VI. Organization And Administration

International Monetary Fund
Published Date:
September 1948
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AUSTRALIA accepted membership on August 5, 1947, and Finland, whose application was approved at the Second Annual Meeting of the Board of Governors, accepted membership on January 14, 1948. The total number of members was thus raised to 46.

Austria applied for membership on August 20, 1947; the application was approved by the Board of Governors in a vote without meeting and Austria has until August 31, 1948, to accept membership.

The Fund was notified by the United Kingdom that as a result of the passing of the Burma Independence Act, 1947, Burma no longer could be regarded as a Territory on whose behalf the United Kingdom had accepted the Articles of Agreement of the Fund. The passing of the Ceylon Independence Act of 1948 had a similar effect with regard to Ceylon.

A list showing the members of the Fund, their quotas, the Governor and Alternate Governor appointed by each member and the voting power of each member is attached as Appendix X. Changes in the membership of the Board of Governors since the Second Annual Report are shown in Appendix XI.


At the First Annual Meeting, the Board of Governors resolved that the quota of Paraguay be increased from $2 million to $3.5 million providing that the adjustment should become effective when Paraguay applied for a proportionate increase in its subscription in the International Bank. On January 26, 1948, the Fund was officially informed that the Bank had received from Paraguay an application for an increase of $600,000 in its subscription to the capital stock of the Bank, that this increase had been authorized by the Board of Governors of the Bank and that Paraguay had paid to the Bank the 20 per cent of the increase which was payable pursuant to the resolution authorizing the increase. The quota of Paraguay in the Fund was accordingly adjusted as provided in the relevant resolution of the First Annual Meeting.

At the Second Annual Meeting, the Board of Governors adopted resolutions increasing the quota of Iran from $25 million to $35 million and the quota of Egypt from $45 million to $60 million. The increase in each case was contingent on application for a proportionate change in subscription in the Bank and on official notice of consent to the change on or before March 31, 1948. Egypt’s notice of consent was duly received and the new quota for Egypt accordingly became effective. The Fund was requested by Iran to postpone the date set forth in the resolution adopted at the Second Annual Meeting. The Board of Governors voted without meeting to change the final date for notice of consent to July 31, 1948.

In taking cognizance, at the Second Annual Meeting, of a communication received from the Government of India transmitting a copy of the Indian Independence (International Arrangements) Order, 1947, the Board of Governors agreed that the original quota of India in the Fund should continue to be the quota of the Dominion of India.

A request was received from Honduras for a reduction in its quota; the Executive Directors are submitting their recommendation on this request to the Board of Governors in a separate document.

The aggregate quotas of members of the Fund were increased from $7,721.5 million as of June 30, 1947, to $7,976 million as of April 30, 1948. Of the total increase $200 million is accounted for by the quota of Australia, $38 million by the quota of Finland, $15 million by the increase in the quota of Egypt and $1.5 million by the increase in the quota of Paraguay. The quotas of all members of the Fund as of April 30, 1948, are shown in Appendix X.

Executive Directors

It is with deep regret that the Executive Directors record the death on March 22, 1948, of their colleague, Dr. Gijsbert W. J. Bruins, Executive Director elected by the Netherlands and the Union of South Africa. Dr. Bruins took a prominent part in the founding of the Fund and the wisdom and experience which he had gained through many years of participation in international and financial affairs had greatly benefited the Fund since its establishment. He always gave generously of his counsel, time and energy to the work of the Executive Board and in his death the Fund has lost one of its most valued counselors.

Pursuant to Article XII, Section 3 (f) of the Fund Agreement, an election was held to choose an Executive Director to serve the remainder of the term of office of Dr. Bruins. The members eligible to participate were the Netherlands and the Union of South Africa. Mr. Johan W. Beyen of the Netherlands was nominated and elected.

At the Second Annual Meeting, the Board of Governors adopted a resolution providing for the election of an additional Executive Director by those members who, as of December 31, 1947, were not entitled to appoint Directors and whose votes were not entitled to be cast by Directors holding office. The members eligible to participate in the election were Australia, Syria and Lebanon. Mr. Stuart G. McFarlane of Australia was elected.

The Executive Directors of the Fund and their voting power as of April 30, 1948, are shown in Appendix XII and changes in the membership of the Executive Board in the fiscal year in Appendix XIII.


Mr. Maurice H. Parsons, formerly Alternate Executive Director for the United Kingdom, was appointed Director of Operations in November 1947 replacing Mr. John L. Fisher who had resigned.

On April 30, 1948, the staff numbered 403 persons, 379 of whom held regular appointments. This represents an increase of 49 persons during the fiscal year. There are nationals of twenty-nine member countries on the staff. The distribution of the staff by salary and geographical area is shown in Appendix XIV.

The Executive Directors wish to record their appreciation of the high quality of the services rendered by the staff which has continued to demonstrate great competence and devotion to duty.

A contributory group health plan has been in effect since September 1, 1947. Participation is voluntary and 65 per cent of the eligible staff have joined. A staff retirement plan was approved to go into effect on July 1, 1948.

Rules and Regulations

There are submitted separately to the Board of Governors for their review certain modifications of the Rules and Regulations.


At the Second Annual Meeting, the Board of Governors adopted a resolution requesting member countries to submit, at their earliest convenience, data relating to silver and its uses pursuant to Resolution No. 3 adopted at the First Annual Meeting, and instructing the Fund to assemble whatever data might be submitted and make it available to all members not later than March 1, 1948. The requested data were not received from a sufficient number of members by March 1, 1948, and it was accordingly necessary to notify members that the report on silver would be delayed.

Financial Report

The Executive Directors requested Mexico, the Union of South Africa and the United States each to nominate a member for an Audit Committee to audit the accounts as required under Section 20 (b) of the By-Laws. These three countries nominated, respectively, Mr. Roberto Casas-Alatriste, Public Auditor, Mr. H. J. A. Bartie, Chief Inspector, Controller and Auditor-General’s Department, and Mr. Gilbert L. Cake, Associate Commissioner of Accounts of the United States Treasury. The report of the Audit Committee is submitted separately.

The Auditors’ certificate, with the audited balance sheet as of April 30, 1948, and audited statement of income and expense, with supporting Schedules, are presented in Appendix VIII.

Administrative Budget

An Administrative Budget for the period May 1, 1948, to April 30, 1949, as approved by the Executive Directors, is presented in Appendix XV.

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