International Monetary Fund
Published Date:
September 1947
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IN the year ending June 30, 1947, five additional countries were admitted to membership in the Fund, making a total of 44 members, and two further applications for membership were received.

Venezuela was among those countries which participated in the Bretton Woods Conference and were listed in Schedule A of the Fund Agreement. In their Resolution No. 9, adopted at the Inaugural Meeting, the Governors extended until December 31, 1946, the time in which such countries might accept membership in accordance with Article XX of the Fund Agreement. The Government of Venezuela accepted membership on December 30, 1946.

The terms and conditions for the admission of Italy, Lebanon, Syria and Turkey were decided by the Board of Governors at their First Annual Meeting in September 1946. These terms and conditions were duly complied with and membership accepted within the period prescribed. The dates on which formal acceptance was registered are as follows: Turkey, March 11, 1947; Italy, March 27, 1947; Syria, April 10, 1947; and Lebanon, April 14, 1947.

Australia and Finland applied for membership during the year in accordance with Article II, Section 2 of the Fund Agreement. The application of Australia was approved by the Board of Governors in a vote without meeting. The decision was that Australia had until August 31, 1947, to accept membership.2 The application of the Government of Finland will be laid before the Board of Governors at their Second Annual Meeting.

A list of the members of the Fund, their quotas, the Governor appointed by each member and the voting power of each member is attached as Appendix I. Changes in the Board of Governors since the First Annual Meeting are shown in Appendix II.


The aggregate quotas of members of the Fund were increased by $324 million during the fiscal year, from $7,397.5 million as of June 30, 1946, to $7,721.5 million as of June 30, 1947. Of the total increase $249 million is accounted for by the quotas of new members which are as follows: Italy $180 million, Turkey $43 million, Venezuela $15 million, Syria $6.5 million and Lebanon $4.5 million. The remaining $75 million of the increase is accounted for by the change in the quota of France. The quotas of all members of the Fund as of June 30, 1947, are shown in Appendix I.

At their First Annual Meeting the Board of Governors adopted resolutions on requests for an increase in the quotas of France, Iran and Paraguay. In all cases approval of these requests was contingent upon application for a proportionate increase in the member’s subscription in the International Bank for Reconstruction and Development, if the Bank so decides.

By resolution of the Board of Governors (Resolution No. 13, First Annual Meeting) an increase of the French quota from $450 million to $525 million was approved and this increase has been accepted by France.

The Board of Governors resolved that the quota of Paraguay be increased from $2 million to $3.5 million (Resolution No. 12, First Annual Meeting). At the end of the fiscal year, Paraguay had not taken advantage of the authorized increase by applying for an increase in its subscription in the Bank.

The request for an increase in the quota of Iran was referred by the Board of Governors to the Executive Directors for their recommendation (Resolution No. 11, First Annual Meeting). Since the First Annual Meeting a request for an increase in the quota of Egypt has also been received. The Executive Directors are submitting their recommendations to the Board of Governors on these two requests in separate documents.

Executive Directors

Mr. Harry D. White resigned as United States Executive Director effective June 1, 1947, and Mr. Andrew N. Overby was appointed to succeed him. In expressing their thanks to Mr. White for outstanding services rendered the Fund and its members, the Executive Directors appointed him to the special position of honorary Adviser to the Fund.

Denmark was admitted to membership in the Fund on March 30, 1946, just after the Inaugural Meeting of the Fund and, therefore, did not participate in the election of Executive Directors at that meeting. A request by Denmark that arrangements be made by which the Danish Governor might cast the Danish vote in favor of one of the Directors elected at the Inaugural Meeting was considered by the Board of Governors at their last Annual Meeting and was referred to the Executive Directors (Resolution No. 4, First Annual Meeting). The Executive Directors considered the request and concluded that a country admitted to membership in the Fund between elections cannot designate to cast its votes an Executive Director holding office at the time the interim election takes place under Savannah Resolution No. 10. The Executive Directors further concluded that Denmark’s votes would be cast by the Director elected under Savannah Resolution No. 10.

This resolution provided for the election of one additional Executive Director under certain conditions of increased membership. With the admission to the Fund of Denmark, Venezuela, Turkey and Italy, bringing votes of countries unrepresented by Executive Directors to a total of 4,060, the election of an additional Executive Director was held. Mr. Guido Carli of Italy was declared elected on May 14 and is accordingly entitled to cast the votes of those members who were eligible to participate in the election.

The Executive Directors of the Fund and their voting power as of June 30, 1947, are shown in Appendix III and changes in the Executive Directors during the fiscal year in Appendix IV.


At the time of the last Annual Meeting, the operating staff on duty numbered approximately 100 persons. Further recruitment of qualified staff has proceeded carefully with due regard to the importance of recruiting on as wide a geographical basis as possible. On June 30, 1947, the staff numbered 355 recruited from 27 countries. The distribution of the staff by salary and geographical area is shown in Appendix V.

