The Bridgeport evening farmer., 1915-09-17
ALLIES CREDIT MAY BE GUT 70 A HALF-BILLI0N Likely To Be Granted If It Is To Be Used Only .
 Comn1erciaIly BANKERS WON OVER BY CONCESSIONS MADE Russia May Be Barred From Participation in Great
 Loan.

New York, Sept. 17.-More progress toward an agreement on the proposed loan to the allies was made yester- day than on any other day since the I arrival of the Anglo-F'rench financial i commission. Events moved so smooth 1y toward a settlement of someNok the difficult questions which the negotia- tors had had to face that rurnor in the financial district late in the day had it that the terms of the loan had been agreed to. This was denied ad- thoritative1y, a1tl1oug gh the fact was emphasized by more than one of the bankers participating in the confer ences with the British and French financial delegates that satisfactory progress was being made.
 The days developments included a statement by one of the bankers talk ing a, leading part in the negotiations that the suggestion that the proposed credit, be used exclusively for ordfn- ary commercial purposes, leaving the purchase of munitions of war to be provided for in some other manner, probably by the shipment of gold and Securities, had been definitely accept ed.
 It was established,f moreover, that the loan as proposed is to be for Great. Britain and France, Russia not being included as a participant in the credit now under negotiation. It was
 
 would not be used by Russia would have an important bearing on the sup port which the loan would get in some financial quarters.
 a. Gaining More Banking Support
 The response. which is coming from interior bankers consi derably increas- ed the optimism Of New York bankers yesterday regarding the success of the, loan. Besides this, Wall Street heard tnatn ews would probably be had to- day indicative of the gaining of sup port for the proposed credit in very important banking quarters in which. so far no active part has been taken in the preparation Of the loan This. expectation also had great deal to do with the feeling which gained ground during the day that the success of the loan was assured.
 The details Of the loan are still open, but. unless the negotiations should take d new and unexpected course, 1t is most probable that the
 amount will be s5oo, %, GOO 1nstead of ! $1 ,000, ,O00, 900. This $500, ,000 .000 is sue is likely to take the forrne of i've t year bonds bearing per cent inter- Pest to be offered at ST. At that price they would yield about 5 1zk per cent Tn addition, in all prohability the bonds will include other conditions which will make them attractive to 1 investors. One probability is that. 1 they will be made convertible at the loption of the holder into al longer 1 time obligation of the British and French Governments, say 15-year bonds bearing h per cent interest. tSuch an option would give the holder the right to cash at, the maturity of I the loan, or, in lieu of cash, 15-year I bond, which if conditions were fa- j vorable. might coTnnnands a premium. But all discussion of the terms of l the loan must still be regarded as ten- Itative The terms havel not yet been I closed, nor will they be, according I to bankers in a, position to know the I facts, until an opportunity has been Il had to obtain the views of other. l bankers than those who have already
 participated in the conferences. Opposition Is Weakening. l ,Inasmuch as the proposed credit,
 as Wall Street now understands. is to l be used exclusively for purely com 1 merciaI purposes as distinguished tteronl the trade in m unitionsr and. be- Nca,use of the. expectation that the i most prominent of bankers with Ger man sympathies will Participate in l the transaction as one designed to i foster American trade, it is believed I in the financial district that soon very
 little will be left Of the pro-German Opposition to the proposed credit.
 Bankers continue to receive threats kthat deposits will be withdrawn if l they participate in a loan to the AL, 1 lies, but these threats are not nunaer- ous. and in some instances at least
 mand. One instance illustrative of others was cited. Two depositors in l lone institution carrying large balances informed the bank that they would feel compelled to withdraw their ac- counts should the bank decide to participate in loan. The banks Iresponse in each case was a prompt trequest that these depositors with- ldraw their money immediately. If it l is not withdrawn promptly the bank Itself will close the accounts and re-
 turn the money to the threatening de- positors. This course was commended in high banking quarters as the best l possible rebuke to those who would bring this sort of pressure upon the l banks to get them to refrain from 1 participating in a, transaction which is looming to be recognized all over the country as a step necessary to safe Eguard the trade interests of Ameri- leans.
 Conferences on Morgan Yacht. That it would not be wise to carry iout the comHission's sl original inten-
 ton of floating a billion dollar loan
 here is the opinion of influential
 bankers who have brought pressure to bear against making an initial issue
 of such huge amount. The conrr1is- Esion, however, IS still in favor of the larger figure.
 The barrier Of secrecy built. around
 the progress of the discussions was
 raised still higher yesterday, with the
 result that few persons other than
 those invited to meet thee commission
 learned where meetings were being
 held. It was plainly evident to any T one contrasting the financial district
 in the early afternoon that practically
 every influentia1 bankers was inac- cessibIe- When 9hese men returned I to their desks they refused to say l where conferences had taken place