South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-10-13
ALLIED LOAN IS
PASSED BY HOUSE
Commons Approves Measure to
Secure Half BiIIiOn-Amer-
leans Are Praised.

LONDON. oct. 15.-The house OF
commons Tuesday evening finally
passed the bill introduced by Chan
cellor of the Exchequer Reginald Nc
Kenna to confirm the action of the
government in floating a loan of
$500. 600. 600 in the United states. The
bill now goes TO the house of lords,
after which il is expected TO receive
the kings assent. The French cham
Der of deputies has ratified the loan
France being a joint participator with
Great Britain. The discussion in the
house brought out the interesting
statement that the loan was not as
barge the allies wished 10 raise.
we tried TO raise $1,OOO,OOO,UOO,
said Mr.. McKenna: then SSOO.OOO,-
900; then $3.50, GOO, 900, but We're un-
successful half a billion dollars was
all we could get"
The statement of Sir Edward Grey,
the foreign secretary, on the Balkan
situation was not made Tuesday. 1t
will be made on Thursday.
To Maintain Exchange.
Introducing his bill for the ratifica-
ton Of the loan, Chancellor Mckenna
said:
The purpose of the loan is to
MAINTAIN our GACndIkt Will TIC
United States. our increase an inn
ports from America for the first six
months of 1915 amounted TO $500
600 pounds ($292, 500. 000). while at
the same time our reduction in eX-
ports was 10000 600 $50. 600, 00O),
thus making the adverse balance 20,
0O0, zoe pounds $3.50, 00O,0O0)."
MIR. McKenna thought some relief
TO the situation would be afforded by
the selling of American securities hello
in Great Britain.
THE loans terms are f3ir." declared
the chancellor. land thu government
commends them to parliament Cap
ital in America commands a higher
rate Of interest than in Great Britain.
Deducting a crude interest, however,
the British 4 ID per cent loan now
stands at SO Is, and as the American
underwriters took this loan at 90.
Great Britain is only paying half OF
one percent more than the market
rate.
Must be Sanctioned.
THE loan has been fully under
written, but the public in the United
States cannot subscribe until parlia-
ment sanctions the issue. Therefore
1 ask the bill be passed in all stages
1t is of the greatest Importance that
there be no delay in the issue to The
American public The money is to be
borrowed under powers which the
treasury already possesses. Great
}ritain and France are to share the
loan equally, 100000 pounds (S25O,-
| 600, 0O0) going to EACH
MIR. McKenna referred TO the sue
cess of the loan in the face of deter
mined opposition by persons unfavor-
able to the allies.
Some criticism of the rate OF in
| terest brought a statement from John
| Dillon in support of the terms
1T is unfortunate" he said, that
! the United States has been represented
| as eXacting unreasonable sums. Ger
man agents eXerted enormous press
ure to accomplish the collapse of the
! loan. Its success is proof of the popu-
| lar sentiment in the United States
towards the allies"
Defends Americans
Sir Henry. Dalziel thought Mr.. Dill
| Ions speech was unWarranted
I'VE are all one in our sentiments
| towards the American people" he
said land the criticisms made are
/ honest and based on financial con-
sideration alone"
| Chancellor McKanna announced
that plans were formulating to meet
the great liabilities due in February
| It would be premature TO announce
them, however. He warned the house
| against a hasty acceptance of the idea
/ of taking by cOmpulsiOn.
Premier Asquith announced he was
as yet unable to give the decision Of
the government on the subject of re-
cruiting, but this would not be long
| delayed