Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-09-21
AGREEMENT NEAR
ON GIGANTIC LOAN
Observation-Disclosures Me-
gotiations Are Rapidly
~ Nearing Conclusion.
AMOUNT NOT DECIDED;
OTHER MATTERS PENDING
Trouble Arising Over Payment for
Munitions Has Been Subordi.
mated, It Is Declared.

NEW YORK, September 21-Negotia-
tons for the fiotation of a credit loan
to Great Britain and France of $780,
100000 to $S00,0OO,00O are rapidly near
ing conclusion, it was reported today.
Announcement that definite agree
ment had been reached was expected
by the American financiers within
few days, possibly by the close of the
week
There are several minor matters yet
| TO be decided upon. One of the chief
! or these was said to be the exact
| amount of the loan. No decision, it
| was reported, had been reached as yet
| upon this point. Several matters still
| undisposed of will enter into the de-
cision as to the amount, and this may
not be agreed upon till the last min
ute.
Conversion Privilege Taken Up.
| The Anglo-French financial commits
sion continued today it's negotiations
with American bankers One of the
| chief subjects said to be under discus
sion was the inclusion of the CONVEX
sion privilege in the five or ten year
bonds to be issued by Great Britain
and France for the loan. Plans were
said to be in the making to grant the
holders of the short-term bonds the
privilege of converting them into Brit
| ish and French joint " per cent bonds
| of longer term at the maturity of
the short-term bonds.
| The life of the long-term bonds, it
was said, was yet to be agreed upon.
1t is understood positively. however,
nl fhEyy g.
as had been suggested. 1t was thought
that twenty years. possibly twenty-five,
would be the period of the long-term
bonds.
Bankers Meet Commission.
Members of the commission were
guests today at a luncheon given by
A. Barton Hepburn. chairman of the
Chase National Bank, at the Bankers
Club. Such members of the Bankers
Club as had not yet met the members
| of the commission, it was said, would
| thus be afforded an opportunity of
doing SO.
A report that there had been a hitch
: in the negotiations was authoritatively
denied by bankers in touch with the
negotiations.
One of the interesting features in con-
nection with the negotiations. it de-
Veloped today, was that Boston fnan-
ciers had been steadfastly requesting
that the interest rate on the short-term
| 1t was said, however, that not more
than per cent would be paid to the
| investor.
Obstacles Removed.
Negotiations moved smoothly today, it
was said, with virtual elimna ton of mat
ter of providing a method OF paying for
|
mination of both sides not to tie up
/ the whole sum at one time in New
York
| the question of providing way for
paying for munitions of war has not
| simply postponed decision on this
point. in the opinion of the Anglo
French commission as reflected by. it's
| callers. but will result in it's gradual
| disappearance. These bankers have
assumed that the big credit would I'M
doubtedly not be intended to cover
| every dollars worth of exports. but
| that Great Britain and France would
continue to remit gold to America and
also would sell American securities in
this market
Would Sta bilize Exchange.
These methods. it was thought. could
amply provide way of taking the mu-
nitions matter out of negotiations. The
first big problem the commission and
it's American associates viewed 1t was
to stabilize exchange. This could be
done by establishing a credit covering
foodstuffs and cotton alone, hardly
reckoning manufactured articles or
munitions. With exchange stabilized
| it was thought there would be little
difficulty in paying for munitions.
NOT WORRIED BY BIG LOAN.