(3 of 4)
Certainly Mr. Traylor acted as if he would find it hard to say no to the nomination. Earlier in the day he visited Basle, 80 miles south of Baden-Baden, inspected a building offered by the Swiss Government to the Bank, discussed with Swiss officials the project of a treaty which would exempt all funds and operations of the Bank from Swiss taxation. Also he talked to correspondents in a way which must have pleased the Governors of Europe's central banks who will elect the Chairman. Said he "... These governors of central banks are probably the most conservative group of bankers in the world and have a clear knowledge of the dangers of mixing politics and banking. . . .
"[The Bank's] primary purpose, at least for some time, will be that of trustee for the payment of German reparations. . . .
"I feel, in fact, that no country and no central bank or other institution has grounds for fearing competition."
Kept secret last week, though signed by the Baden-Baden bankers and made ready for consideration by the Second Hague Conference, was the so-called Deed of Trust under which payment of German Reparations will actually be conveyed to the Bank for distribution to the Allied Powers under the Young Plan. Last week, while this and indeed the whole Bank project awaited tinkering at The Hague, it seemed certain only that "Messrs Y" of No. 23 Wall Street will decide whether Mr. Reynolds. Mr. Traylor or perhaps a Mr. Z. will punch as chairman the Biggest Cash Register.
Omen of Harmony: on leaving the conference last week Leader Lichtenstein sped to Brussels, approached with soothing words the huffy Belgian delegates who had refused to sign at Baden-Baden last fortnight, offered his fountain pen, got their signatures. Before signing. Governor of the Bank of Belgium Louis Franck added a reservation that, while approving everything else in the Statutes and Deed of Trust, he does not approve location of the Bank at Basle.
* Not to be confused with H. S. H. Prince Franz of Liechtenstein, sovereign of the least populous principality in Europe, Liechtenstein (pop. 11,500) adjoining Switzerland. Seller Lichtenstein, born in Germany, took his A.B., A.M. and Ph.D. at Harvard, stayed on as Curator of Harvard's Hohenzollern Collection (books) until after the War, then went, aged 38, to Chicago's First National Bank, where he is Executive Secretary.
* Together the 14 banks will buy Japan's $8,000,000 allotment of shares in the Bank for International Settlements, will be represented on its board by Mr. Tetsujiro Tanaka, London representative of the Bank of Japan.
* Under Article 22 powers of the Bank include: buying and selling of gold for its own account of the central banks; holding gold for its own account under the earmark of the central banks; accepting custody of gold for the account of the central banks; making advances to or borrowing from the central banks against collateral of prime liquidity; buying and selling of exchange for its own account or that of the central banks; buying and selling of negotiable securities other than shares, and maintaining of current or deposit accounts with the central banks.