otherwise obtain; able the Bank may guaran- , [tee or make ban ! Guarantee of Govt or Central Bank BANK LOAN COMMITTEE Investigates Loan LMust be for specific pro- 3.Terms of loan reasonducttve project. able and appropriate 2. Borrower and country 4. Loan not obtainable in can service loan. GUARANTEED LOANS DIRECT LOANS Bank will make arrangements to e n sure that proceeds are used only for purposes for wnion loan was made. Bank .will open an account and borrower may draw on account to meet i SOURCES OF FUNDS Paid-in tital Funds borrowed by Bank from Investors Guaranteed by Bonk Arrangements to assure economical. use of funds Securities of borrower may be resold to public Guaranteed securities sold to public I Bank will impose no conditions requiring expenditure of loan in any particular member country. The Increase Of Clearing Agreements' In Europe Number of Agreements to5 SITUATION IN 1932 * Includes payment agreements SITUATION IN 1938? ^As of January 1938 International Bank For Reconstruction And Development ORGANIZATION AND MANAGEMENT BOARD OF GOVERNORS Powers ReservedtoBoard Membership i ~~ Cooperation with Fund, Security Council and other International , organization*. 4 4 Members-I from each country, 5 year term. Voting-Each Governor casts 2 5 0 votes plus I for each share (see voting schedule below). Nieeiings~ Annual ana omer mserings which may be colledjy the Board and the Enecutive Dysctors. 1. Admit new members. 2. Increase or decrease capital. 4 Decide appeals on Agreement. 5. Arrange cooperation with other international organizations. 6. Suspend operations of Bank. 7. Distribute income. Advisory Council 7 or more representatives Banking, Commerce, Industry,taborand Agriculture, Meets annually and when Bonk requests. EXECUTIVE DIRECTORS Membership: 12 Members - 2 Yeor Term OFFICERS AND STAFF 5 Members, I each appoinled by U.&, UK, U S S R , China, and France. 7 Members elected by Governors of other 39 countries, each casts votes that elected him, Av. number 4 7 8 6 . C President serves as choirman of Executive Directors. Board of Governors Regional Councils representing areas PRESIDENT Loan Committees OFFICERS AND STAFF Regional Councils representing areai Other Committees | l Officers ond Staff | | | VOTES £250 2300 -320 .1300 3300 Dominican Rto. Ecuador! Egypt El SolvodorEthiopia Fronct Guottmoki Hotti Honduros 2 7 0 tndia_ -4.250 2 8 2 lron_ —490 J 6 5 0 Iraq. 2 6 0 Libsfi<i 255 2 6 0 LuMmbourg 350 4,750 Mexico 900 5 0 0 Ntfntrkmds .3000 2 7 0 Ntw Ztolond,.^--750 2 7 0 Itfcaroguo— 258 2 6 0 Norwoy 750 260 Ponomo To4oUO£,000 252 P«ru__ Phflippint Com -258 425 Regional Office 400 j Poland 1^00 Union of SAfr__J ,250 US.&R. IZ250 Unit«dKingdom_J3£5O United States--32XXX) 355 ! OFFICERS AND STAFF Regional Councils representing oreos. INTERNATIONAL MONETARY FUND-RESOURCES Bill provides-No ) change in US. quota J withoutouthorizo- ^ | tion of Congress, j I Quotas SUBSCRIPTIONS (Quotas) 4 4 Member Countries-$8.8 Billions See table on Quotas % vote required for change in quota No change in its quota without consent of member. Currencies of Member Countries $7.0 Bi I. U.S Others $2,062.5 Mil. 4,937.5 Mil. Gold value of assets always constant. Brazil 150 Luxembourg, 10 Canada 300 Chile___ China Colombia 5 0 Netherlands- 2 7 5 5 5 0 New Zea50 land 30 Costa Rica Cuba CzechoSlovakia Dominican Rep. Ecuador Egypt El Salvador Ethiopia France Greece Guatemala Haiti Honduras Iceland India GOLD DEPOSITORIES Gold depositories in 4 other countries. Initially 4 0 % of gold held in these 4 depositories. Millions of United States Dollars Australia 2 0 0 Iron 25 Belgium 2 2 5 Iraq 6 Bolivia 10 Liberia S Mexico 7 50 Nicaragua Norway. Panama 125 Paraguay Peru 5 Philippine 5 Other gold depositories selected by the fund. 2 50 .5 2 25 Com__ „. 15 4 5 Poland 125 2.5 Union of 6 S. Afr. 100 450 USSR 1,200 4 0 United 5 Kingdom.. .1,300 5 United States£750 2.5 Uruguay 15 I Venezuela 15 4 0 0 Yugoslavia..... BO CURRENCY DEPOSITORIES FED RESERVE BANKS Depository for U S dollars held by Rind. *0 CENTRAL BANKS Each Central Bank is Fund* depository for the Currency of that country held by Fund. Non-negotiable, non-interest bearing notes payable on demand may be substituted for dollars which in the judgment of the Fund ore not needed forcurrent operations. Other countries may substitute same type of securities for their currencies under same circumstances. PERCENTAGE CHANGE IN SHARE OF WORLD TRADE, 1928 to 1934 Share Increased, 1928 to 1934 Share Decreased, 1928 to 1934 +1% ^Germany U.K Canada E \ > N * \ . \ * \ * S . \ . \ * \ a a > 3n% •\'\'\'\'\»s'\-\'^ US. FO-200 International Bank For Reconstruction And Development RESOURCES AND THEIR USE Subscriptions Million* of Dottort Australia Belgium Bolivia Brazil Canada Chile China Colombia Costa Rica Cuba Czechoslovakia Dominican Rep. Ecuador. Egypt. El Salvador Ethiopia France Greece Guatemala Haiti Honduras Iceland India .200 225 .7 105 _325 35 600 35 2 35 Iron 24 Iraq q 6 i Liberia 5 Luxembourg 10 Mexico 65 Netherlands— 2T 5 New Zealand .50 Nicaragua Jo Norway. 