International Monetary Fund

Extract

The seventh annual meeting of the Board of Governors of the International Monetary Fund was held jointly with the Board of Governors of the International Bank for Reconstruction and Development in Mexico City, Mexico, September 3 through 12, 1952, under the chairmanship of the Governors for Brazil, Eugenio Gudin and Horacio Lafer. Presenting the seventh annual re-port of the Fund, the Managing Director (Rooth) stated that the payments problem had persisted for so long and was so little understood that the public might lose interest in its solution, but that with positive measures by the deficit and surplus countries, he believed the problem could be solved. After remarking that it could not be solved by “retreating behind a network of restrictions and discriminations”, he expressed concern with the recent spread in western Europe of dollar retention systems and similar arrangements. In the subsequent discussions of the policies and activities of the Fund as reported in the annual report, many Governors emphasized the importance of proper credit and budget policies in solving payments difficulties; some mentioned the need to recognize the responsibility of the surplus countries in restoring payments balance, it being suggested that joint discussions between surplus and deficit nations be held with the Fund; a number referred to the need for a clearer policy on the use of the Fund's resources, emphasizing the payments problems which arose in underdeveloped countries when there was a sudden depression in world markets; and several spoke about the price of gold.