New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-17
Credit Cuts a Figure.

Credit Cuts a Figure.
Tie argument has been that Great
Britain and France would turn to
Canada and the Argentine for wheat
But. banker pointed out yesterday
this argument has more OF senti-
mental thau a practical value. The
allies wan, % buy their foodstufFs here
because here they can buy them on
credit To Jay cash for them they
would have 90 pay gold, or they would
have % collect from private owners IN
Great Rr.t.f7 and France American Sc
cGrItles that could be sold here 10 pro-
vide cash They are reluctant to part
with much more Cold-Such gold as
they can spare must be employed IN
She purchase Of munitions. To collect
American securities from their private
owners n sufficient quantities 10 turn
exchange ia their favor would be a
task o. almost insuperable difficulty.
So purchases on credit are all that re-
main.
Argentina. ran this bankers aIgu-
ment. is in no position 10 lend the Al
Canada Both of these countries have
had 10 resort 90 the United States for
loans since the war began, either Tor
themselves as nations or Tor thelr
provinces and cities. To sell on credit
Is thc same as TO lend money. Canada
and Argentina could not supply the
Allies with a measurable fraction of
their needs in grain before their ability
20 sell on credit would be gone. Their
exchange would run even further
against the Allies than American ex-
change has run.
Agree That Loan Must Be Made.
Il is generally agreed that a sub
tiantial loan TO the Allies must be
made. because without II the trade IN
foodstuHs and other commodities that
normally bulk large in the business be-
tween Europe and the United States
would suffer d large shrinkage. II no
other way remained 20 the Allies they
would "starve.' as one Of the commits
sioners is reported 20 have sald-mean-
ing that they would reduce their nor
ma food allowance or would invent
substitutes for wheat -four, etc, as
Germany has done. So, while the
threat 20 buy foodstuffs elsewhere IS
c.assed as bluff" il is realized that
help must be given 70 the Allies If our
agricultural products and our manu-
'aciures are TO continue 10 be sold at
hgh prices
IN The financial district the assump-
ton is shat the proposal TO provide
half billion dollars in credit here, IN
stead of the billion asked, is subject
70 alteration; that il is in the nature
Of "fceler." and that in the end the
sum granted will be somewhere be
tween the larger and the smaller hg-
ures say, 100000, 600 or $66OOOO,0OO.
lnsistence was strong yesterday that
the credit should cover only com
mcrcill transactions. as distinguished
rom the purchases Of war supplies;
While it was thought that II would
not be practicable 20 separate purchases
o. ioodstufs for the armies and naVies
from those made for the civil popula-
ton, there could be sharp line drawn
against expenditures out Of the loan
proceeds for such commodities as am
manuon, rifles, artillery and so on.
Want Per Cent for Investors.
There was equal insistence that the
notes 90 be issued should bear interest
az per cent and be offered 70 the
bankers. who will distribute them at q
prce under par. The income yield TO
me bankers, IL was said. must be bz
per cent, 80 that 8 per cent clear could
Be offered 20 the ultimate investors. IL
was assumed that the notes would run
ior hve years. The British proposal
Was understood 20 be for a term twice
az long
Both sides 20 the negotiations have
oeen busy collecting data about the
export trade and exchange and the
probable reception Of the forthcoming
loan IN various sections Of the coun-
Wy, and yesterday there continued 20
oe numerous informal conferences. de-
sPlte the heat. Yesterday afternoon
Were Was conference uptown Of lead
Mg members Of the American group, at
nhlch there were understood 10 be
,hfee members Of the Morgan firm
. q. Morgan, II. =. Dawson and Dwight