New Britain herald., 1915-09-16
ALLIES WANT LOAN.
 AT FIVE PER CENT
American Bankers Wish Greater
 Yield from Money

NGW 1O1 hs SCpI. IO-hSIIlDeTS or the Anglo-French financial commits sion and American bankers engaged on the proposal of a billion dollar credit loan to Great Britain and France have somewhat different ideas, it became known today, as to some of the terms governing the loan, chief of which, it is reported, is the rate of interest.
 The commission Is said to hold five per cent. as the maximum rate. Many American bankers believe the mammoth issue should yield at least 5 1-2 per cent. to the investor, and there Is talk in some quarters of re- quiring six per cent.
 Sold at Par.
 A five per cent. loan, the commis- i. sion is reported as having said to visiting bankers, should be sold at par or at not more than a shade under. Some financiers here are said to doubt If the American public would sub scribe to a straight five per cent. loan, without collateral, at more than 95, if that.
 The way of the commission in agreeing to a bigger rate of interest than five per cent would be beset with obstacles, in the opinion of some bankers here. These bankers point out that Great Britain's internal loans have borne interest rates at 4 1-2 and per cent. subject to de- duction for the income tax, which in the case of the largest incomes is as much as twenty-seven per cent.
 Terms Are Better.
 Bearing in mind this prime neces- sity that the securities to be offered here for the billion dollar loan must be absolutely free from all British income tax requirements, these bankers point out that the terms which Great Britain and France propose to offer to American investors are infinitely better than the terms offered by these governments to in vestors at home.
 A possibility widely discussed to- day was that payment for munitions of war would be excluded from the operation of the proposed credit loan; that the big credit loan would be used to pay only for exports of foodstuf:s and other prime necessities and that payment for war munitions would be in gold, The report was not com mented on, one way or the other, by the commission or others supposed to be in close touch with it's program.
 Satisfied With Wages.
 Members of tha commission seemed to be well satisfied today with the progress made thus far. Millions in pledges it was reported had already been secured and more pledges were tentatively assured. Negotiations, it was said, had reached the stage where an authoritative statement from the commission would be issued, perhaps tonight.
 It developed today that not only the so-called pro-German group of New York financiers failed to receive invitation to participate in the nego- tiations alth ouSh the hint had been dropped that they would welcome it, but that memb bdks of the group fad become convinced that no such irvi- tation would be forthcoming Billion Not Necessary.
 From these sources today came the expression of an opinion that a bi!- lion dollar loan was unnecessary and that credit of from s300,000,00o to $400,00O,00O would be ample to meet the situation. Payment for muni- tions of war it was thought, should be excluded from the proceeds of this loan, the credit covering only food stuffs, cotton, manufactured goods and other necessities. Under no cir cumstances, it was said, would mem bers of this group participate in n loan which would cover payment of war munitions even if they were in- vited.
 Standard Oil To Participate.
 Standard Oil millionaires. including John D. Rockefeller Jr, 1t was re- ported today, are considering the terms of the proposed billion dollar credit loan to Great Britain and France with a view to participating.