ABSTRACT
The World Bank could then function precisely as an ordinary Central Bank. Its assets would consist of gold, securities, and discounts, and its liabilities of the deposits of Central Banks. It would be both unnecessary and inexpedient for the World Bank to issue aureal notes. Drafts on the World Bank would then replace actual gold in the settlement of international balances of payments. Drafts on the World Bank sold by the various Central Banks would then be cleared at the World Bank itself, and balances transferred from the account of one Central Bank to that of another, as the reserve balances of member banks are transferred through the medium of the national clearing house. The World Bank for its part would guarantee the gold value of the aureal. The success of the credit policies of the World Bank is bound to be largely dependent upon the degree of support which the Central Banks accord it.
