▁foreign ▁exchange ▁to ▁stabil ize ▁the ▁exchange ▁value ▁of ▁the ▁doll ar . ▁The ▁ES F ▁as ▁originally ▁designed ▁was ▁part ▁of ▁the ▁executive ▁branch ▁not ▁subject ▁to ▁legisl ative ▁o vers ight . ▁ ▁The ▁Gold ▁Reserve ▁Act ▁author ized ▁the ▁ES F ▁to ▁use ▁such ▁assets ▁as ▁were ▁not ▁needed ▁for ▁exchange ▁market ▁stabil ization ▁to ▁deal ▁in ▁government ▁se cur ities . ▁The ▁Fund ▁had ▁no ▁stat ut ory ▁authority , ▁however , ▁to ▁eng age ▁in ▁other ▁activities ▁that ▁it ▁began ▁to ▁undert ake . ▁The ▁principal ▁such ▁extr aneous ▁activity ▁it ▁devoted ▁itself ▁to ▁was ▁l ending ▁dollars ▁to ▁polit ically ▁fav ored ▁govern ments . ▁ ▁In ▁ 1 9 3 8 – 4 0 , ▁the ▁director ▁of ▁the ▁Division ▁of ▁Mon et ary ▁Research , ▁Harry ▁D ex ter ▁White , ▁worked ▁on ▁a ▁proposal ▁for ▁lo ans ▁to ▁Latin ▁America ▁and ▁participated ▁in ▁plans ▁for ▁an ▁Inter - American ▁Bank , ▁which ▁did ▁not ▁material ize . ▁The ▁plan ▁for ▁an ▁Inter - American ▁Bank , ▁however , ▁inspired ▁White ' s ▁first ▁draft ▁of ▁the ▁subsequent ▁plans ▁for ▁the ▁International ▁Mon et ary ▁Fund ▁and ▁the ▁World ▁Bank ▁that ▁White ▁prepared ▁in ▁ 1 9 4 1 ▁at ▁Secretary ▁of ▁the ▁U . S . ▁Tre as ury ▁Henry ▁M org enth au ' s ▁direction . ▁ ▁It ▁was ▁fund ed ▁by ▁Franklin ▁D . ▁Ro ose vel t ▁under ▁the ▁Emer gency ▁Bank ing ▁Act ▁of ▁ 1 9 3 3