CANADIAN LOANS

Greymouth Evening Star, 13 December 1935, Page 14

CANADIAN LOANS

CONVERSION SCHEME. [by CABLE —PRESS ASSN. —COPYRIGHT.] NEW YORK, December 11. The Ottawa correspondent of the “New York Times” learns that Premier Hepburn, of Ontario, to-day, laid before a conference of the Provincial Premiers 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 the foreign holding of the loans as well as to the Canadian holders of Government bonds. This, Mr Bennett, late Prime Minister, had frequently declared to be impossible. It is understood that Mr Hepburn intimated that it would be better for the bondholders to receive a reduced rate of interest of which they were certain than to drive some of the provinces to default, ,one of which, Manitoba, was devoting 65 per cent, of each dollar of revenue to pay interest on its indebtedness. A Dominion guarantee for the provicial debts, with attendant supervision of the finances of the provinces, was also proposed. COLONIAL LOANS. RUGBY, December 11. Mr J. H. Thomas, in reply to a Commons question, stated the possibility of converting outstanding colo- . nial loans was under constant review, and where an option existed or was about to mature, advantage was taken of the opportunity to convert or repay a loan.