CANADA’S DEBTS

Hokitika Guardian, 13 December 1935, Page 5

CANADA’S DEBTS

SWEEPING CONVERSION PLANS

< United Press Association—By Electric Telegraph—Copyright).

NEW YORK, December II

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 . Australia plan. An Hepburn said that he had proposed that the compulsory feature should apply to the foreign holding of the loans as well a to the Canadian holders of Government bonds.. This Mr Beiinett, late Prime. .Minister, had frequently declared to be impossible. ' • It is understood that,Air Hepburn intimated that- it would be better foi 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, Alanitoba, was devoting 60 per cent, ot each dollar of revenue to pay interest on its indebtedness.

A Dominion guarantee for the provincial debts, with attendant supervision of the finances of the provinces was aiso proposed.

IN IBREST RED UCTION

OTAWA, December 11

Similar to the Australian Premier’s plan, a comprehensive proposal to refund the entire our billion dollar public debt of Canada at a rate just exceeding three per cent instead of tve, is oc;ng worked out. by the Finance Committee of Dominion Provincial > onference Provm.es would waive fio. iciaJ autonomy, in return for Dominion bond guarantees.