The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-10-08

tration may take action in this matter.
Not until next year is there any
threatening prospect of a new issue
appearing which Congress would have
to define and authorize In the mean
time, the Secretary of the Treasury is
only confronted with the necessity of
providing for the regular expenditures
in the face of the constant deficit. The
natural means of replenishing the
working balance would be to sell any
part of the already authorized and un-
sold balance of $240000,000 u. S.
Panama IS, or 100000 one-year 3
per cent Certificates of Indebtedness.
Daily developments will determine the
Secretary on this point, based upon
the amount of receipts needed to meet
disbursements. There is no indica-
ton, however, that a sale of Certi-
hcates or Panama IS is contemplated.
The entire problem will undoubtedly
be submitted to Congress next De-
cember, at which time it may be con-
sidered politically expedient and pre-
ferable to levy some additional or new
form of taxes, or revise the tariff, in
stead of increasing the National debt
for the sole purpose of replenishing
the Treasury for expenditures already
incurred.
Anglo-Fr Loan.
The official statements issued on
Tuesday by members of the Anglo
French Financial Commission indicate
that complete agreement has been
arrived at with regard to the credit
loan to be arranged for the English
and French governments. According
to Baron Reading, the discussion be-
tween the Anglo French financial mis-
sion and the American bankers have
resulted in the formation of definite
plan for a loan to the British and
French governments to be issued in
this country on a broad and popular
basis. The proceeds of the loan will
be employed exclusively in America,
for the purpose of making the rate of
exchange more stable, thereby help
ing to maintain the volume of Ameri-
can exports. The plan contemplates
the issue of $50O,000O00 fve-year 5 per
cent bonds, constituting direct joint
and several obligation of the British
and French governments, as regards
both capital and interest. No other
external loan has been issued by either
of these governments apart from
notes of the French treasury to a
limited amount, maturing in the next
six months. The bonds will be re-
payable at the end of FIVE years Nor
convertible, at the option of the hold
err, into AZ per cent bonds of the two
governments, repayable not earlier
than fifteen years and not later than
twenty-five years from the present
time by the two governments jointly
and severally. The bonds will be is
sued to the public at 90, yielding APP
proximately 5H per cent to the inves-
tor The work of offering this loan
will be carried out by a syndicate
which Messrs. J. P. Morgan & Co..
and large group of American bank
ers and financial houses will at once
set about to form. Such group will
include representatives throughout the
country and all members of the syndi-
cate will be on precisely the same
footing. This syndicate, whose bust
ness it will be to arrange that every
investor shall have opportunity to
subscribe to the issue, will contract
to purchase the loan from the two
governments at 90. This means that
the British government must pay al
least six per cent for the American
loan, taking into consideration the