Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1915-09-12
ALLIES SCHEME TO
BORROW A BILLION
Comes to New York for Conference
With Morgan and Other
Money Kings.
MAY ACT FOR ITALY ALSO


NEW YORK, Sept. 1.-THE
Anglo French commission, seeking a
way to meet the huge bills OF Great
Britain and France for American
and other supplies, reached
New York today and was welcomed
by ]. p. Morgan and met approx
mately 100 bankers. insurance heads
and leaders in other lines of finance
late this afternoon at a reception in
Mr.. Morgan's library. Tonight the
commissioners we're dinner guests of
a party OF New York financiers.
Actual negotiations as to the credit
they hope to establish here we're not
begun and will not be for several
days. During this period the COM
mission expects to meet many other
bankers and exporters and to become
familiar with the situation. With
these preliminaries disposed Of the
commission will start on the actual
details Of the proposed loan.
Recites Purpose.
For publication, the commission con-
fined its comments 70 a statement issued
upon its arrival here on the steamship
Lapland. This statement detailed the
personnel OF the body and recited its pur-
pose. 1t was assumed TO be significant
that in this statement reference was made
20 the commission as ''the Joint Anglo
French commission" This was taken as
an indication that the credit which Il
hopes to establish here would be Of a
joint nature as previously reported.
Although the commission comes as the
representatives of the British and French
governments and importers of both ma
tons 1t seemed likely tonight that II
might. before its departure. be called upon
to adjust the whole foreign exchange
situation for ali the entente powers.
To the previous report that the delegation
probably would act for Russia. there was
added tonight the intimation on good au-
thority that Italy might within q few
days find It expedent to requesl the COM
mission to act for its government as we'll
italian Money Deprecated,
Italian money Is deprecated in thiI
market to a degree unequalled by any
other. At present time lires are wortf
approximately only three-quarteru OF
their face value. Largely because of this
Italian exporters no longer. in many cases
| accept their own money in payment fol
goods shipped here, but insist upon beinl
paid In dollars or sterling.
| In the case of Italy the depreciation o.
money values here has resulted in q
situation which financiers have feared
] atert.N -
France, Great Britain and Russia II tn,
| exchange rates on their money droI
much lower than the lowest levels alread.
touched. Chiefly because of the de
probation Italy some time ago cancelled
orders for millions of bushels OF American
wheat and sent its buyers to Argentin,
for the grain which would have beel
purchased here.
Great Britain and France, it was sal,
tonight. have seriously ccstemplated tn
possibility OF having to go to South Amer
lea for grain and meats to an extern
much greater than at present and o
turning to Egypt for their cotton. NUM-
tons OF war they must buy in the United
States because there II no other market
but these, 1t is said. form only q mino
fraction Of the total exports and can b
paid for in gold for lonR time to come
Means n Reduction.
From an authoritative source Il
learned tonight that not only had Grea
Britain and France contemplated q heav.
reduction In purchases herein ever,
line except necessities which they canno
buy elsewhere-but that II had been de
cided that such reduction would be tn
only alternative left them should tn
RvraNG lah A..
United States,
Five hundred million dollars is tn
smallest sum which the commission hope
to borrow. II would much rather hav
a round billion. In view, however, 0
the many difficulties which lie in tn
way OF floating a credit loan. of sue
proportions, In America, It was though
that the commissions task would be al
most of herculean proportions in borrow
ing the smaller sum. The entire proceed
of course would be used In paying 70
American supplies.
i Chief of the obstacles which the com
mission faces Is the nature of the col
lateral 1t Is regarded as almost i'm
perative that American securities DO OF
fered as collateral II the loan Is TO h
financed largely by the national banlSi
~ ~ "NNAA hNfp W 10 - va NAAo PAOpoA
tions indicated. So far II was said IN
holders Of American securities abroa
have evinced a strong tendency 20 elm
to their holdings as the best investmen
in the world today.
Nothing approaching half a billion DO
lars OF American securities = at the CON
mand Of the British and French govern
ments, It is said, although citizens {
those countries have eight or ten time
that amount of such securities in the
vaults. How to get them out and intc n
governments hands has been tho chit
financial problem OF both Bngland an
France recently. Notwithstanding Il
handsome premiums to be obtained
selling them at present while the e.
change rates are abnormAlly depressed.
Do'I~r should Dominate.
WASHINGTON. Sept. 1.-THE time III
come in the opinion OF the federal r
serve board, when the American dolls
should take a dominating place IN Il
financial markets OF the world and whe
American or dollar exchange should b
come the medium through which the mi
lions OF exports and imports OF the I'nita
States are paid. To open the field Il
American exchange the board today {
sued revised regulations governing Il
rediscount OF bankers acceptnncGs