The Dream of Banker Aldrich

Winthrop Williams Aldrich, the 58-year-old president of the Chase National, world's largest bank, last week gave the U.S. his considered opinion on the Bretton Woods currency and world bank plans (TIME, July 31). His opinion: junk the plans, on which experts of 45 nations labored for months, and start all over again.

As a place from which to begin anew, Banker Aldrich suggested a plan of his own, which soared so far above considerations of the practical political and economic possibilities as to make him seem an unworldly visionary.

Banker Aldrich began modestly and well: the U.S. and the British should "enter into immediate conversations on such problems as tariff barriers, imperial preference, export subsidies, bulk purchasing and regional currency arrangements. . . . We must be prepared to effect substantial reductions in our tariff rates." But then, he said, the U.S. must also be prepared to hand Britain a "grant-in-aid" to stabilize the pound. "The sum may be large," said Banker Aldrich dreamily. The U.S. must also open its purse wide, through the Export-Import Bank, to borrowers from all the nations of the world. How much would this amount to? Banker Aldrich did not specify.

Once the dollar-pound rate is stabilized, he would stabilize the other currencies of the world. This he did in two smooth sentences which declared the millennium: "The prerequisites for such stabilization are internal political stability, a constructive solution of the problem of trade barriers, a reasonable measure of economic well-being and the absence of inflation.

Once the prerequisites are obtained, the financial problem of currency stabilization becomes relatively simple." But Banker Aldrich's well-intentioned proposals began to come apart when he mentioned that there are a few other prerequisites to the success of his plan.

The U.S. must, he said, do certain things to give other nations complete confidence in the dollar (which is to be the key currency), such as: cancel all World War I debts ($14,256,000,000); repeal the Johnson Act; repeal all silver-purchase legislation; repeal the Gold Reserve Act amendments allowing the Treasury to trade in gold at other than the official rate of $35 per ounce; free the dollar of all exchange controls. Other items: the U.S. must also incidentally balance the federal budget, and, of course, must avoid both a postwar boom or a depression.

"This will not prove easy," Banker Aldrich commented and in closing, added sadly: "It is unfortunate that so much time and energy were given to the Bretton Woods proposals rather than to the main task of economic reconstruction."

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