Stupendous I. O. U.

At Basle, Switzerland, where most of the railroads of central Europe crisscross, met last week for their first official session the board of directors of the Bank for International Settlements * or "B. I. S."

Sole Work Done: Salaries were fixed as follows:

President and Board Chairman Gates Wr. McGarrah; $50,000 (as president of New York's Federal Reserve Bank, his last job, he also received $50,000).

Deputy Board Chairman Leon Fraser: $40,000.

General Manager Pierre Quesnay. "The Bright Young Man of the Bank of France": $30,000. (President Gaston Doumergue of France receives $200,000 "salary and allowances." exactly twice the stipend of President Hoover.)

Germany, tardy, kept the B. I. S. waiting nearly all week for her "certificate of indebtedness," the stupendous I. O. U. which will be held as security for the Young Plan bonds of which $300,000,000 worth will be issued next month. The B. I. S. prepared last week to issue this week $68,000,000 of its $100,000,000 capital stock. In Manhattan the House of Morgan will handle the U. S. share of this allotment, already in enormous demand.

* As a sop to Teuton sensibilities "German Reparations" were rechristened "International Settlements" when the (Owen D.) Young Plan superseded the (Charles Gates) Dawes Plan (TIME, June 10).

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