ABSTRACT
In formulating his scheme for an International Clearing Union, John Maynard Keynes obviously had to abandon the bilateralist approach which he had espoused prior to the outbreak of World War II. Keynes fully recognized that there were many facets to the post-war problem of international trade and finance. However, he believed that the mechanism of currency and exchange in international trade should be given first consideration. The main purpose of Keynes' Clearing Union Plan was to assist the nations of the world to enjoy more fully the advantages of mutual trade. Under the Keynes Plan the value of bancor would be defined by the Governing Board in terms of gold; however, it would be subject to change from time to time. Keynes had suggested that monetary reserves be supplanted by the drawing of advances in the form of bancor from the Clearing Union.
