New Britain herald., 1915-09-29
A|IlES T0 GE BId
 CREDIT LOAN IN U. s.
AnslO-FrenCh Commission and
 Bankers Reach Agreement

New York, Sept 29.-Deanite for- nation of the big syndicate of bank CTS, who will float the half billion dollar credit loan to Great Britain and France, was begun today by T. F. 2 Morgan and com mpany and other finan- ciers who have been associated with them in the negotiations here with the Anglo-French financial commission. < It IS proposed to include in the mem bersfip of the syndicate trust com- lpanies and individuals from the At Iantic to the Pacific.
 In every financial center in the United States there is to be, under 1.-the present plan, a group of bankers Who will act as syndicate managers in their respective sections In the south and west these groups will operate 7 over somewhat enlarged areas; in the middle west, the north Atlantic states and New England, where the popula- X ton is dense, the groups will, in some cases, confine their activities virtually to the city in which the member banks are located and it's immediate suburbs.
 Matter of Surmise
 ! How long it will be before the Anglo French commission and the syndicate managers sign the contract which will embody in binding, legal form the pro- visions of the agreement, was today a matter of surmise. The agreement which will be embodied in the con- tract requires the ratification of both ( the British and French parliaments, and the contract cannot be signed until this is forthcoming.
 Official announcement of the details sflf f 11r 1oo, 1oI . x partures from the plans previously outlined in unofficial reports. Nothing is said about the exclusion of pur- chases of war munitions. The most surprising feature was the price at which the big issue is to be sold to the underwriting syndicate-96. To the investor the price will be 98. The two per cent difference will provide a profit to the syndicate and reimburse the members for the expense inci- ,. dental to the loans fiotation.
 Return to Allies $4SO, ,O0O, 1000.
 The return to Great Britain and France will be $48O, 1000. In other words. the two nations are paying $20,0OO,00 for the privilege of buying American products at top market prices. The $20,O0o,0o0 will buy this privilege, it is estimated, for only a few months, possibly for a year, when the credit probably will be exhausted and, if the war is still in progress, an- other credit will have to be estab- z lished or some other method devised to meet the bills then coming due.
 In addition to this s20,00O,O00 the two countries will pay $25,000,000 am nually for, five years-$125,O ,000 altogether--in interest to the holders of the bonds. Thus the unsettlement 4 of the foreign exchange market dur ing the past three months will have cost the two governments a total of z s145,000.O00 when the final bill is ' paid. -
 Five Per Cent. Bonds.
 The official announcement of the details stated that an issue was con- ; templated of joint Anglo French five year, five per cent. bonds. At matur- ity these short term bonds will be convertible, at option, into ten to twenty year A per cent. joint Anglo French bonds, constituting, as does the original issue, a first lien on Great S Britain and France. Both issues will be free from present or future British or France income tax requirements and will be payable, principal and in- terest, in dollars, in New York city.
 To accommodate small investors the bonds will be issued in denomina- ! tiDns as low as $100 and may be paid for in installments.
 The loan now arranged will cancel part of the adverse trade balance, but in view of the coming shipments of cotton and grain, which will swell this balance, persons in close touch with the exchange situation here are of the F opinion that further action will be necessary. At the same time the gradual improvement of the British export trade and reduction in the ( Importation of luxuries as a result of the newly arranged tariff schedule will } help the situation.