NEW CAPITAL ISSUES

Dominion, Volume 12, Issue 225, 17 June 1919, Page 5

NEW CAPITAL ISSUES

Mr.- Chamberlain, Chancellor of the Exchequer, announced in the Commons recently that a reconstituted committee had been 'appointed to consider the question of capital issues. The terms of reference were to consider and advise upon applications received by the Treasury for license under Defence of the-Realm Regulation for fresh issues of capital with U view to preserving capital ■.during tho reconstruction period for domestic purposes within the United Kingdom, and to ' prevent any avoidable drain upon foreign exchanges by the export of capital, except where it was shown to the satisfaction of the Treasury that special circumstances exist. It would be seen from the Treasury instructions to the committee, Mr. Chamberlain added, that in order that applications might be dealt with expeditiously the committee would sit by panels. In considering tho applications the committee would take into account the extent to which the proceeds of the issue would be expended within the United Kingdom, and the assistanco which the issue might be expected to give to British trade. Preference will be given ceteris paribus to those cases in which the proceeds of the issue wero.to be applied in British dominions overseas. It was proposed that the control should be confined to proposals to raise capital from .the general, investing public, ami should not concern itself with the supply of capital as lictween individuals and firms where no marketable share or security was issued.