The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-15

I
Il Co. had under consideration. TIL,
| project was abandoned.
| Later Mr.. Bryan stated the position
| or the Government with respect TO loan,
| TO belligerent Governments in more de
tail In letter to Chairman Stone OF tn,
Senate Committee on Foreign Relations
In substance he said that the Govern.
ment could not oppose credit leans which
were designed to accommodate the actua
purposes Of these Governments in the
United States. but that the loans OF sums
In gold directly to the Cover nments, I,
be used by them in carrying on the war
would he regarded by the Government
as Inconsistent with the spirit IL not the
letter Of neutrality
The plan Of the New York bankers a.
Indicated to-day is to arrange a loan OF
billion dollars. to be expended in pur.
chases In the United States. II is not
known whether the State Department
would take steps TO discourage the loan
should 1t eventually be disclosed that II
Is not In fact a credit loan. No definite
statement in this regard was obtainable
to-day.
The impression among officials OF the
Treasury Department is that no opposi-
ton to the proposed loan need be antici-
pated from the members of the Federal
Reserve Board Their disposition Is 10
regard the problem presented by the dis
closure of plans for the loan as one
pertaining solely to the general policy ~ {
the Government. to he determined either
by the President or the Secretary of
State.
The Presidents View.
In unofficial quarters close to the
White House IL was conjectured that
President Wilson views the proposed
billion dollar loan to the Allies as within
the limits Of neutrality because the
credit is TO be used to pay obligations
incurred in this country.
1t Is inferred from the 6ict that none
OF the bankers who arranged the visit
OF the allied financial commssio to
New York has seen ft to bring the
plans to the attention of the board
either officially or informally that these
bankers are OF the opinion that no need
exists for the consultation OF the board.
AS things stand now 1t is not to be
expected that the board Will move to
initiate any conferences regarding the
plans of these bankers. 1t is probable,
however. that when the advisory coun-
ell of the Federal Reserve Board.
elected to advise the board of matters
OF policy, meets next week there will
he "A discussion OF the proposed loan
at that time as to whether any needs
exist for the board to express itself at
this time.
Loan TO Germnny.
1t may be suited that neither in the
published nor unpublished decisions Of
the board has any point been involved
which may be- regarded as shedding
light on the course to be followed In the
present instance. The German loan
foated by Chandler & Bros. in New
York several months ago, which was
mentioned in the disclosures OF New
York newspaper regarding the German
munitions propaganda, gave rise to
no questions which came before the
board for solution.
The board knew nothing OF the loan
until long after II had been made. and
no extraordinary points calling for
special ruling have arisen from an ef-
fort ito include these securities in re-
discount operations. II was unGer-
stood at the time that the loan repre-
sented the purchase of unsecured OBJ
legations OF the German Government,
just as is proposed now regarding sim
liar obligations OF the British and
French Governments.
IL was pointed out to-day that the
conferences initiated by Treasury offl-
cials, in which Sir George Paish particl-
pated In behalf OF the British Treasury.
involved no points OF similarity to the
present loan situation. In that case the
Federal Reserve Board, on the point
OF organizing the new system, saw the
country's supply OF gold threatened by
exports to meet foreign Indebtedness
The board undertook the conferences IN
order to prevent dearth Of gold at