AN URGENT PROPOSAL

Dominion, Volume 9, Issue 2644, 15 December 1915, Page 5

AN URGENT PROPOSAL

TO REGULATE THE EXCHANGE RATE BIG DEALaIN SECURITIES Br Telflsrapl—Pneßa Association—Copyright (Eec. December 14, 5.20 p.m.) ■ London, December 13, In the House of Commons, Mr. R. M'Kenna (Chancellor of the Exchequer) said that the Government was dealing n' scheme to utilise American and Canadian securities held in Britain. He believed that tho amount which was held here would be sufficient to pay our debts to the United States and keep up the exchange rate. One estimate of the American securities held hero placed the amount at between seven arid eight hundred millions. The Treasury was prepared to tako these securities cither by purchase or loan, the former holders , to receive 5 per cent, five years' Treasury bonds, while the , lenders receive the present interest,' plus 10s. per oent. PROPOSAL EXPLAINED. (Rec. December '14, 11.5 p.m.) London, December 14. Mr. M'Kenna explained that the primary object of the proposal was to purchase the securities outright, but ho recognised that many of the holders would be unable to sell, and his loan , proposal had been formulated as an , alternative, whereby securities would be loaned to the Government for two years, the Treasury having power to sell them to America, allowing tho lender 2J-.per centum extra on the price realised, in order to cover the exchange difficulties. The Treasury's power to sell the securities was indispensoblo. Not even the inveterate pessimists had 'raised the question of our capacity to moot all our liabilit}', provided our resources' were liquefied and we were given time. The new demands which we were compelled to make on Amefe had exhausted tho large surplus, and overy care should be exercised to see » that we did not embarrass America. ' Mr. M'Kenna added-; "Your accept--1 ance of this proposal is urgent."