New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-16

a mere coincidence he has all along
been accepted as an unofficial inancia'
ambassador.
The inclusion of the so-called Ger
man group of financiers in the eventual
! loan distribution is expected in the
| financial district to take the wind ou-
of the sails of the agitators who are
| trying 20 bring about the failure OF the
negotiations. or, barring that, the fail
ure Of the eventual sale of the bonds.
The agitation continued Yesterday.
| however, even TO the point Of deluglng
the foreign visitors at the Biltmorc
with threats Of physical injury.
Guard of Detectives Doubled.
Because of these threats the guard
of city detectives has been doubled,
! and the commissioners are accompanied
at little distance whenever they 90 out
of the hotel. They are taking their
| troubles cheerfully. however, and their
| plans have suffered no disarrangement
because of the warnings"
While the foreigners have come here
determined TO raise loan on the
credit of Great Britain and France
only and without collateral, they may
/ be compelled TO change their attitude
| that that in itself should be sufficient
/ There is no serious question among
| bankers here that the plain word of the
| two governments is enough security
! for American investors, but it has been
! found desirable. in view of the bank
| ing laws-in New York State. at least
that the loan be secured by col
| lateral.
The great trust companies Of this
! city are expected 10 invest largely
! In the loan. The laws of the State,
| however do not permit them TO buy
! for their own account securities Of
foreign government to the amount
of more than 10 per cent. of their
| capital and surplus. when those Sc
| curities are not backed by collateral.
| When there is collateral behind them,
however. they can buy them up 10
! the extent of 25 per cent. of their
! combined capital and surplus.
Thus a company with a capital and
surplus of. say, sl0,00O,000. could take
| for its own investment only $1,000
| 900 of the loan in its present form.
1 but would be able TO take $4,000 900
If there were collateral. The collateral
| itself is a matter CT comparative in
| difference TO the trust companies, be-
cause il is not sought as additional
security but only TO make simple COM
pliance with the banking laws.
Two Sides to Threats.
In connection with the pro-German
agitation against the loan. one OF the
| bankers connected with the negotia-
tions pointed out Yesterday that the
| threat to withdraw deposits from
banks that subscribed TO it had two
sides. Those who are said 70 favor
the Allies" he said, have deposits
| in bank as well as those who favor
| the German cause. In the Middle
| West. where banks are largely con-
| trolled by Germans, that is something
| that will have TO be considered. II
! il is necessary 10 combat a fire. back
fire is always a practical suggestion"
| He did not believe. however. that
| il would be necessary 20 resort TO any
! threat of reprisals, if only for the rea-
! son that bankers who a few months
! ago would have moved heaven and
earth TO stop a loan 70 the Allies, now
regard il as absolutely necessary that
such a loan should be made and that
! they should be parties 70 IT, ms
! is hound 10 have ali effect IN the
Middle West, where the strongest op-
position remains.
How influential the German senti-
ment is even in Chicago was recently
| illustrated, he said, when a prominent
bond house placed part of Canadian
security issue with bank IN the
WINDY City" only to have the sale
cancelled because of the protest OF a
German director of the bank. That
feeling in the Middle West is Ireco,s-
nized as an important obstacle in the
way of the loan, though at first 1t was
only lightly regarded.
Not All Smooth Sailing.
The Anglo-French mission is no:
finding its job all smooth sailing. II
| has haen told plalnlY in the last two