The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1915-09-21
TOGET FIRST MORTGAGE
ON THE BRITISH EMPIRE
Great Syndicate to Handle Loan
Asked by AnglO-French
Commission.
THE MIDDLEMAN'S GRAFT.
Largest Underwriting Syndicate the
western World Has Ever Known
i'm Process Of Formation.

New York, Sept. 2O.-The largest
underwriting syndicate the western
world has.ever known was in process
of formation today to handle the pro.
posed "billion dollar" credit loan to
Great Britain and France which ha,
now shrunk, 1t was reported, to a
sum. yet to be determined, between
sSoo,ooo.ooo and ssoo,oo0.o 900.
This mammoth syndicate, accord
ing to tentative arrangements said to
have been agreed upon, will be ma
tion-wide in it's character and will
comprise national and state banks
and trust companies from the Allan
tic to the Pacific. A number of So
called pro-German financiers. it was
reported, will go into the syndicate
If 1t finally is agreed that none of
the loan will be used to pay for
munitions OF war
The syndicate will put out the
British AID French government
bonds to secure the loan at par. The
bonds will pay per cent interest
and will be first mortgage upon
the entire English empire and
France and her colonies. Even the
staggering war loans raised at home
will come second TO the loan to be
fioated here.
For the first time in history the
English pound sterling has yielded
first place IN International finance to
the American dollar in this respect.
The whole big bond ISSUE principal
md interest, will be payable in
American dollars.
f., The bonds will run Ave years or
ten. it is not yet known which.
THE MIDDLEMAN'S GRAFT.
In agreeing to have the issue han
died by an underwriting syndicate.
the Ahglo-French financial commits
sion apparently has deferred to the
views Of American financiers, the ORR
Binal intention of the commission
having been reported to provide for
general subscription to the bonds
without the underwater as a middle
man.
AS soon as all the terms of the
loan are definitely agreed upon,
banks and trust companies through
out the country, it is understood,
will be invited to become parties to
the syndicate. it is not known how
many such banks will be asked, but
ii is rega rded as certain that the
membership will consist of hundreds
OF institutions. and possibly thou
saids.
These banks will be given small
profit, somewhere in the neighbor-
hood OF one-half of one per cent. it
is believed. Upon this point there
had been marked divergence of opin-
ion. the commissioners previously
reported attitude having beeh that
bankers and investors should pay the
same price for the bonds. X
great many American bankers,
IL is said, demurred to this on the
ground that they would be put to
considerable expense in handling the
onds and that reasonable return for
their trouble was no more than equit-
able.
NO MUNITIONS THEREWITH.
The next big question to be settled
it was said. was whether munitions
of war should be paid for out of the
proceeds of the loan. Thsl commits
sion is eaid TO believe that Athe loan
should cover mynftions; a great
tnany American bankers think il
should not. The merits of the often
discussed ,~'n1atter of whether II is
rigbt-or wrong to ship mrnitiona
sbfoad. do not. At is said. enter into
This - ap estipn, What does. inter
italy irtp ifhq censd grafton of\tho
matter It us rgpofted, hs the attitAa- /.
o. certain banks Which would Ne
coayerted to/sappStt In case the no.
fund PROVIDES payrhsst only for conn
modities Stber THAI nnitions. upos\
this anf other min4r details the
cofnmjssion snd Arbe Mean fnsnciars
their cosi it,pnces today.
.'.s. 4. s.. A 4 60. Z