The Barre daily times. (Barre, Vt.) 1897-1959, 1915-09-21
FORM LOAN
SYNDICATE
To Be the Greatest in the
History Of the West
ern World
NATIONWIDE
MEMBERSHIP
The Security to Be Five Per
Cent. Government
Bonds

New York, Sept. 2l.--The largest I'M
derwriting syndicate the western world
has ever known was in process OF forma-
tion yesterday to handle the proposed
"billion dollar" credit loan to Great
Britain and France, which has now
shrunk, it was reported, to sum yet
to be determined, between S600,00O,000
and $so0,000,000. This mammoth syndi-
cate, according to tentative arrange
ments said to have been agreed upon,
will be nation wide in its character and
will comprise national and state banks
and trust companies from the Atlantic
to the Pacific A number of so-called
pro-German financiers, it was reported,
will Join the syndicate If it be finally
agreed that the proceeds of the big loan
shall be available only for commodity
exports and not for munitions of war.
The bonds of the British and French
governments issued to secure the issue
will be taken at par. The bonds will
pay per cent interest and will be a
first lien upon the entire British empire
and France and her colonies. Even the
staggering sums raised by bond issues
at home, with which the war has been
carried on, win come second to the loan
to be hoated here when the time comes
TO pay the principal.
For the first time in history, the Eng
lish pound sterling has yielded first place
in international finance to the American
dollar in this respect; the whole big is
.g l. L.. L. -, A
dollars, principal and interest. For gen
erations past, Great Britain's bonds have
been payable only in sterling, The
bonds win run five years or ten, it is
not yet known which.
In agreeing to have the issue handled
by an underwriting syndicate, the Anglo
French financial commission, whose err
rand here is to establish the loan, APP
parently has deferred to the views of
American fnanciers, the original inten
tion Of the commission having been re-
ported TO provide for general subscrip-
ton TO the bonds without the under
writer as a middleman. As soon as the
definite terms of the proposed loan shall
have been agreed upon in their entirety,
banks and trust companies throughout
tue Cuunlias ~ 70 huASi obVVAs Will bc III
vited by general announcement to be-
come parties to the syndicate of under
writer's.
These banks will be given a small
profit on the transaction, somewhere in
the neighborhood OF one half of one per
cent, il is believed. Upon this point
there had been marked divergence of
views, the commissions previous report
ed attitude having been that bankers
and investors should pay the same price
for the bonds. great many American
bankers. IL is said, demurred to this on
the ground that they would be put 20
considerable expense in handling the |
bonds and that reasonable return for |
their trouble was no more than equit-
able.
The next big question 10 be settled, il |
was said. was whether munitions of war 1
should be paid for out OF the proceeds of
the loan. The commission is said to be-
lieve that the loan should cover muni
tons; a great many American bankers l
think il should not. A factor that en-
tiers vitality into the consideration of
the matter, IL is reported, is the atti-
ude Of certain banks which would OPP
pose the loan should il cover munitions
shipments, but whose opposition would
be converted 20 support in case the big
fund provides payment only for com
other than munitions Upon
this and other minor details the COM
mission and American fnanciers con.
tinued their conferences yesterday