THE AMERICAN LOAN.

Ashburton Guardian, Volume XXXV, Issue 8269, 14 October 1915, Page 6

THE AMERICAN LOAN.

i BILL IN THE HOUSE OF COMMONS. HIGH TERMS UNAVOIDABLE, AMERICA MASTER OF'THE SITUATION. LONDON, October 13. In the House' of Commons, _Mr McKenna introduced the American Loaa Bill, and explained its purpose. The Bill was read a third time after Home criticism on the ground of the high underwriting commission of 2 per Mr McKenna stated that the imports from America had increased in tho arst six months of 1915 by £58,000,0uU, exclusive of Government supplies. The reduction in our exports to America in tho same period was £12,000,000. Replying to criticism, Mr McKenna aaid that the Commissioners had vainly a&ked for £200,000,000, then for £140,000,000, which request was equally vain. All they were able to get was £100,000,000, and there was .no groat rush co offer tha.t. While, therefore, from the British point of view the. terms were startling, the American point of view was quite different.- ■ , Tho majority of the speakers agreed that the torms were the best, obtain«blo- Wo pressed for the loan, and ' vrere obliged to pay American terms. Mr L. W. Evans urged that, with a viow to preventing a further fall in the exchange rate, we should comntandeer foreign securities, held by British investors and use them to restore the balance. Others approved of this, adding tkat the war loan should be used in payment of commandeered securities. > Mr McKenna replied that he had laeen attracted by the idea, but a difficulty arose in the case of securities paying 8 to 10 per cent.