Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-12-14
ENGLAND TO. BUY /
! U. S. SECURITIES
~ - 80 !.
House of Commons Passes
to Second Reading Bill /
For Purchase !;
M'KENNA'S STATEMENT
M'KENNA'S STATEMENT
Alleges Scheme is Entirely Voluntary
and With No Intention of Harrass:
!
ing Market. /:

Londcn, Dec. IA. - After an eS-
planaticu by the Chancel(o: Of the En-
chequer, Reginald MCKenna, and a
short dehate, the House of Commons
passed yesterday evening second
reading of the bill empowering the
government to mobilize American and
Canadian securities, oy purchase or
by borrowing them, to be used prlm-
arily as collateral for loans, OF, III
case of necessity, to be sold to meet
Great gritain's liabilities in the
United States.
The scheme is an entirely volun-
tary one, and the chancellor made 1t
clear that the government had no IN
tention of swamping the American
market, with securities which would
5e unfair TO holders here, as they
were to be paid for at the market
price.
Mr., McKenna explained that the
usual trade balance in favor Of Great
Rr;tain had been exhausted by the
huge demands made upon America
for goods for England and her allies,
and the amounts paid in interest on
foreign securities held here, or earn
id by British holders were not sutfl-
,ient to set this right. Consequently,
IN order to meet liabilities in the
United States.i they were obliged to
20 outside the ordinary course Of
:rade, and had to borrow or sell Sc
curities.
He estimated that the securities
held here were valued anywhere from
81 500 ,eO0, 900 to 4,eO0,Oo0,eeo and
expressed the hope this would be
sufficient "to meet our liabilities, and
to maintain exchange in the United
States for the period of the war"
The bill met with general approx
al, although David Marshall Mason,
doubted whether the scheme would
affect exchange, while Frederick H.
Booth hoped the government would
assist traders who had to meet liza
bilities in America, and that these
transactions will not lead to New
York replacing London as the fnan,
cial. center of the world
Replying to the question of sil
George Younger as to whether the
government intended to confine itself
to borrowing in America upon: the. Sc.
curities it would acquire, Edwin S,
| Montagu, Financial Secretary to the
Treasury, speaking for Chanceatr
McKenna, said that the government
certainly did not propose to conf'nt
itself to either borrowing or selling
Regard must be had to the position
of affairs in America, and the gov
! ernment proposed to do in every cas-
what seemed most advantageous fo
she object in view.
"The offer to giHesBritish credit il
exchange for American securities a
current market prices said the chan
!, cellor, "can only be justified by tn
I absolute necessity for mobilizing ou
American securities in order to max
them of the utmost value to the ma
| lion as a whole.
"Whle American securities toda
/ have a good price, it is true that Brit
+ ;sh securities-owing not to any, fail
)! IRE of credit. but to our having sue
! large demands to meet-are compare
.ively low
4 Mr. McKenna said he desired t
make it absolutely clear that ther
was no intention to swamp the An
, erican market with vast masses {
securities. The government intende
= 20 hold the securities in order to de;
in them, he added, and primarily the
!, would be used as collateral securitie
:, New York, Dec. 1.-THE decisio
i Of the British government to mai
, outright purchases of American s.
.urities caused no surprise here, tt
plan having been reached as one
! several which British Treasury of
), cials were known to have ander CO.
: sideratien. -
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