U.S. Loan Going; Second May Be Needed

Chronicle (Levin), 21 May 1947, Page 5

U.S. Loan Going; Second May Be Needed

Press Assn.-

(Sbecial Gorrespondent):

By fel.eytaph

Copyrighi

lieceived Tuesday, 7 p'.ril. LONDON, iYky 20. Financial circles are expressmg ebxt cbrn at the fapidity whefewith Britaiii is using up her Ameficari ioan. Alrehdy .t is stated £437,5(10,1100 has be'eh di'avyii lIi nine months vvhereof heafiy £300,.>0b,OUO has been used since Jauuafy i. This is nearly haif, the loan b6i*g fo'r £ 1)37,500,000. At tliis rate, one tinanciai vvriter apines, the ' exhaustion of Bri tkin's eredit would fall early in 1948 wliich is t'ar earlier than anyone couJU nave anticipated and long before Bi'i tain is able in any way to stand 011 iiei n t'eet. The Fiuancial Times has_ comitiented that Ihere is undoubtetl uneasiness ovei Jie {losition and says that in less thau two months Britain speiit a gteaiei proportion than she rbqhired in tiiO .v'hole of the Secbhd hkif Of 1946. It Mds tlmt the discrbpshcy betweeh the rate of Britain 's boifo'vvings in United .jtates and Gahada and Mr. Daltun t .ostiniate, is of the brder of elose 011 _UU per cerit. it Cbrtainly warrants a ti iiiicial explanatibn. Cbmnie'nt 011 the genbral position ih ueing accompanied by suggestions thai .\I r. Dalton is proceeding with negotia ilons for a second Aineficaii loan and Jiere is some siieculation whether the present loan will be written off as a gift. hrorn America it is reported that Mi'. uewis Douglas, Ameriean Ambassador .0 Britain, is obtaiuing estimates of the linaneial and political terms on wh;ch Britain might seek a new loan. ll is idded that formal negotiations have not started despite Londbn reports that not even the formal preliminaries or the revision of the present loan tertns have been taken. Lt is point'ed out that Britain today can buy less than 60 pe'r cent of goods her dollars could have bouglit when the present lohn was negotiated, due to the risd in Amefican prices.