Alvin Hansen Tells Of Economic Plans

Alvin H. Hansen, professor of Political Economy and one of the special economic advisers at Bretton Woods, last night carried the fight for enlightenment on the international economic proposals to a Harvard-Radcliffe audience in an informal address at Cabot Hall. The meeting was sponsored by the Harvard Liberal Union, the Radcliffe Forum, and the Radcliffe League for Democracy.

Emphasizing several little-publicized aspects of the proposals, which are scheduled for early consideration by Congress, Professor Hansen pointed also to the changed economic attitudes displayed at the New Hampshire conference by the delegates. Following a discussion of the history of world monetary problems in the period between the World Wars, the noted business cycle theorist discussed the better known institutions proposed at the conference, the International Bank for Reconstruction and Development and the International Monetary Fund. Broadly, he stated the aim of these agencies to be the preparation of the way for a multi-lateral trade structure.

Bank and FHA

Explaining the function of the International Bank, Professor Hansen stressed the analogy between the background and aims of this world banking institution and the Federal Housing Administration in this country. Just as the financing of home construction in the United States was plagued by the insecurity of leans and "fantastic" interest rates, so, Hanson stated, were international loans characterized by a lack of security, high interest rates, and a failure to demand productive use of the borrowed funds.