Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-09-21
MUNITIONS OF WAR
NOT TO BLOCK LOAN
Nor Will Amount to Be Secured
Be Locked Up at Once in New
York Treasure Chest.
SITUATION is ENCOURAGING
Big Thing Now Is to Stabilize
Exchanges; Other Matters Will
Take Care Of Themselves.

NEW YORK September o0.-Muni-
tons Of war will not he allowed TO
block the proposed biz credit to Great
Britain and France: nor will the 5000
100000 or $500, 600. 600 TO be secured be
locked up at once in New York
treasure chest. according to con-
scnsus OF opinion to-day of those In
close touch with negotiations for rails
ing the money.
1T would be absurd" said a banker
who has been In almost daily confer
ence with the commission, ito assume
that the whole problem of s,abilizinc
exchange. and thus providing for con
t!nuancc of all American exports. will
he halted over discussion as to
whether 4 credit loan should be made
available for Inunition payments. Tho
big thing is to stabilize the exchange:
then the matter of paying for muni-
tions automatically takes care of IT.
self"
Exports OF munitions, it was esti-
mated. constitute considerably less
than % per cent of tho total value
OF American shipments TO Great Britain
and France. Leave them out of cal
culations. If provision be made for the
shipment of soil products and the chief
manufactured articles, exchange will.
in the opinion of bankers. become stab
ilized. 1t would not then be difficult
10 find method OF paying for muni-
tons. il IL were absolutely necessary
| TO adopt different method. it is be-
lievcd. Gold or American securities or
bSth or even some other method of
payments, could be arranged.
COMMISSION IN ACCORD
WITH AMERICAN VIEW
ON this point the Anglo French COM
mission was said tonight to he sub
stantially in accord with the views of
their American associates.
1t was reported tonight that the
tentative proposals now up for adop-
,ion provide for installment subscrip-
tions TO the loan on the part of the
guarantors. such installments to be
paid as necessity arises for the use of
! funds. In some quarters. il was as
| sumed that the sum each bank should
pledge would be payable in four equal
installments, subject to call, and that
bonds would be issued as each install
ncnt was paid. In this manner the
commission would avoid the payment
OF interest on the entire loan long be-
fore all the funds were needed
Another suggestion. said TO have
been embodied in the proposals, was
that the money each bank would guar
antce toward the loan should remain
in the bank guaranteeing il until oc-
casion should arise for It's use The
idea OF tying up the full amount of
the loan at once seemed TO be unat-
iractive 20 both parties to the negotia-
tions.
Many American bankers were of the
opinion that ;he one-half OF ! per cent
allowed them for their services would
be on that basis for each year of the
loan. Thus, if the loan should run uye
years, IL was thought, the banks would
obtain the bonds at Q, IL. or l-2 per
cent Give times one-haif OF / per cent?
below par.
PRIVILEGE OF CONVERTING
SHORT INTO LONG-TERM BOND
Another proposed feature, il was re-
ported. was that the short-term bonds
should include the privilege of con-
version to long-term British and
French government bonds, paying l-2
per cent interest at the end of the
short-term period.
BY that time, it was thought. the war
"ould nave passed into history, and
the long-term bonds. being first
mortgage on Great Britain and France
would be regarded as "A prime invest
ment. and would bring more than par.
In the absence of official announce
ment, the situation was said To be en-
couraGing to-day. In this connection,
II was reported, but without contirma-
tion. that member OF one OF the chief
New York banks of the so-callcd pro-
German group had made ovcrtures to
the commission looking toward placing
its name on the subscription rolls.