TRADE AND FINANCE

Evening Post, Volume LXXXVIII, Issue 59, 7 September 1914, Page 8

TRADE AND FINANCE

FACILITIES FOR REMOVAL OF ,' DIFFICULTIES. LONDON, sth September. After consulting leading bankers and traders, Mr. Lloyd George (Chancellor of the Exchequer), in order to facilitate the remox'al of difficulties arising from the breakdown of foreign exchanges, has secured an arrangement xvhereby the Bank of England, where required, will provide acceptors with funds to pay all approved pre-moratorium bills at maturity. • This .xvill release the drawers and endorsers of such bills from their liabilities a* parties to bills, but their liability under any agreement with the acceptors for payment of cover is retained. Acceptors must collect from their clients all funds due to them as soon as possible, and apply those funds to the repayment of the aforesaid ad.vances, whereon interest will be charged at the rate of 2 per cent, above the ruling bank rate. The Bank of England undertakes not to claim repayment of the amounts not recovered by acceptors from clients for a period of one year after the close of the war. Until the end of fuis period the Bank of England claims to rank after claims in connection xvith post-moratorium transactions. In order to facilitate ' fresh business the movement in produce and merchandise from and to all parts of the xvorld the joint stock banks have arranged, xvith the co-operation, if necessary, of the Bank of England and the Government, to advance to clients the amounts necessary to pay acceptances on maturity where funds have not been provided in the due time by acceptors' clients, but the acceptor roust satisfy the* banks regarding the nature of the transaction and the reason why money is not forthcoming from his client. The Government is negotiating xvith a view to Assisting the restoration of exchange betxveen the United States and Britain.