February 1, 1960
Page 1663
INTERNATIONAL MONETARY REFORM
Mr. MUSKIE. Mr. President, for several years, experts on international economic problems have stressed the need for monetary reform. Many of them devised plans for such reform. But the discussion stayed in the wings, a theoretical problem debated by specialists.
Last fall, monetary reform moved to the center of the stage, as a result of the bold initiatives undertaken by the President. Secretary of the Treasury Fowler carried to all the European capitals the President's plea to get things moving. As a result, intensive work has begun to develop agreement among the major industrial countries on international monetary policy.
Later this year, we expect these negotiations to move into a second stage where other nations of the free world will also be represented. Before long, the world should be able to free its monetary system from domination by the pace of gold mining in South Africa, and the willingness of the Russians to part with their gold. As the President says, we can look forward to "an agreement that will make creation of new reserve assets a deliberate decision of the community of nations to serve the economic welfare of all."
Progress on this front is urgent . The Council of Economic Advisers' report shows how far world monetary reserves are lagging behind world trade, and it explains the threat to the growth of trade that can arise unless funds for international payments begin to grow more rapidly.
The Council's report also describes a promising road to new reserve creation in a two-pronged approach that creates a brand new reserve unit and simultaneously expands the important automatic lines of credit at the International Monetary Fund. Such a program will give new life and new vigor to world trade and the world's economy. This is a complicated technical area -- many countries and many views have to be heard. But it is an issue that is central to the economic welfare of the whole world.
The administration deserves congratulations for fulfilling so clearly America's role of world leadership on this important issue.