50 —2 125 2 3.2 40 \ 3 450 25 2 2 I I 400 Paraguay BANK'S I OPERATIONS Loans and Guarantees j May not exceed unimpaired 1 subscribed capital,reserves and surplus. 9.1 Billion .6 17.5 —125 Union of S. Afr. 100 U.S.S.R. 1,200 United Kingdom 1,300 UnitedStates3,l75 Uruguay 10.5 Venezuela __IO.5 Yugoslavia 40 SPECIAL RESERVE SURETY FUND $ 7 2 8 0 Mil. Callable to meet obligations on guarantees and securities of Bank payable in gold, dollars, or currency required to meet obligations. Paid-in Gold $162 Mil Currency__728 » Callable for Operations Currency Undistributed Earnings ; Can be used for loans out i j of capital) Available to meet losses ,1 after surety fund, reserves and surplus have been used. Commissions on guarantees and loans Available to meet liabilities in order shown. M-92 INTERNATIONAL MONETARY FUND-ORGANIZATION AND MANAGEMENT BOARD OF GOVERNORS Cooperation ) with other InternotioffKil Organizations j Powers Reserved to Board Membership 1. Admit new members. 2. Approve revision of quotas. 3. Approve uniform change in par values. 4. Cooperate with International organization 5. Determine distribution of income. 6. Require a member to withdraw. 7. Decision to liquidate 8.Deckte appeals on agreement. 4 4 Members ~1 from eoch country* Each Governor votes as shown in voting schedule iweeis annually, omei mefir* ings may be called by the Board or the Executive Directors. Powers All Powers delegated by Board of Governors EXECUTIVE DIRECTORS Membership: 12 to 14 Members Chosen as in table on Executive Directors. Continuous session: meets when business requires. Managing Director serves as chairman of Executive Directors. Managing Director Officers and Staff Executive Directors Australia Belgium Bolivia Brazil Canada Chile China M Colombia j Costa Rica I Cuba Czechoslovakia .2250 2,500 _ 350 _ 1,750 .3250 _ 750 .5,750 . 750 . 300 . 750 .1,500 Dominican Rep- _ 300 India Ecuador _ 300 bran __ 700 Iraq Egypt El Salvador. __. 275 Liberia Ethiopia .__ 310 Luxembourg France __4.750 Mexico Greece .__ 650 Netherlands Guatemala .__ 300 New Zealand Haiti __ 300 Nicaragua Honduras __ 275 Norway 260 Panama Total 99,000 .4,250 500 330 255 350 1.150 3000 750 270 750 255 Poland 1,500 Union of S. Afr.__ 1,250 USSR 12250 United Kingdom. 1^250 United States 27,750 Uruguay __ 400 Venezuela 400 Yugoslavia 650 Each of the fo« U.S. U.K., U.&S.R., China, From*. 2 Executive Directors selected by American ffepMics o n t o * tin j 5 Executive Directors selected by all other countries on basts of i proportional representation. j If not already included among the 5 Executive Directors by appointJ mem, me c. ooumrm vmose currencies nave oecn twoucso oetow thev Quotastoythe largest amounts, ape each entitled io appoint a INTERNATIONAL MONETARY FUND-EXCHANGE STABILITY Par values of currencies based on exchange rates prevailing on 6 0 t h day before Agreement becomes effective unless country or Fund object within 9 0 days; in which case Fund and country determine suitable rate. Currencies defined in terms of U.S. DoUar. Dollar: defined in terms of gold - I 5 $ £ i grains % > fine Congressional Approval Currencies defined in terms of gold. I JLwere enemy["Countries which j occupied given longer period, during which currencies may I be purchased from Fund ! under conditions prescribed I by Fund. 1 1. Bin requires US. Dollar be de-j fined at present gold content, i J2.BIII provides no change in par- j ity may be proposed without ! j Congress authorization. } Stability Changes in Parity Currencies must be kept stable within 1% above and below parity. JL Change in parity may be made only on proposal of member. Uniform change in parity requires majority vote and all countries with 10% or more of aggregate quotas. Bill provides-no consent of US. without Congress authorization. J. A member shall not propose a change in parity except to correct a fundamental disequilibrium. Changes aggregating 10% may be made after consultation with the Fund. The Fund may not object. On all other changes the Fund may concur or object. If par value is changed member must deliver a d ditional currency. If a proposed change is necessary, the Fund shall not object because of domestic social or political policies of the member. If a member changes the par value over the objection of the Fund, it is ineligible to use the resources of the Fund and may be required to withdraw from membership.
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