CANADIAN PUBLIC DEBTS

Press, Volume LXXI, Issue 21655, 13 December 1935, Page 15

CANADIAN PUBLIC DEBTS

Sweeping Conversion Proposed COMPULSION OF OVERSEAS BONDHOLDERS (UNITED PSNSS ASSOCIATION —COPTBIOHT.) (Received December 12, 9.50 p.m.) NEW YORK, December 12. The Ottawa correspondent of the “New York Times” learns that Mr M. Hepburn, Premier of Ontario, laid before 'the conference of provincial premiers to-day a proposal for a sweeping conversion of Canada s Federal and provincial debts in accordance with the Australian plan. Mr Hepburn said that he had proposed that the compulsory feature should apply to foreign, as well as Canadian holders of Government bonds. This had frequently been declared impossible by the former Prime Minister of Canada. Mr R. B. Bennett. It is understood that Mr Hepburn said it would be better for the bond-holders to receive a reduced rate of interest of which they were certain, than to drive some of the provinces to default. One of these, Manitoba, was devoting 65 cents of each dollar of revenue to pay interest on its indebtedness. Under the new plan the Dominion would guarantee the provincial debts, and supervise provincial finances. SCHEME FOR REFUNDING DEBT REDUCED RATE SOUGHT FOR 4,000,000,000 DOLLARS (Received December 12, 7.5 p.m.) OTTAWA, December 11. Similar to the Australian plan, a comprehensive proposal to refund the entire public debt of Canada. 4,000,000,000 dollars, at a rate just exceeding 3 per cent, instead' of 5 per cent, is being worked out by the finance committee of the Dominion Provincial Conference. The provinces would waive financial autonomy in return for Dominion bond guarantees.