New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-11-27
S50,O00,000 LOAN
PLAN COMPLETED
Committee Ready to Make
AlIOtments i'm British
Credit Extension.
EIGHT LONDON BANKS
DEPOSIT SECURITY
Representatives of Russian Gov
eminent Making Strong Efforts
to Obtain Money Here.

The committee Of New York and Chi
cago bankers appointed to work out
with the London joint stock banks a
plan for the establishment Of a $780,
100000 British credit in this country,
supplemental to the $500, 100000 Anglo
French loan, completed its negotiations
yesterday. The only thing that re-
mains to be done to make the credit
available for immediate use is the dis
tribution Of the allotments to the
banking institutions extending the
credit.
As previously stated, the loan will
run for six months. and will not be
renewable at the expiration of that
period. 1t will bear interest at the
rate of Az per cent and has been
secured by the deposit with the Bank
Of England Of II 900, 900 pounds sterling
British government bonds.
The loan is made by a number of
institutions in this and other Ameri-
can cities TO eight bondon banks who
have made the deposit of the British
government bonds in the Bank Of Eng
land. The London banks making the
obligation are Lloyds Bank, London
City and Midland, Union of London,
Smiths Bank. London County and
Westminster, PARIS Bank Barclay &
Co. Ltd, National Provincial Bank of
England and the London Joint Stock
Bank. The London committee Of bank
ers consist of Sir Felix Schuster, Sir
Edward Holden and Sir Walter Cum
life. governor of the Bank OF Eng
land.
Frank A. Vanderlip is chairman Of
the New York committee which has
been handling the loan. The other
members are James w. Alexander.
president of the National Bank of
Commerce; Seward Prosser, president
of the Bankers Trust Company; X. Y.
Hebden. of the Bank of Montreal;
Fred. |. Kent, vice-president Of the
Bankers Trust Company; John +. Gar
din, vice-president of the National
City Bank; Albert H. Wiggin. presi-
dent of the Chase National Bank; Max
May. vice-president of the Guaranty
Trust Company. and James b. Forgan,
of Chicago.
The arrangements provide that the
credit will be drawn in dollars. and as
the eight banks in England desire TO
make payments for their clients in this
country. they will call upon the lend
ing banks for amounts Of the credit
until it has all been used. After the
meeting yesterday at which the loan
was finally approved it was explained
that the subcommittee which was APP
pointed ny Mr.. Nanderlip TO handle the
details will take charge of the for
eign exchange transactions in con-
ncctiQu with the credit.
Representatives Of the Russian gov
eminent are making strong represen-
tations to American bankers for q
loan to their country, which, if present
plans materia!ize, viii be in the form
Of ninoty-day acceptances, renewable
up TO eighteen months. Sixty million
dollars is one Of the amounts being
discussed, but it was stated yesterday
that the negotiations are Still in an
indefinite stage. Russia, however, will
have TO pay high for any credit which
IL may get here, probably per cent,
including cost Of renewals.
Gold " the amount Of S2,500,000 In
British sovereigns was deposited at the
Assay Office yesterday by the Guaran-
ty Trust Company. In addition the
American Exchange National Bank
made a smaller deposit, amounting to
$4,000.