The Birmingham age-herald., 1915-09-21
LOAN SYNDICATE
 IS BUSY WORKING
 OUT PRATICAL PLAN
Matter of Percentage to Be Allowed the Bankers for Services Is Being Con- sidered-No Official An nOuncement

New York. September 2o.--Munitiops of war will not be allowed to block the proposed big credit to Great Brit ain and France; nor will the $600.000 900 or ss0o.0oo, 900 to be obtained be locked up in a New York treasure gotiations for raising the money said today
 Ut would be absurd" said one bank CT, "to assume that the whole prob lem of stabilizing exchange. and thus providing for continuance of all Amer ican exports. will be halted over a cib- cussion of whether credit loan should be made available for intuition pay ments. The big thing Is to stabilize the exchange, then the matter of pay Ing for munitions automatically takes care of Itself"
 Exports of munitions, it was estf-t mated. constitute less than 25 per cent of the total value of shipments to Great Britain and France. If provi- sion be made for shipment of other commodities exchange will, in the opin- lon of bankers become stabilized. It would not then be difficult to find a method of paying for munitions. if it were absolutely necessary to adopt a different method, 1t is believed Tho commission, as we'll as Amer ican bankers is reported to have taken the attitude that the first task Is to sabilize exchange.
 Tentative Proposals | It was iepo.sted tonight on good au- 1 thority that the tentative proposals l now. up for adoption provide for in- | stallrnent subscriptions to the loan on the part of the guarantors. Some as- suncd that the sum each bank should pledge would Do payable in four equal insta1lments. subject to call and that bonds would he issued as each install men was paid. Ire commission thus would avoid payment of interest on the entire loan long before all the funds Were needed.
 Another suggestion was that the money each bank would guarantee to- ward the loar should remain in the bank until occasion should arise for it's use. Then, 1t was said each of the big syndlcates of underwriting banks would be called on for It's proportion- ate amount. Tor instance, should one bank subscribe for s1,000000, the full amount would be left in its vaults, 1t was thought. simply being transferred on It's books to the credit of the loan syndicate
 With this having been done, should it be found desirable to have one fourth of the entire credit available in New York, the bank would be called upon to transfer one fourth of it's sub scription to New York, or $2bo, ,o0o,- The idea of tying up the full amount of the loan at once seemed to be un- attractive to both parties.
 Bankers Want Percentage
 Many American bankers were of tho opinion that the one-half of one per cent allowed them for their services ould he cn that basis for each year of the loan. Thus If the loan should run for five years 1t was thought the banks would cbtain the bonds at 971S, or 2h per cent Give times one-half of per cert) below par.
 Another Ircposed feature. 1t was re- ported, was that the short term bonds whether five or 10 years, should in- clude the privilege of conversion to long term British and French government | onds paving f1s per cent interest at the end of the short term period
 In the absence of official announce ment the situation was said to be en- couraginG today. In this connection. 1t was reported but without confirma- tion that a me nber of one of the chief New York hankr of the so-called pro- German group. had made overtures to the commission looking toward plac- ing its name on the subscription rolls.