FINANCIAL UNREST.

Dominion, Volume 2, Issue 486, 20 April 1909, Page 5

FINANCIAL UNREST.

DROP IN CONSOLS. RUMOURS OF A BIG NAVAL LOAN. TURKISH CRISIS. . , (by TSLBGRAFU —PItESS association—coryiaonT,) . • London, April 18. Consols arc quoted at £84 12s. Gd., a fall of 16s. >3d. sinco, Friday. ■ Tho market is nervous owing to Turkish affairs and to, unconfirmed rumours that the British Government ib about to raiso a twenty-five million naval loan by. means of ten . years' bonds. The Paris and Berlin Bourses are unsettled. PROPOSED NAVAL LOAN. o!NE HUNDRED MILLIONS SUGGESTED. The idea of a big loan for naval purposes is not a new one, and it is almost certain that the Government has-already had before it such a proposal. Tho London-''Daily Telegraph" published as a fact in the autumn that the Government had •uiidei' consideration a proposal ."to raise, a large loan.' in view, ,of the renewed com;petition in naval armaments abroad. Proposals to this end have been put' forward by financiers, of the highest standing,' who, it is.stated,' have undertaken to .find .£100,000,000 _on nominal terms,, so as to meet tho necessities of the fleet in the next few years without disorganising the annuali budgets or, casting, a heavy 'burden, on; the present generation. ; : '■ "There is no idea of a Naval Defence Act on the. lines of that introduced by Lord Gcorgo Hamilton in 1889... This measure was broiight '.forward''.'to overtake arrears in shipbuilding which had accumulated during a .'period of unprecedented activity abroad. ' It specified tho sum which wis .'to be spent :in a limited number pf -years,and, the; manner in' which'' it sliould be used. 4 The requirements of the Navy were known because its deficiencies wore apparent, ami it-was common knowledge that the Admiralty regarded ; the then existing situation ■ with .the greatest concern. Tho relative strength of the fleet had fallen year by year until it barely. exceeded that of one European Power alone, France. , Tho Naval Defenco Act was framed to make good this leeway. . .. . Guarantee, of Two-Power Standard. : "The;proposal now tinder consideration is. n simple one. It. should .be a ' translated into; terms'of . cash of'.the country's, intontion to' maintain the two-Power standard at all costs. Not only in this countrv, but throughout the world, there has been a deeplyseated impression that tho Government'is'not sincerely attached to tho two-Power standard, and that for party ends it may whittle' it down. By setting • aside .£100,000,000 > forV the fleet, the .Government would advertise its-.poHoy in. every newspaper in the world, and in. all deliberative assemblies, .untiPit became world notorious.' ;;; "Such a loan, would not be hypothecated in an advance, as in tho casoof the Naval Defenco Aot. It would form n fund: which would be drawn upon a 4 required by the Government of tha day. There is no idea of fixing tho expenditure year , by., year for a long period in advance. •. Navy estimates would.be introduced in each, year, as usual, making provision for only one-year's shipbuilding/programme. But any outlay above the. normal sum which might be required' would be 'taken from tho loan fund. The whole of the expenditure would como under reviow bv, tho House'of Commons, as at present, but.only the normal expenditure would be met out of revenue, and: tho remainder, would ,be available from the 'loan fund." A Liberal Paper's View. ' ' • ,■ The "Westminstei; Gazette" (Liberal), in the course of;a leading article, stated: "The constdiit ; comparison of i forces, < ftnd tho constant appearance 'of* rivalry which . this process , must involve/ ennnot, make , for friendship, and may: /easily;: sharpen' . I .'. It; seems .to ,\is time to consider, whether, next .'year we should not, wind. ■up .the whole.- affair by one programme, financed, if need be by a loan,; which will save us at least from tho annual reour.reiice - of r:thisihc6htrQvqrsy.-for.-the-subsequent threo ■, years. ; .. TYe JcnoWtho 'obiectionn to a loan— andierim...the iibfeurdifcy, of, laising, debt with one, hand :while wo aro pajing it off with, the other —nor do we forget' the perfectly valid pleas which hnve been: entered "against ''rigjdr'progrnmme's. 'But!political considerations enter into this' matter,' which may. outweigh these, objections. . . . The loau which we are contemplating would : .not necessarily; relieve the - Government' from financing the four years' programme , ouK of; tho revenue of ,the four years; but it .would, wo hope, put an end to 'a mischievous and possibly dangerous' controversy, and make clear to all - par-'.-ties what, if: the:situation-remains on the other side,- will be our course of action during the, period covered."