New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-18
BIG LOAN HINGES
ON WAR USAGE
Continued from page I

the British government o; the loan
would have TO be from 3 L 20 6 per cent,
the extra p 70 per cent over the yield
20 ultimate investors TO compensat
tho $4,000 banks, banking firms and
bond houses who were expected to CO
operate in the sale. The fact that his
irm was understood TO be one of those
whose aid was not sought in the be-
ginning, however, was thought TO be a
partial explanation of the difference
Of opinion.
Controversy About Russia.
Because there are banking houses
which will have nothing TO do with
loan wherefrom Russia shall derive any
direc. benefit, another element of con
troversy has arisen 20 make the path of
the ncgotiators thorny. These houses
are supported by other banks. which
have no antipathy TO Russia, but which
insist that The Russian needs shall be
taken care Of in a separate and distinct
arrangement They see Russia at the
end Of the war beginning a great new
industrial era, and they wish to have
the financing of it in the hands OF
American institutions.
The Russian matter, however, is be-
ing held in allegiance until the arrival
of Pierre L. Bark, the Cars Finance
Minister, in London early next week.
He is to have a conference there with
the British Treasury officials, when 1t
will be determined whether or not IN
sistence shall be made on Russias hav.
ING participation in the proceeds OF
the credit.
There wa a time when the question
of collateral for the credit to the Al
lies threatened TO become obtruslve
again. but that has been definitely put
aside. and Il is certain now mat tne
loan will be made or the general credl'
of Great Britain and France alone
Like any other external loan, 1t is IN
effect a first lien on the entire wealth
Of those nations.
Western 1ien Ready 20 Return.
James J. Hill, James B. Forgan, OF
Chicago, and most Of the other west
ern bankers are planning TO return 10
their home cities to-day Their mis-
SION has been practically fulfilled. They
came here not so much TO pledge the
HELM of the West and the Southwest for
the loan a. to make plain to the great
Eastern banking group, which was al
first tending to monOpolize the Amerl-
can side of the negotiations. that loan
which covered munitions OF war could
not he expected TO succeed If il were
in any way dependent on Western sub
scriptions.
Mr. Hill found another task awaiting
him. due 10 the belated recognition OF
the dominant bankers that they must
have the support of banking houses
with reputed German sympathies IN
their undertaking if failure was not 10
hoe these
reluctant institutions he was notably
successful. But in the financial dis
trict Yesterday it was common gossip
that he had found still another task to
b;s hand-to persuade the Morgan
groun of bankers that they must agree
70 the British view, that the loan
/ should be open TO all alike ana on
/ equal terms. Here, too, he is believed
| 10 have won victory.
Another Conference To-day.
The Anglo-French mission will hold
another conference this morning, but
| II is not expected that they Will get
| down to real negotiations until next
week. Lord Reading, chairman OF the
commission, is planning 10 spend tne
week end with friends, and the other
commissioners will also go out into the
country over Sunday.
In the foreign exchange market the
expectation of an early conclusion :. II
the loan arrangement was reflected
yesterday by sharp rises in all the =. ex !,
changes. including the German. by /
o,cIock demand bills on London had
Jumped GITSS u up to s4.73 a pound sterling, a
rise of 2la cents from Thursdays close
and of % cents from the low record
reached a few weeks ago. Franc cheeks
rose from $50 francs for dollar to
l576 Later they reacted sharply, when
il was reported that John D. Rocke-
Teller had declined to be party 10 'he
loan subscription. o1
Sterling checks went to s4.6911 and
francs TO 5.81 for dollar. They closed
at $47OA and 5.Sl. respectively. Ger
a marks against a price on Thursday
Of s2& cents. At the close Of the for
eign exchange market it was not known
in Wall Street that Mr.. Rockefeller S
agents had repudiated the published IN
/ .o,-viev with him