New Britain herald., 1915-08-21
ARABIC AFFAIR MAY
 BLOCK BRITISH LOAN
American Bankers May Await
 Outcome Of Loss Of Liner

New York, Aug. 21.-The torpedo- ing of the Arabic may result in the temporary suspension of the negotia- tions looking toward the granting of a big loan to Great Britain by Ameri- can bankers. The feeling yesterday was that no definite proposals should be accepted until all the facts con- corning the sinking of the White Star liner were in the possession of the state department and the Judgment of Secretary Lansing and Presldent Wilson had been made known to the American people.
 For the changed attitude of the bankers the reason was put forward that should the relations between the United States and Germany become more strained than they are the con- sequences may make it necessary TOT the treasury department to issue large amount of government bonds for purposes of national defence. In such an event, it was pointed out, it will be necessary to conserve the financial re- sources of the country and at the same time make it ill advised to float for eign loan of the size talked of.
 Securities Reported Abroad.
 Bankers with important European connections were not inclined to be- lieve, the reports of huge amounts of securities and gold said to have been on the Arabic consigned to banking firms and stock exchange houses. The amount of the securities, according to some dispatches, was placed as high as S15, 5,000,0OO, but the gold on board it was thought, would not exceed $200,O0O
 It was learned definitely that one in ternational banking firm was to have received $3000O0 in stocks and bonds as deliveries on sales previously made by foreign holders of American securi- ties. In this instance, which, it was said, applied to others, no permanent loss was expected, as every precaution had beSn taken for their replacement in just such a contingency IS sub marine attack. The securities had been photogra phed, the photographs haveing been dispatched on neutral vessel along with the insurance poli- cies. The photographs will be used as affidavits of means of Identification in presenting claims for the issuance of duplicates.
 Serial Numbers on Record.
 It was also pointed out that even if no photographs had been taken the serial numbers of the securities shipped would be on record, and af ter a more or less prolonged and tedious process of comparison, inves- tigation and affidavit making, dupli- cate securities might be issued. It was reported that the Ara bic carried a large amount of the stock of the Canadian Car and Foundry company, a concern which has received more than $15O,OOO,OOO in war orders from the Russian government.
 One of the factors that tended to discredit the rumor that a large amount of gold was in the hold of the White Star liner was the information obtained at the offices of J. P. Nor gan & Go. that they had no knowledge of shipment of the yellow metal con- signed to them. Officials of the Inter- national Mercantile Marine company also claimed to be equally ignorant of the character of the ships cargo. They did not know whether gold or securi- ties were on board.
 T lHdl arrangements were InaOe yeS- terday for the sale by the Morgan firm representing French banks and the French government of the Penn sylvania company 3-4 per cent. franc bonds that were used as part collateral for the recent loan to France of $43,- 0O0,00O. The proceeds of the bonds which were sold to Kuhn, Loeb & Co.,, acting for the railroad, will be used to
 
 French loan.