The Rotary Balita no. 659 (November 16, 1950)

ECONOMIC AND SOCIAL COUNCIL Can the World Rearm Without Inflation? The annual meeting of the International Monetary Fund is usually concerned with administrative details. Last year, however, it arranged the vastly important details of devaluation, and this year the delicate relationship between the Fund and the new European Payments Union was under scrutiny. It will allow nations within the union to dispense with all controls in their financial dealings. But of greatest concern was the effect of huge arms costs on the value of money. Managing Director of the Fund Camille Gutt warned that inflation could destroy what defense measures had preserved. The alternative was to spend less on investment and unnecessary social programs, he said. Can Bankers Prevent Future Koreas? President of the International Bank Eugene Black faced this issue squarely in his address to the annual meeting. Investment in the less-developed areas, could reduce the wide gap between standards of living which result in revolution and war, maintained. The Bank has already lent nearly one billion dollars to 17 countries. Its bonds ai:e the only dollar obligations listed on the Paris bourse. By restoring the integrity of internation-al lending, by demonstrating the sound way to develop domestic resources, by persuading the wealthy in underdeveloped countries to vent their capital, the Bank is helping to prevent future Koreas.