Mr. Gold, the General Counsel and Director of the Legal Department of the Fund, is a graduate of the Universities of London and Harvard. He is the author of numerous books, pamphlets, and essays on the Fund and on international and national monetary law.
Arthur Nussbaum, Money in the Law, National and International: A Comparative Study in the Borderline of Law and Economics, hereinafter referred to as Money in the Law (New York, 1950).
Ibid., Section 39, pp. 547–52. See also Arthur Nussbaum, “A Note on the Idea of World Money,” Political Science Quarterly, Vol. 64 (September 1949), pp. 420–27.
Nussbaum, Money in the Law, p. 549.
Ibid., p. 549. “… [T]here was nothing unusual in an Italian patrician of the sixteenth century vying for literary laurels. Apparently Scaruffi had even hired learned assistants for his work, a fact that seems to account for the pompous title and for some citations from the ancient classics. Scaruffi also had the book printed at his own cost. Later centuries have certainly shown that the expenses were not wasted from his point of view” (ibid.).
“… Crucé is a dilettante in monetary matters. Politically his project as a whole tends toward French leadership, a conception that was destined to assume greater significance later” (ibid., p. 550).
Ibid., p. 552.
See Joseph Gold, Special Drawing Rights: The Role of Language, IMF Pamphlet Series, No. 15 (Washington, 1971), pp. 3-11 (hereinafter referred to as Gold, Role of Language).
See Paul Heffernan, “From Alpbach: A New Name for SDRs?” The Money Manager, Vol. 2 (September 17, 1973), p. 48; “Think SDRs and Say Goodbye to Gold,” The Economist, Vol. 255 (June 7, 1975), p. 50; “Destino das Moedas,” Jornal do Brasil, February 14, 1975, p. 6.
International Monetary Fund, International Monetary Reform: Documents of the Committee of Twenty (Washington, 1974), p. 16. The sentence could be regarded as a respectful interment of the project. It was certainly intended to dispose with decorum of one “other aspect,” the proposal that SDRs should have a “backing” of currencies. On the “myth” of backing, see Fritz Machlup, Remaking the International Monetary System: The Rio Agreement and Beyond (Baltimore, 1968), pp. 64–66.
International Monetary Fund, Summary Proceedings of the Twenty-Eighth Annual Meeting of the Board of Governors (Washington, September 1973), p. 364.
Statement by the Governor of the Bank for Austria, ibid., p. 135. The word is too close to “ergot,” but a more important disadvantage is that the syllable “or” might be taken to refer to gold. See also the statement by the Governor of the Fund and Bank for Canada, ibid., p. 112 (who supported the name, “international monetary unit”); “The Thoughts of Three Chairmen,” The Economist, Vol. 256 (August 9, 1975), Survey 11–13, in which Lord Barber of Wentridge writes of the delicacy of Mr. Aichi in not pursuing his preference for “international reserve asset” (IRA).
See, for example, Hobart Rowen, “7 Problems That Surfaced During IMF Kenya Parley,” The Washington Post (September 30, 1973), pp. F1–2; “Une Interview au ‘Monde’ de M. Giscard d’Estaing,” Le Monde (October 4, 1973), p. 44 (“… il existe actuellement vingt appellations concurrentes …” according to M. Valéry Giscard d’Estaing).
“La Soluzione Scaturita dalla Conferenza di Nairobi: Come si riuscirà a salvare la convertibilità monetaria,” Corriere della Sera (October 5, 1973), p. 7.
“A Decade of Impressive Achievement,” The Times (August 31, 1973), p. 17. But see Nicholas Davenport, “Money and the City: Money Talks at Nairobi,” The Spectator (September 8, 1973), p. 322.
“Kritisch gesehen: Ein ESKIMO?” Hamburger Abendblatt (September 29/30, 1973), p. 10.
From the Tamil ponn (gold) plus kassu (money) or kakidam (paper).
For example, Bara (banking reserve asset), CUP (composite universal parity), SAW (settlement asset of the world).
The Essays of Francis Bacon, ed. by Clark Sunderland Northup (Boston, 1908), pp. 77.
See Joseph Gold, Special Drawing Rights: Character and Use, IMF Pamphlet Series, No. 13 (Washington, Second Edition, 1970), pp. 10–11 and 16–56.
Article XXIV, Section 1(a).
International Monetary Fund, Reform of the International Monetary System: A Report by the Executive Directors to the Board of Governors (Washington, 1972), Ch. IV: 3 (hereinafter referred to as Report on Reform).
Article XXVI, Section 3. (Action has already been taken for this purpose. See Rules 1–10 and O–3.)
Article XXV, Section 3.
Article XXV, Section 6, and Schedule G.
Article XXV, Section 7.
Article XXIII, Section 3.
John Brooks, “A Reporter at Large (International Monetary Fund Meeting),” The New Yorker (October 23, 1971), p. 131.
See Gold, Role of Language, pp. 3–11.
