FINANCIAL TRANSACTIONS

Waikato Times, Volume 128, Issue 21416, 9 May 1941, Page 6

FINANCIAL TRANSACTIONS

BRITAIN AND AMERICA WIDER BORROWING POWERS REQUEST FOR LEGISLATION iUnited Press Assn..— Elec. Tel. Convrlgiu) (Received May 9, 3.15 p.m.) WASHINGTON, May 8 Mr Jesse Jones, Federal Loan Administrator, has asked Congress for legislation permitting the Reconstruction Finance Corporation to lend money to the British Government against holdings i'n the United States, increasing the Reconstruction Finance Corporation’s borrowing power by 1,500,000,000 dollars, authorising the creation of additional corporations to engage in varied activities, such as financing pilots while they are being trained, and laying down Govern-ment-owned external air lines, as in Latin America.

Mr Jones explained that the proposed bill would enable them to forestall the liquidation of British holdings, American securities and British investments at distress prices. The desire for Britain to retain the ownership of some holdings here while using collaterals to pay for armaments was indicated last month, when the Reconstruction Finance Corporation authorised a loan of 40,000,000 dollars to Brown and Williamson Tobacco, which is wholly owned by the British-American Tobacco Company.