Omaha daily bee., 1915-09-19
DISPUTE WHETHER
LOAN is FOR SHELLS
Anglo-Frenoh Commission and Some
American Bankers Insist II
Cover War Supplies.
OTHER FINANC1ERs SAYING NO

NEW YORK. Sept. 1s.-The
Anglo-French financial commission
ers, who are seeking to establish a
mammoth credit loan here, and
American financiers, who expect to
supply the money, were reported to
be at odds tonight over the burning
question Of including munitions of
war among exports to be paid for by
the proceeds OF the loan.
On several details Of the loan, the
commission and bankers have agreed
but on this major question. Il was
said, their views are diametrically
opposed. Further 1t developed to-
night there Is an apparent split on
the question in the ranks of the
American financiers.
Tho commissions attitude. 40 far as Il
can be interpreted, from a canvass OF
such bankers comforting with It today, as
would talk, is that the big credit, whether
a billion dollars or less, should provide
funds for all exports and that munitions
OF war certainly should be included.
Some U. 8. Bankers Say Yes.
Some American bankers think so, too,
but great many are said to be OF the
opinion that the loan should cover only
commodity exports, such as wheat, cot
ton and manufactured products and that
another method must be found to pay for
munitions of war, even II this method in
wolves the shipment of huge stocks OF
gold across the Atlantic to the United
States
The situation has not reached the acute
stages of q deadlock nor anything ap-
preaching It. but the line of demarca-
ton Is clear and well defined. Many
hours. II became known tonight, have
been passed in discussing this single is
sue and many moro. 1t was thought.
would follow in similar discussion be-
foro It is decided.
A minor point Of variance between the
commission and some American bankers
ls the role that Russia is playing in the
participation of the loan. The commission.
although acting officially only for Great
Britain and France. is popularity be-
lieved to contemplate including Russia In
its plans, too. Authority for such inclus-
ion. II is thought would follow the forth
coming conference at London among the
Russian and French finance ministers
and the British chancellor Of the ex-
chequer.
Want to Deal with Russia.
But some American bankers want to
deal direct with Russia and object. II IL
reported. to having It obtain money in
this country through England and
France.
A third point OF disagreement. subor-
the rate Of interest.
II the commissions callers have cor
rectly reflected its Views in their talks
with newspaper men, Great Britain and
France arc emphatic IN their assertion
that the proposed bonds shall not pay
more than per cent interest and there
will be no underwriting of the issue.
This would eliminate the possibility that
any group OF bankers would be paid fat
fees to place the loan on the market
here. The return to the banker and the
investor, Il Is reported. Is to be the
same.
As to this proposal, It is understood.
the American bankers generally have
been won over. Here and there, however
a NOtSo VI ulSSChA 10 HcdLu. oOtllc YUM
ters a return OF one-half Of per cent
to tho bankers is regarded as no more
than due. But II IL almost unanimously
believed that the commission has firmly
determined that London and Paris shall
be put to no greater expense than q
straight per cent interest rate, beyond
a moderate sum for clerical aid in dis
tributing the big issue here.
-
thought tonight. the issue would be
placed through a syndicate. which would
subscribe to the loan and that subscrip-
ton would be open to all oomsrs upor
equal terms.
g. 900 national and state banks and trust
companies throughout the United States
would secure exactly the same terms as
the largest or as any great private bank
ing firm, such as j. p. Morgan q Co.
Such. II is reported. is the present In
tention OF the commission. II this pro-
gram be followed. there are indications
amounting almost to positive assurance
It was said. that the so-called pro-Ger-
man financiers OF New York would. FOR
the most part subscribe millions Of dol
lars toward the project. always with the
condition Included that the funds be un-
available for munitions OF war.
II war munitions are included within
the scope OF the credit, II was asserted.
there IL not q so-called pro-GermAn
Banking house In New York City that
win subscribe q penny. Kuhn. Loeb a
Co. are reported to be willing to head
the list OF so-ealled pro-German houses
subscribing. II munitions be excluded.
This report. however. is not authorita-
tive. though apparently It Is well
grounded. as the firm has made no state-
ment over the signature OF any OF its
members. one way or the other.