But the term may become entrenched in domestic law, and that development might discourage change. For example, the Par Value Modification Act of the United States defines the par value of the dollar primarily in terms of special drawing rights. “This move is consistent with proposals the United States has made for international monetary reform—we have proposed diminishing the monetary role of gold, and we have favored use of the SDR as the common unit of account in which all currency values would be measured,” Paul A. Volcker, Under Secretary for Monetary Affairs, Department of the Treasury, U.S. Congress, Senate, Committee on Banking, Housing and Urban Affairs, Amend the Par Value Modification Act, Hearing on S. 929 (93rd Congress, 1st Session, Washington, February 27, 1973), pp. 10–11. (Compare footnote 35.)
J. Keith Horsefield and others, The International Monetary Fund, 1945–1965: Twenty Years of International Monetary Cooperation (Washington, 1969), Vol. I, pp. 18–19 (hereinafter referred to as History).
Ibid., Vol. III, pp. 80–82.
Ibid., pp. 87–88. The term “United Nations” had been chosen already. The “Declaration by United Nations” was signed on behalf of four powers on January 1, 1942, and on behalf of 22 more countries the next day, and the new name quickly established itself. See Ruth B. Russell assisted by Jeannette E. Muther, A History of the United Nations Charter: The Role of the United States 1940–1945 (The Brookings Institution, Washington, 1958), pp. 50–51.
John Morton Blum, From the Morgenthau Diaries: Years of War, 1941-1945 (Boston, 1967), Vol. 3, p. 237.
The U.S. Treasury had attempted to explain its abandonment of “unitas”: “The Fund proposal as outlined by the Joint Statement makes no provision for transferable currency or deposits in terms of a new or special monetary unit,” Questions and Answers on the International Monetary Fund (mimeographed, Washington, June 10, 1944), pp. 34–35. A new unit was not necessary for a Fund that would operate only with gold, subscribed currencies, and any resources the Fund was able to borrow. The reasons for denying the Fund the right “to create credit” beyond its operations with these resources are interesting in the light of history. (Reply to Question 15, History, Vol. III, pp. 153–54.)
U. S. Congress, House, Committee on Banking and Currency, Bretton Woods Agreements Act, Hearings on H.R.2211 (79th Congress, 1st Session, Washington, March 7–9, 12–16, and 19–23, 1945), pp. 151–54. The discussion ended with the following exchange (p. 154):
Mr. White. I might add that the hesitation and the doubts and confusion which you might observe in our answers do not indicate that the question in our judgment is a significant one. Our doubts as to the proper answer spring largely from the fact that the question, to us, does not have any importance, and that is why we wonder why you ask it, because most of your questions are good ones.
Mr. Smith. Mr. White, the reason I ask it is because you had adopted “unitas.”
Mr. White. I see; and you wondered whether that term could be brought back in through the back door.
Mr. Smith. That is right.
Mr. White. No; there is no such intention. “Unitas” is a dead duck, if that is what you are asking.
Mr. Smith. That might be a dead duck, but there might be other ducks still alive. Are you prepared to say to the committee that, in your judgment, the fund will not———
Mr. White. That is my judgment.
Mr. Smith. Adopt a unit of account and give it———
Mr. White. Other names than are indicated?
Mr. Smith. Another name than that of dollars?
Mr. White. That would be my judgment, Dr. Smith.
I have not been able to trace this reference. Obviously, the place was not the town of Talent in Jackson County, southwest Oregon.
U. K. Parliamentary Debates (Hansard), House of Lords, Vol. 127, April 6–June 10, 1943, cols. 529–30.
Ibid., col. 560.
Is the reference to the card game called “banco,” in which the participants, as in baccarat, play against an appointed banker? (Alan Wykes, Complete Illustrated Guide to Gambling (New York, 1964), pp. 178–79.) As for the history, or part of the history, of the word “banco,” see Professor Benjamin Haggott Beck-hart of Columbia University:
“BANCO, bäng’kō, is a Late Latin word from which bank and bankruptcy are derived. Originally meaning ‘shelf or ‘bench,’ the term became specialized in medieval Italy to designate the benches or tables on which money changers heaped coins to attract customers. In time the word was used to describe the business itself—Italian banca, French banque, and English bank. If customers became dissatisfied with a money changer, they might overturn his table. The term ‘bankruptcy’ derives from this practice.
” ‘Banco’ later designated a unit of account in which banks in Venice, Genoa, Amsterdam, and Hamburg gave credit for deposits and kept their accounts. One of these, the Bank of Hamburg (1619–1873), received deposits of coins and bars of varying weights and fineness and gave credit in the ‘Mark banco,’ which was itself not coined but represented 8⅔ grams of fine silver. The Mark banco expedited commerce, for otherwise settlements would have required a multitude of coins of uncertain value,” Encyclopedia Americana (New York, International Edition, 1972), Vol. 3, p. 147.
