The Barre daily times. (Barre, Vt.) 1897-1959, 1915-06-22
A BLANK CHECK FOR
$4,000, 100000 GIVEN
Chancellor of the Exchequer McKenna
To Be Provided With Vast Amount
To Carry on the War for
Great Britain.

| London, June 22.--The House of Com.
mons adjourned last night after unani'
mously giving first reading to the bill
providing the new chancellor of the ex'
chequer, Reginald McKenna, with bank
check which may amount at maximum
to fl,000,000,000 pounds (S5000,o00,-
000).
The vote of credit for f250,000,000
Isl, $50, ,000,0O0l passed last week by the
House, simply authorized the govern
ment, to spend that much for war pur-
poses, but did not provide for the max
imum to which this 'sum should be
raised. The enactment was in the form
of a resolution which empowers the gov
crnment to raise not only the f250,000,-
900 deemed necessary to pay the cost of
the war, at the rate of f3000.000 ster-
ling daily for limited period, but as
much more as may be leeded.
The chancellor of the exchequer made
a long explanation of the proposed loan
and, in closing, said that on the techni-
cal question as to the limit of the loan,
necessity for not fixing any definite sum,
and he added that the only figures he
could put in the bill was a maximum
which would cover all requirements of
the new loan, including provisions en-
ablng the subscribers to previous war
loans and the holders of consols to par
ticipate. This maximum would not fall
far short of fl,o00,0oO,O0o sterling.
Mr.. Mckenna said that unless the
loan were issued the only method where
by the country could continue to pay its
way would be by the further indefinite
issue OF treasury bills. He saw obiec-
cipal one was that such issues are bank
ers' money, not public money.
Il want the public to lend the money
in way which will not oblige lis to
repay during the war" he continued.
In reference to the rate of interest,
Mr.. McKenna said the government had
to- face the situation of to-day, that |
there were two great facts which could |
not be ignored. The old war loans at |
present netted the investor 4A per cent. |
and this loan now stands at discount. |
''We require many hundreds of mil
ions," said the chancellor. "If on the |
I'D war loan the investor can get rath-
II better than than Az, we cannot ex-
,ect the new issue to be floated at less
han Az. The government is fully |
ware of all the objections not only of |
Meeting the interest, but of the effect
N other loans. The effect of the issue
# Az per cent. loan will be to de-
,reciate other securities and foremost
n the governments mind is the old loan.
his country never will leave it's credi-
crs in the lurch and the government,
therefore,, proposes to give the new
ights to holders of the old war loans.
"The case of the holder OF consols is
cry strong. Ninety millions of consols
ras issued for the South American war,
nd depreciation to an unstable point
. not to the advantage of the commu-
ity. | propose, therefore, to give the
onsolholders a similar opportunity Of
their position, as is given TO
olders of the old war loan.
"To the holder of the old war loan, we
ay:
"If you bring fl00 and invest in the
ew war loan we will take over your
ID loan at par and offer you az instead
per cent.