New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-14
Commons Passes Second
'G beading of Bill to OBJ
tain Securities.
WILL USE HOLDINGS
",SIOAN COLLATERAL
lament Will Not Swamp
wv, ,,o,ican Market, Says
chancellor McKenna.

,..so,. Dec. 13.-After an expiana-
The Chancellor Of the Ex-
700 .s, Reginald McKenna, and a
'h'9''5 .,..e the House Of Commons
'a'i' !, his evening the second read
l .s,he bill empowering the govern
~ 20 mobilize American and Cana
n a ..,urities, By purchase or by
'1D them, to be used primarily
80. collateral for loans or IN case OF
.,,,v 10 be sold 70 meet Great
o..,,ins liabilities in the United
Ssiss ,..r,
an, and the Chancellor made it clear
-. he government had no intention
:, stamping the American market
=, securities, which would be unfair
:, holders here, as they were to be
ala FOR at the market price.
NJ. MeKenns explained that the
.,,,l trade balance in favor Of Great
attain had been exhausted by the
,,,, demands made upon America for
,,si, for England and her allies, and
.s.,nOunts paid in interest on foreign
,,,uri,ies held here or earned by Brit
n shipping we're not sufficient to set
,bis right. Consequently, in order to
rae, liabilities in the United States
they we're obliged 10 60 outside the
ordinary course Of trade and had to
borrow or sell securities.
Bill Wins Approval.
The Chancellor estimated that the
,s,urities held here were valued any
where from s1,5OO,OOO,OOO to s4.OOO,OOO,-
90 and expressed the hope that this
would be sufficient "to meet our liza
hllfss and to maintain exchange in
he United States for the period Of the
var"
The bill met with general approval,
although David Marshall Mason doubt
ID whether the scheme would affect
a,hsnge, while Frederick II. Booth
hoped the government would assist
.aders who had to meet liabilities in
America and that "these transactions
vii not lead to New York replacing
London as the financial centre of the
world"
Nr. NcKelns said that the govern
ngi lad decided TO pay for the Sc
tnhas in fye-year 8 per cent TX
hsgl,r bonds He said that the gov
tunfli was willing 70 buy such
Ansfan dollar securities as were
suitable at the middle American price
o. he day, without brokerage or COM
nis0n.
w. NcKenna said that II individual
ioasfs were unable 70 sell their secu-
rites the Treasury would accept their
holdings on deposit for two years.
ne lender would receive the interest
teeruing plus one-half Of / per cent.
The Treasury would retain the right
70 sell securities thus deposited under
certain contingencies, the Chancellor
continued paying the middle New York
ln's Of the day and an additional 2iz
PEI cent on the value thus calculated
In presenting his plan Mr.. McKenna
osgtn with q reference to the increase
u British liabilities in the United
S1.es.
The most inyeterate pessimist would
ioi dispute our capacity 20 meet these
obligations, provided our assets we're
sade liquid and were given time" the
CHANCELLOR continued. eve have i'm
sense resources.
Despite the large amounts which are
'sing earned by shipping and the large
amounts paid in dividends and interest,
n''s sums are insufficient 70 restore
ne balance Of trade, which is now
ss.iat Us. In order 70 meet our liza
'..iiies IN the United States we are
Wagsd 70 20 outside the ordinary
curse Of trade.