U. K. Parliamentary Debates (Hansard), House of Commons, Vol. 389, May 4–27, 1943, col. 679. Mr. Woodburn, who was a Scottish Member of Parliament, was probably referring to the use of the word “unitas” in Scotland as a trademark for soap and oatmeal porridge marketed by the Scottish Co-operative Wholesale Society.
U.K. Parliamentary Debates (Hansard), House of Lords, Vol. 131, March 14—May 26, 1944, col. 838.
The reference is to Mr. John Unitas, a distinguished football player, who bears a surname of Lithuanian origin. The entry in Elsdon C. Smith, New Dictionary of American Family Names (New York, 1973), p. 524, is as follows: “‘Unitas’ (Lith)—the son of Jonas, Lithuanian form of John (gracious gift of Jehovah).”
Article XXI, Section 2: “The unit of value of special drawing rights shall be equivalent to 0.888 671 gram of fine gold.”
U. S. Congress, Senate, Committee on Banking and Currency, Bretton Woods Agreements Act, Hearings on H.R. 3314 (79th Congress, 1st Session, Washington, June 12–16, 18–22, 25, and 28, 1945), pp. 501–502.
In the past, gold was sometimes called the “ultimate” reserve asset. One reason for this usage was that other reserve assets are defined in terms of gold as the common denominator (see Article IV, Section 1). Another reason was the structure of the international monetary system in which the convertible currencies of members of the Fund are convertible into U. S. dollars and the United States had declared that it maintained the value of the U. S. dollar by means of gold transactions with the monetary authorities of other members (see Article IV, Section 4(b)). The adjective “primary” seems to be intended to convey an idea of desirability or superiority because it is attached to the assets in which the settlement of surpluses and deficits in balances of payments may have to be made in the future.
Special drawing rights, gold, and “reserve positions in the Fund” (see Article XXXII (c)) are regard as “primary” reserve assets.
Robert Triffin, Gold and the Dollar Crisis: The Future of Convertibility (New Haven, 1961), pp. 102 ff. (Compare Chapter IV of the Report on Reform referred to in footnote 21.) Economists have been devoted to the word “bancor” and have recommended its use in connection with proposals of their own (see, for example, Albert G. Hart, Nicholas Kaldor, and Jan Tinbergen, “The Case for an International Commodity Reserve Currency,” UNCTAD E/CONF. 46/P/7 (Contributed Paper 7), 17 February 1964, p. 15) as a tribute to Keynes (see John Parke Young, “The Dollar Standard Versus an International Currency,” Euro-money, Vol. 3 (October 1971), p. 38).
The word “dura” (“durus,” “durum”) in Latin has other meanings, not all of which would be as felicitous: “hard; lasting; rough (to the senses); tough, hardy, hale; rough, rude, uncouth; shameless, brazen; harsh, cruel, callous, insensible; severe, oppressive; parsimonious, miserly,” New College Latin & English Dictionary (1966), p. 94.
“The Bernstein ‘C. R. U.’ Proposal,” in Compendium of Plans For International Monetary Reform, ed. by Robert G. Hawkins (New York University, C. J. Devine Institute of Finance, The Bulletin, No. 37–38, December 1965), pp. 83–95.
Edward M. Bernstein, “International Monetary Reserves and the Composite Gold Standard,” in Next Steps in International Monetary Reform, Hearing Before the Subcommittee on International Exchange and Payments, Joint Economic Committee (90th Congress, 2nd Session, Washington, September 9, 1968), pp. 3–13.
Report of the Study Group on the Creation of Reserve Assets: Report to the Deputies of the Group of Ten (Washington, May 31, 1965), para. 28, p. 26.
International Monetary Fund, Summary Proceedings of the Twenty-Fourth Annual Meeting of the Board of Governors (Washington, September 29-October 3, 1969), p. 58.
It would not be a neologism in French. It has a number of meanings in that language, among which some would be more congenerous than others with “cru” as the name of the reserve asset:
“cru (1) [kry], n.m. Growth; production (esp. of wine); vine-estate, vineyard; soil; (fig.) invention, making, fabrication. Boire du vin de son cru, to drink wine of one’s own growth; cela n’est pas de son cru, that is not his own idea; des fruits d’un bon cru, fruit of a good soil; les grands crus de Bourgogne, famous Burgundy wines; vin du cru, wine of the country.
“cru (2) [kry], a. (fem, crue (1)) Raw, uncooked, indigestible; unwrought; (fig.) crude, coarse, rough, harsh, indecent, smutty, obscene; (C) sharp (weather). À cru, on the bare skin, next to the skin; couleur crue, harsh colour; cuir cru, undressed leather; eau crue, hard water; monter à cheval à cru, to ride a horse bareback; tout cru, quite raw; une lumière crue, a hard light,” The New Cassell’s French Dictionary: French-English, English-French (New York, 1962), p. 214.
In a letter to The Times (May 17, 1943), p. 5.
St. Matthew XXV: 14–30.