New Britain herald., 1915-06-22
BRITISH WAR LOAN
NOW FIVE Billion
Parliament Provides New Chan
cellor Of Exchequer With Check

London, June 22.-The house of
commons adjourned last night after
unanimously giving first reading to
the bill providing the new chancellor
of the exchequer, Reginald McKenna,
with blank check which may
amount, at a maximum, to 100000
900 pounds Csc, 900, 900. o00).
The vote of credit for $3.50, 900, 900
t$1,250, o0o.oO passed last week by
the house simply authorized the gov
ernment to spend that much for war
purposes, but did not provide for the
manner in which this sum should be
raised. Last nights enactment was
in the form Of resolution which fur
nishes the government not only the
$50, 100000 pounds deemed necessary
to pay the cost Of the war. at the rate
Of 100000 pounds sterling daily, for
a limited period, but as much more
as may be needed
Makes Long Explanation.
The chancellor of the exchequer
made long explanation of the pro-
posed loan and, in closing, said that
on the technical question as to the
limit of the loan it would be danger
Gus to disclose the necessity for not
hiking any definite sum, and he added
that the only figures he could put in
the Dill was a maximum which would
cover all requirements of the new
loan, including provisions enabling
the subscribers to previous war loans
and the holders of consols to par
tlc1pate. This maximum would not
fall far short of a thousand million
pounds sterling. III
The new loan which, as now pro-
cided for, is of an indefinite amount,
will be issued at par, will bear in
terest at the rate of IL per cent
and will be redeemed at the option
of the government between 1925 and
1915. While the chancellor of the
exchequer Is to receive a blank check
for 1000, 100000 pounds, he explained
in his speech that. he did not say
he was asking for this sum, and if.
he did not get 1t, the loan would not
be a failure, as he really did not ex-
pect to get that amount, nor did he
really want it. He deemed 1t advis-
able, however, to fix upon a sum to
meet adequately the necessities of the
situation. The chancellor said he
wished to appeal to the patriotism of
the country to use its gigantic re-
sources to carry on the war success
fully for ourselves and our allies and
added: L want the public to lend
the money in a way which will not
oblige us to repay during the war
Loan FavorabIy Received
Although the stock exchange had
closed before Mr.. McKenna's state
ment was published the proposed new.
loan is said to have met with a favor
able reception in the financial dis
trict. but it is not yet possible to say
how the terms Of the loan will affect
other kindred issues, such as consols
and last November's war loan
The generous terms provided for
holders of consols and the first loan
war securities appear to meet the OBJ
jections that have been urged in
financial circles to the issue of a 41-2.
PEI cent. loan.
One Step at a Time.
\ During the course of his speech
in the house, the chancellor of the
exchequer answering the suggestion
by additional taxation, said that it was
best to take one step at time. If,
owing to the continuance of the war,
It became necessary to find further
very large sums it was obvious that
additional taxation would have to be
proposed, but, he added, that time had
not yet come
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