New-York tribune., 1914-11-28
DECLARES BRITISH
FINANCE is SAFE
LLOYD George Asserts u. S.
Owes Great Britain
Five Billions.
DEBTS DUE ABROAD
CAUSE OF DEADLOCK
Chancellor Points Out That
British Exchange Has Been
Made Unimpeachable.

London. Nov. 27.-ln statement
concerning financial conditions IN the
country David Lloyd George. Chancel-
lor Of the ExcheQucr, told the house,
o. Commons to-day that the financial
deadlock which followed the outbreak
of war was due TO inability 10 collect
outstanding debts abroad.
As an instance, Mr.. Lloyd George re-
fcrred 10 the United States, which. he
said. owed Great Britain about thou
and millions sterling tS5,OOOOOo,oOQ)'
"but We could do no business ne
added
1--WE had not merely our own busi-
ness TO ram" the Chancellor OF the
FNchcuuer continued. but we were an
essential part Of machine that ran
the international trade Of the world
We carried half the produce and pro
v.ded the capital that moved ms piou-
uce from one part Of the world TO an
other. not merely for ourselves but lor
other countries
Giving instances, the Chancellor re,
f,rred 20 the cotton trade, and sa'd
that all the movements from the plan
tgtions to the ultimate destination OF
the cotton were represented by paper
signed either at London. Manchester or
Iiverpool. When the United States
bought cotton. or silk, or tea IN CHINA
payment was made through London by
means Of these documents.
Confusion Inevitable.
That showed, Mr.. Lloyd George said,
how complicated the system was. The
paper issued i'm London had become, a
part Of the currency OF the world
Into this fine, delicate paper machinery
had crashed a treat war, affecting two
thirds of the people of the whole
world. and confusion was lnevltaoIe.
Il was as If violent kick had been
given 20 an ant heap, and for mo-
ment there were confusion and panic.
The deadlock which existed. the Chan
cellor pointed out. was not due TO any
lack of credit in this country. u was
due 10 the failure of remittances from
broad.
Nlr. Lloyd George told his hearers
tia, the action which the British gov
orrmcnt had taken was to save British
trade. British commerce. British labor
and British lives. The government had
lyDothccated the credit of the state TO
restore these exchanges, upon which the
commerce and industry Of the country
Cercndcd and upon which the whole
community depended for their daily
Hfe.
Bv this step. the speaker said, the ur-
imDeachable character of the British
bin Of exchange had been maintained.
Il was vital TO the good name Of this
country that this type of British paper.
which had become currency for the
whole Of the trade Of The world, should
be unimpeachable. and that no one
should say hereafter that in day Of
crisis it had been dishonored.
Bank of Englands Work.
7 One hundred and twenty million
hounds sterling $500 oc)o0o) OF hiils,
/ Nr. LLOYD George continued, had been
+ discounted by the Bank OF England and
l that showed that out of total of be-
+ tween e300,0O0000 and 9500,O00OOO
sterling of bills out NJ the beginning OF
the war greater part was disposed OF
iD the ordinary course. The total
amount Of bills which had arrived at
maturity and for which the Bank OF
England had found money was s6O,3o6,-
COO Il was estimated that al the end
e the war there would be about $780,
100000 of bills in what he would call
"col0 stor through their belonging
10 bellgcrent countries or for other
reasons.
! There would not be a penny lost 70
+ the great accepting houses, and the
total loss upon the whole OF these
transactions, .he Chancellor estimated
would not be equal to the cost OF a
single week of carrying on the war, an
in addition British commerce and in
0ustry would be saved from one Of the
worst possible catGstrophes.
rrfH I / D. . Z.
success of the measures taken to deal
with the Stock Exchange He said the
government had made 10 a condition
that the exchange could not reopen
Without the sanction of the Treasury
lie declared the British money market
was in better position now than any
other money market in the world The
Treasury had just foated the largest
+ loan ever raised in the history Of the
world. and the success Of this measure
he said, he took as justification Of the
governments action.
Mr.. Lloyd George pointed out that
before the loan of c350,000000, he haC
already raised 100000 lS450,000,
O0O) for the same purpose, so that
practically he had asked for $4,000,
. 600 $4,000, 0,000) 900 from the same
/ market.
Great Loan Oversubscrbed
In spite Of the absence Of the ma
chinery Of the Stock Exchange, which
was serious detriment, the entir,
loan had been oversubscribed. Their,
were nearly 100000 applicants, ant
the government felt it was its duty tC
give the first allotments TO the smal
applicants, who, with the fnancia
, houses, had enabled the government L
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