Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1914-12-02
ENGLAND'S CREDIT
IS FIRM As ROCK
AYERS CHANCELLOR
Lloyd George Announces Big
War Loan Has Been Over
subscribed BY Many
Millions.
EXPLAINS TRADE CONDITION
Commerce of Britain AS Well
AS That of World Has Sur
vived First Shock of
War, He Says.
EXPLAINS TRADE CONDITION

War, He Says.
London, Nov. 2S.-Chancellor of the
EAchequer Lloyd George IN
the house of commons today that the
wal loan of $3.50. 900, 1000 Isl, 75o.O Oo, Ooop
had been greatly oversubscribed.
The chancellor gave no figures. He
loan was the enormous umb of in
dlViduals. totaling nearly 0 10000, who
had made application for small sums.
These. the chancellor declared, would
receive the first allotments.
In the course of a statement concern
ing financial conditions in the country,
chancellor Lloyd George today stated
that the financial deadlock which FOL-
lowed the outbreak of war was due to
Inability to collect outstanding debt
abroad.
Uncle Sans Debt.
AS an instance. MIR. Lloyd George
referred to the United States, which he
said, owed Great Britain about an
l,000.0 900. 900 (S5. 900, 600. 000) but W.
could do no business. he added.
Dealing with the steps taken by the
government to assist during
the war. Mr.. Lloyd George aid that
the government had undertaken re-
sponsihilities which no government ev-
err had been called upon to assume
before.
we ilad not merely our own DuSl-
ness 10 rum" the chancellor of the ex-
chequer continued. but we were an
essential part of a machine that runs
the international trade of The world.
We carried half the produce and pro-
vided the capital that moved this pro-
duce from one part of the world to an
other, not merely for ourselves but for
other countries"
Giving instances he referred to the
cotton trade and said that all the move
ments from the plantations to the ulti-
mate destination of the cotton were
represented bv paper signed either at
London. Manchester or Liverpool. When
the United States bought cotton or silk
or tea in China payment was made
through London by means of these
documents.
System Complicated.
That showed, Mr.. Lloyd George said,
how complicated the system was. The
paper issued in London had become a
part of the currency of the world. Into
this fine. delicate paper machinery had
crashed II great war, affecting two
thirds of the people of the whole world
us ii Il violent kick had been given to
an ant heap and for a moment there
was confusion and panic.
The deadlock which existed. the
chancellor pointed out. was not due to
any lack of credit in this ountry 1t
was due to the failure of remittances
from abroad.
Mr.. Lloyd George told his hearers
that the action which the British gov
ernEent had taken. was to save Brit
ish commerce. British labor and Brit
ish lives. The British government, he
said, had hypothecated the credit OF
the state in order to restore these ex-
changes upon which the and
industry of the country depended for
their .!aily YES.
Exchange Maintained.
BY this step. the speaker declared,
bill of exchange had been maintained.
1t was vital to the good name OF this
country that this type of British pa
per. which had become currency for
the whole of the trade of the world,
shnul be unimpeachable and that no
one should say hereafter that in a day
OF crisis 1t had been ~dishonored.
One hundred and twenty million
pounds sterling ($6OO. 900. 000) of bills.
Mr.. Lloyd George continued. had been
discounted by the bank of England and
that showed. he said. that out of a
total of between E30O, 600, 900 and $780,
900, 600 sterling of bills out at the
beginning of the war a great part was
disposed of in the ordinary course.
The total amount of bills which had
bank of England. nae found money was
e60.3s6 900 sterling. 1t was estimated
that at the end of the wal there would
be about 100000. 900 of bills in
what we would all ''cold store
through their belonging to belligerent
countries or for other reasons. There
would not be a penny lost to the great
accepting houses and the total loss
upon the whole of these transactions.
he estimated. would not be equal to the
cost OF a single week Of carrying on
the war and in addition British com
merce and industry would be saved
from me of the worst catastrophes.