BANK OF ENGLAND AND TRADERS

Dominion, Volume 7, Issue 2248, 7 September 1914, Page 6

BANK OF ENGLAND AND TRADERS

A MEASURE OF RELIEF

FOR ACCEPTORS OF BILLS OF EXCHANGE

(Rec. September 6, 5.5 p.m.) • London, September 5. After consulting leading bankers and traders, Mr. Lloyd George (Chancellor of the Exchequer) in order to facilitate the removal of difficulties arising from rl'ho breakdown of foreign exchanges: has secured an arrangement whereby the Bank of England, where required, will provide acceptors with funds to pay all approved pre-moratorium bills at maturity. This will release the drawers and endorsers of such bills from their liabilities as parties to bills, but their liability -under any agreeinont ■with tho acceptors for payment of cover is retained. Acceptors must collect from their clients all funds duo to them as soon as possible, and apply those funds to the repayment of the aforesaid advances, whereon interest will bo charged at tho rate of 2 per centum above the ruling bank rate. Tho Bank of England undertakes not to claim repayment of the amounts not recovered by acceptors from clients for a period of one year, after the closeof tlio war. Until tho end of this period the Bank of England claims to rank after claims in connection with post-moratorium transactions. In order to facilitate fresh business the movement in produce and merchandise from and to all parts of the world tlio joint stock banks have arranged, witli the co-operation, if necessary, of tho Bank of England and the Government, to advance to clients the amounts necessary to pay acceptances on matur- , if.s where funds have not been provided

in tho due time by acceptors' clients, but the. acceptor nvust satisfy the banks regarding tlio nature of the transaction and the reason why money is not forthcoming from his client. The Government is negotiating with a view to assisting the restoration of oxchango between the United States and Britain.