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In the ballroom next morning there were eulogies. Cried Banker Delacroix's colleague, Belgian Delegate Louis Franck, "He died like a soldier on the field of battle, but more happily than a soldier, for he fell not in cruel struggle but in the service both of his country and mankind!" Other delegates were as meaninglessly effusive. Then spoke blunt Hjalmar Horace Greeley Schacht, famed President of the Reichsbank. Recalling the hate-pregnant past, when Belgium's Delacroix came to Berlin directly after the War as a trustee for German railway bonds and a mem ber of the commission which revised the statutes of the Reichsbank, gruff Dr. Schacht concluded with visible emotion: "I must say that the gentle and moderating influence of Monsieur Delacroix did much to remove our post-War difficulties." Humanitarians recall that during Leon Delacroix's two years as Prime Minister he wangled through Belgium's obstreperous Parliament the eight-hour day, universal suffrage, tax reform and the temperance law.* After adjourning for one day to mourn Belgium's Delacroix, the bankers got back to their ballroom, soon rounded out a major portion of their labors by announcing that they had reached agreement in principle on the following attributes of the Bank for International Settlements (now begin ning to be called the "Young Bank"). Capital to be $100,000,000 as envisioned in the Young Plan. Board of Governors to comprise: first, six Governors ("Bix Six") representing the central banks of Britain, Belgium, France, Germany, Italy, Japan; second, two U. S. Governors ("Big Two") elected by the "Big Six"; third, six more Governors ("Little Six") each selected by one of the "Big Six" from his own country as a representative of local business, industry; fourth, it is envisioned that additional countries may obtain a share in the Bank's capital and each of these may submit four nominees for Governorship from which the Board will choose two Governors.
Reason why five Europeans and one Asiatic will elect the two representatives of the U. S.: the Hoover Administration has negatived repeated proposals at Baden-Baden that the U. S. Governors should be named by the U. S. Federal Reserve Board. In thus eschewing even fiscal "entangling alliances" the U. S. keeps the freest possible hand, appears to have no fear that Europe and Asia will ever elect a Governor unacceptable to Washington.
Chairman of the Board to be elected by the Governors for a term of several years, indefinitely renewable. Expectations at Baden-Baden were that a U. S. citizen would be elected Chairman, might find the office a lifetime job.
Negative Decision. The bankers were agreed last week that the B. I. S. (Bank for International Settlements) shall not issue notes or create credits, shall merely transfer, distribute and mobilize existing credits. It will be a clearing house for Reparations, not an international bank of issue, not a competitor with the great central banks as some have feared. Consequently the B. I. S. will have only a small gold reserve, since the sole worth of a large reserve is to back notes or credits.