A staff pension plan to be operated jointly by the Fund and the Bank and a contributory health insurance scheme are under consideration.

Relations with Member Countries

For the completeness of its information, the Fund is largely dependent on the cooperation of its members. It must look to them not only for financial and economic data but also for data concerning exchange controls and practices and for the laws, regulations and agreements upon which these controls and practices are based. A steady flow and exchange of information is essential in order that the policies and actions of the Fund may be directed toward the best solution of problems from the international point of view in the light of its knowledge of the position and individual interests of all members.

The flow of information in itself is not enough. It is necessary to evaluate the information against the background of conditions in member countries. In the past year representatives of the Fund have visited nearly all of the member countries and have discussed problems with their monetary authorities and officials. Such close relations involving frequent consultation must be continued if the Fund is to be fully aware of the problems of members and if members are to have a full understanding of the working of the Fund.

At the request of Ecuador, the Fund provided a technical mission for consultation on exchange and monetary problems.

Information on Silver

At their First Annual Meeting, the Board of Governors resolved that:

  • The Fund shall gather whatever material is available and obtainable on the monetary uses of silver; the real function of silver coins; risks and uncertainties of its monetary uses; possibilities of cooperation in the use of silver for monetary purposes, et cetera. In general, the Fund shall gather material, statistical or otherwise, which could be useful in facilitating discussions on the subject in an international conference among interested member countries.

The Fund has been gathering material called for by this resolution. In order to help complete this task further information on silver legislation and monetary uses of silver will be requested from members.

Rules and Regulations

Certain modifications and additions have been made to the Rules and Regulations which have been communicated to members and are being submitted separately to the Board of Governors for review.

Relations with Other International Organizations

The Fund and the International Bank have been working together on their common problems. In addition, the Fund and United Nations have developed their cooperative relationship, and satisfactory liaison has been established with the Food and Agriculture Organization and the International Labor Organization. There is general recognition of the Fund’s important position as the central international organization in the field of foreign exchange, monetary reserves and international payments and as a source of advice and assistance in these matters.

The Fund and United Nations have been considering the terms of an agreement defining their relationship. It is hoped a formal agreement will be reached for submission to the Board of Governors.

The Fund has been invited to participate in or send observers to meetings of the organs of the United Nations which are concerned with matters of interest to the Fund.

The Fund has taken an active part in the work of the conference in which the Charter for a proposed International Trade Organization is being drafted. Close liaison is clearly needed in view of the importance of balance of payments considerations in the field of trade as well as exchange policy. Specifically, important provisions of the proposed Charter relate to the use of quantitative restrictions on imports for balance of payments or monetary reserve reasons, which are matters of direct concern to the Fund. A satisfactory relationship has been established between the Preparatory Committee and the Fund Representatives, and a good understanding of the probable inter-relationship of the activities of the two organizations has developed. It is anticipated that a formal arrangement will be worked out between the Fund and the International Trade Organization (or the Interim Trade Committee) when the latter is finally established.

Financial Report

Section 20 of the By-Laws requires that the Executive Directors shall have an audit of the accounts of the Fund made at least once each year and on the basis of this audit shall submit a balance sheet and a statement of operations of the Fund to the Board of Governors, to be considered by them at their Annual Meeting.

In accordance with the resolution adopted by the Board of Governors at their last Annual Meeting, the external audit of the Fund has been performed by an Auditing Committee consisting of auditors from the Treasuries of four member countries. At the Fund’s request, the Governors for Canada, France, the Union of South Africa and the United States nominated auditors to serve on this Committee. They respectively nominated Mr. Joseph Hopkinson, Assistant Auditor General; Mr. Gilles Warnier de Wailly, Inspector of Finance; Mr. Henry John Alfred Bartie, Chief Inspector, Comptroller and Auditor General’s Department; and Mr. Gilbert L. Cake, Associate Commissioner of Accounts, Treasury Department. The report of the Auditing Committee is being submitted separately.

The Auditors’ certificate, together with a condensed balance sheet as of June 30, 1947, and certain supporting Schedules are attached as Appendix VI. A statement of exchange transactions is attached as Appendix VII. A summary of subscription payments by members and a statement of the Fund’s holdings of member currencies as of June 30, 1947, are attached as Appendix VIII.

The Board of Governors also requested the Executive Directors to give further consideration to the auditing requirements of the Fund. A separate report on this subject is being submitted.

Administrative Budget

The Executive Directors are recommending to the Board of Governors that the fiscal year-end be changed from June 30 to April 30. Alternative Administrative Budgets for 10-month and 12-month periods beginning July 1, 1947, as approved by the Executive Directors, are accordingly presented in Appendix IX.

Australia accepted membership on August 5, 1947.

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