The sun., 1915-10-13
Chancellor Mckcnna Secures
Immediate Passage of Bill
Governing Issue.
PLEADS FOR MEASURE
Some Criticism Follows His
speech. but House Is
Prompt to Act.

war. TIC galleries were crowded with
many interested spectators and every
member not away on military duty was
N his seat.
The terms of the Anglo French loan
negotiated in New York since Parliament
adjourn ed were the first business OF i'm
portance taken up. Reginald McKenna.
Chancellor of the EXcheuuer. said that
,ne terms upon which this loan had been
secured 10y the Allies were fair and that
the Government strongly recommended
the loan to Parliament and immediate
passage through all stages.
He SAID that deducting accrued in
terest the British 4i2 per cent. loan now
stands at 96i,. AS the American under.
writer's took the loan Mt 90. he argued,
Great Britain was merely paying II of
1 per cent. more than the market rate.
Ray ing BritRin's Debt.
The ban" said Mr. Mckenna. lis
for IN. purpose Of paying our trade
debt and maintaining our exchange In
the United states our imports from
North America have largely Increased
since the beginning of the war, and our
exports have diminished. The increase
IN imports for the first six months OF
1915. excluding Government supplies
not included in the customs returns,
amounted to f5S. 100000 Cs292.5OO .OOO),
and the reduction In exports during the
same period was 1000, 000, thus maxi
ng the adverse balance f7o.0O0.0OO
S5JO.uuO.u0O).
Some relief for this balance against
US may be obtained by the sale In
America of securities held In this coun-
Try. Every effort has been made to OBJ
tain relief from this source. but of
itself this will be insufficient.
I'VE should not be doing our duty"
continued Mr.. Mckcnna. ''if we neg
lected to take other means of maintain
ing the normal level Of exchange l
avn sure the House will desire to ex-
press its thanks to the commission. Its
members accomplished their task with
skill and success.
THE American people are not accus-
toned to large external loans. and be-
lsyc this is the first of any magnitude
in the whole history OF the United
States We must not overlook the fact
that there are many cross-currents of
opinion in that country.
Although the transaction was purely
NJ The purpose of meeting Liabilities
already incurred. no little opposition
vas raised by some parties whose M
lSthics We're not on the side of the Allies.
/ hope the existence of these parties will
rot be overlooked during the debate, and
tNat care will be taken to avoid the use
Of any language that might be twisted
b. hostile element to It's advantage and
to the dctrimcnt of the Allies
\ Trade Ira nsRctiOn.
"Tuc loan is trade transaction, its
S Uni hI In I
confidently recommend its acceptance by
the House
Mi Mckenna pointed out that the ar
rImcn' that the freedom of the loan from
The inrumc tax was equivalent to paying
an additional | per cent. was rallacious.
Putting the sum that Great Britain owes
the United States to-day for trade en-
gacemcnts at s25o,0o0.00O. the amount
could only be- paid by the export of
capital, presumably American securities.
But" he added. I'VE said to our
American creditors, Allow us to defer
payment upon such terms as can be
arranged They agreed. and we were
thereby enabled to retain 100000, 600
Of capital which we must otherwise
have exported, and when we retain that
'aptal We get the income tax on the
dividends from it,"
Mr. Mckenna in reply to criticism
sad the House had received the pro-
poSal more favorably than he had ex-
pected. ~ for the nation to pay q per
cent, for an Anglo-French loan at any
time was startling. but when the MEM
bers mombercd the circumstances he
thought they would agree that the COM
mission had done extremely well.
ut has been said" he continued, that
ne Americans have obtained an excep-
t'onally good bargain, but they were
onered double the bargain and they
would not take II.
inablc 10 Get More.
I'VE tried" said Mr.. McKenna, "to
eet tenO 600, 900 then f160, 1000, 900. then
tlfooon.o ooo, but we could not get more
than tl00, GOO. 900"
There was some criticism of the rate
~ Interest. John Dillon. supporting the
terms. declared the success Of the loan
was an index Of popular sentiment in
America toward the Allies.
III was "A business transaction, but
moro than that" he said, "and 9, Z or
per cent would not have succeeded
N obtaining the money il II had not
ue'o for a deep wave of sympathy in
America IN favor of the Allies 1t Is.
therefore, mistake to crtcise the
loan, To- which We are now committed,
h',l taken advantage of our necessities"
NT Henry James Dalziel thought Mr..
i'ion Interpretation Of criticisms OF
N" loan unjustitied
~Wc are all one in our sentiments
.o"a'd the American people" he said,
~ the criticisms made are honest
ana based on financial considerations
tlone"
large majority of the members
Sd,e IN" bill their unQRalifel support
ana II Ms passed unanimously
u Us not thought here that the pas
S''f OF the loan bill will have an i'm
'eu.Hie effect on the rate OF exchange
IN 'd'' II Is believed the Government
WI. nov" - come into The market and
eel 'A.hdnSe before any pronounced
wy "runncut Improvement can be at
'"'l' Io-day's news from New York
.'' .h' British financial commission
we discussing the exchange problem
,h' 'h' establishment Of Il further credit
nay slight hardening effect on the
late
y" Tax Wnr Eiims.
In' finance bill to be Introduced by
'' 'oanc"llor of the Exchequer to-
wv provides, among other things,
~ ~ per cent tax on war motion
P''nfa illms, the tax to be charged
'H''hSl IN" length, not the value of the
nun II will be ! cent per foot for