Lower Interest or Default

Horowhenua Chronicle, 13 December 1935, Page 6

Lower Interest or Default

CANADA PREPARES FOR CONVERSION LOAN (By Telegraph-Press Assn.-Copyright) Received Thursday, 9.20 p.m. NEW YORK, Dee. 11. The Ottawa correspondent of the New York Times learns that Premier Ilcpof Ontario, to-day -aid before a conference of provincial Premiers a proposal for a sweeping conversion of Canada’s federal and provincial debts In accordance with the Australian plan. Mr. Hepburn said he had proposed that the compulsory feature should apply to foreign as well as Canadian holders of Ocvernment bonds. This the late Federal Prime Minister, Mr. R, B. Ben-

nett, had frequently declared impossible. It is understood Mr. Hepburn intimated that it would be better for bondholders to receive a reduced rate of interest of which they were certain than drive some of the provinces to default, one of which, Manitoba, was devoting (55 per cent, of each dollar of revenue to pay its interest Indebtedness. A Dominion guarantee to the provincial debts with attendant supervision of the finances is also proposed.