Evening star., 1915-09-16
DIFFER AS TO RATE
ON BILLION DEAL
AnqIo-French Commission and
U. S. Commission Dis
agree on Interest.
OFFER OF 5 PER CENT
AS THE MAXIMUM FIGURE
Financiers Considering the Loan Be-
lieve the Huge Issue Should
Yield Higher Profit.

NEW YORK, September 16-Standard
OIL milliOnafres, including John ID.
Rockefeller, jr., 1t was reported today,
are considering the terms of the pro-
pOxed bflIiOn-dollar credit loan to
Great Britain and France with a view
to participating.
NEW YORK. September 1s-Mem-
bers of the Anglo French financial COM
mission and American bankers work
ing for the success of the proposed bill
lion-dollar credit loan to Great Britain
and France have somewhat different ideas.
it became known today, as to some of the
terms governing the loan. chief of which
is reported to be the rate of interest. The
commission is reported to believe the
maximum rate should be per cent, many
American bankers believe the mammoth
issue should yield at least " per cent.
while there is some talk of requiring s
per cent.
per cent loan, the commission is
reported as having said. should be sold
at par or a shade under. Some fnan-
ciers here are said to doubt whether
the American public would subscribe
to a straight per cent loan, without
collateral, at more than s5, if that
This view. however, is not held by all
the American bankers.
Obstacles in the Way.
The way of the commissioners in
agreeing to pay more than per cent
interest, if they were inclined so to do,
would be beset with obstacles, in the
opinion of some bankers. who point out
that Great Britain's internal loans have
borne 4 y and 5 per cent and that the
ponds thus issued are subject to the
British income tax.
The magnitude of this burden, they
largest Incomes of Great Britain are taxed
as high as u per cent. while from IL to
10 per cent is by no means uncommon.
Bearing in mind the prime necessity that
the securities to be offered here for the
b1lilon-doilar lean must be absolutely free
from all British income tax requirements.
these bankers point out that the terms
Great Britain and France propose to offer
American investors are infinitely bet
ter than the terms offered by these gov
ernmentS to investors at home They
Doubt whether the commission would
risk the displeasure Of home investors
by making terms even more favorable
such as offering more than per cent In
terest-to Investors abroad.
A possibility that obtained widespread
discussion today was that payment for
munitions of war would be excluded
from the operation of the proposed
credit loan. This report was that the
big credit loan would be used to pay
only for foodstuffs and other prime
necessities, and that payment of war
munitions would be made in gold.
Satisfied With Progress.
Members of the commission seemed
we'll satisfied today with the progress
made thus far. Millions In pledges. it
was reported. had already been secured,
and more pledges were tentatively as
sured. Negotiations. 1t was said, had
reached the stage where an authorita-
tive statement from the commission
would be issued soon, perhaps tonight.
1t developed that not only had the So
called pro-German group of New York
hnanciers failed to receive Invitations
to participate in the negotiations, al
though the hint had been dropped that
they would welcome 1t, but members
Of the group had become convinced that
no such invitations would be forth
coming. Certain members of the group
have felt somewhat hurt by the failure
to include them.
From these sources today came. the
expression Of an opinion that bil1ion-
dollar loan was unnecessary and that
credit Of from $500, 600, 900 to $780,
100000 would be ample. Payment for
munitions of war, it was thought.
should be excluded from the proceeds
of this loan. Under no circumstances,
it was said, would members of this
group participate in loan which would
cover ma ayment of war munitiops