The Bridgeport evening farmer., 1915-09-16


 New York, Sept. 16=After series of conferences with groups of bankers yesterday the AngIo-F'remch1 Commis- sion, sent to this country to arrange plans to correct the international ex- change situation through ;the medium of a loan of as much as $I,O00, ,000,0R0, held a meeting last night at the Hotel sBiltmoreS which lasted< until nearly midnight It was the first formal gathering of the commission mem. tbers for the purpose of ddgesting the tproposalsf brought forward in the ex- traordinary efforts of the Allies to establish a great loan in the United States.
 J. P spdQrgan sRpp cared at the ho- 5et fsaIen 0ee1 the ana room @ where the& commissions sat The pur-g pose of Mr,A lorgan's s visit was not am 1nounced,s and the statement was made in behalf of the comRlission that such Iprogress as was made was not of a na- iture to be made public, It was under stood. however, that Mr. Morgan brought to the visiting ifinanciers i'm BportantS information concerning the topinion of bankers toward the loan, their suggestions as to ways and. lxneans for inviting subscri ptfons, and ithe temper of the. investing public lin different parts of thetcolntry in re- lation to borrowings byb England and iF'rance.
 It was understood that the infor- matien presented by MT. Morgan had been obtained by himself land his col leagues through painstaking series fof interviews this week conducted personally. and by telegraph with the l Ecountry's leading bankers. Data of kthis scrtA were what the commission had been in need sof, fort had been plain from the time asIoan of at least. f $500. GOO, O00 was first considered that. lco- operation of practicallysaH the lead- ing banking interests off the United xStates would be sneceSsary to make the. gigantic undertaking a success Divided Loan Suggested
 The suggestonss which have been discussed in the conferences with the kcommission or privately among the fbankers who have attended those con- fferences include a proposal that the credit should be- established solely for ordinarys commercial requirements and tfat a s lpns purchased in the < l1l4ted SfA4es by Great Britain and her allies should bez paid for in some other way, if need be by periodical shipments of gold. and securities. This { would have the tvEo-fold effect of en- I tirely separating the purchase of m uzitions from the purchase of ordi-. nary supplies, including grain and cotton, and of supplying us with a further amount of gold sufficient in ! all proba b5lity tp provide the reserve WnlC4z WOa1Q7 nave IOF4O6 11tl0 dS51A11S5L { the deposits made here out of the pro ceeds of the Joan to Great Britain and France
 This suggestion is more or less closely linked with the view which found expression in several quarters of the financial district yesterday that loan for as much as $1,00o, 000,o0o was not necessary If the credit is ern- ployed solely for ordinary commercial requirements, as dfstingufshe from -<. fund Of $5Q0. .ooo ,0o0, it is urged, would be ample to restore the ex- change market to a normal state.
 Tf is believed in the financial dis trict that the coInnafssl on would not object to this manner Of handling the matter, should 1t appear that much wider support could be had for credit confined exclusively to filling purely commercial needs It is known in this connection that Some of its callers have sought to impress upon the commission the view that the proceeds of the loan must, not be used for the, purchase of rn11ni- lions if the widest possible popular support for the loan is desired
 Interest Rate Naf1st Be High
 IL became increasingly evident yes-J terday that the most Influential mem 3oers of the American ban king fraternity. were far apart in their views as to- the reception which should be given, to the tentative plan put up to them by the commission on Monday. In some quarters the belief is entertained that the proposal for a DflIi on-d oIIar Issue of 5 per cent bonds was made as a, feeIer, and that 1t will have to Joe modified to a considerable degree be- 1 fore the credit can be arranged.
 On the matter of interest it is un- derstood by some of the bankers who have met the commission that a rate, higher thaaz'5 per ceaat. will not be considered by the Allies. On the other hand, bankers who head two of the largest bond distributing agen- cies in the country went on record as tain and <FFrance must be prepared to pay more than that. One of these bankeFs said the loan wot11d1 cost the allied government per cent, in c1udiag the syndicate com nnaission The other said the bonds would have to net the investor at least 5 per cent, and that another one-ha1f sof per cen3. would have to be allowed for znarketing them.
 An important visitor from the Middle West, who has spent a. good deal of time with the delegation, said that while the rate Of interest would not be more thaaK5 per eent., a con cession would be made in the selling price, and that the comnissi oners would agree lto an issue of fve-year notes at s7 1-2. making tho yield 5 1-2 per cent per annu1n-
 Loan in TnstainaeHts Suggested.
 Among the new suggestions offer cd yesterday was that tTs= direct credit granted to the Allies be made s25O.- 100000, and that another $259. 9.00o,- 900 be arranged through bankers ac- ceptances, to be taken by a syndi- csLte.-Fnder this plan, another $500,- 900,O0O would be advanced on the same terms when needed.
 It was also suggested that to get around the prohibition in the New York state law which forbids a bank lending more than 10 per cent of it's capital and surplus to one borrower the British bonds with 2. trustee and