BRITISH SECURITIES

Auckland Star, Volume LXXII, Issue 172, 23 July 1941, Page 7

BRITISH SECURITIES

Millions Of Dollars To Pay For War Supplies Br:t.sh OIIIm] Wireless. Rec. 1.30 p.m. RUGBY. July 22. The Chancellor of the Exchequer. Sir Kingsley Wood, informed the House of Commons to-day that, with the approval of President Roosevelt. their Reconstruction Finance Corporation had authorised the loan to the British Government of 42">.OO0.0O0 dollars, and an agreement, the terms of which had neen published as a White Paper. \va> signed yesterday Sir Kinpsley Wood >a'd that the purpose of ihe loan was to provide the British with exchange to he used towards paying for war supplies contracted prior to the enactment of the I.end-and-I.ease Ait. Tine loan is to bear inteiest at the rate of ."'. per cent per annum and to mature in 15 years, and there is a provision that, if two-thirds of the capital has been repaid at the end of that period, an extension of live years may be granted. As collateral security. shares representing direct investments and certain marketable securities, including those of British-owned insurance companies in the United States are pledged. It is emphasised that there is to be no change in the control or management of these direct investments, including those of the insurance companies. The Chancellor read to the House the announcement of this loan which is being made in the I"nited States to-day. According to this announcement the present value of collateral security is about 500.000.000 dollars in adition to the earnings of branches of 41 British insurance companies not incorporated in the United States and which will be assigned to the Reconstruction 1-inance Corporation.