The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-09-25
CREDIT PLAN TO co THROUGH
QUESTION OF PAYMENT FOR MU.
NlTIONS WILL NOT BLOCK
BIG LOAN.
Big Thing Is to Stabilize the Exchange
and not Whether Payments for Mu-
nitiOns May be Madc-BOnds May
Sell Slightly Below Par.

New York, Sept. 20.-Munitions Of
war will not be allowed to block the
proposed big credit to Great Britain
and France, nor will the $500, 900, 900
or $S0o,O00,000 to be obtained be
locked up in New York treasure
chest, persons in close touch with ne
gotiations for raising the money said
today.
1T would be absurd" said one
banker, ''to assume that the whole
problem Of stabilizing exchange, and
thus providing for continuance of all
American exports. will be halted over
a discussion whether a credit should
be made available for munition pay
ments. The big thing is to stabilize
the exchange; then the matter Of pay
ing for munitions automatically takes
care of itself"
\ Exports of munitions, it was esti-
mated, constitute less than 25 per
cent. of the total value of shipments to
Great Britain and France If provi-
sion be made for shipment of other
commodities, exchange will, in the
opinion of bankers, become stabilized
1t would not then be difficult to find
method of paying for munitions, if
1t were absolutely necessary to adopt
a different method, it is believed.
The commission. as we'll as Amer
ican bankers. is reported to have TAX
en- the attitude that the first task is
to stabilize exchange.
1t was reported tonight on good au.
thority that tentative proposals now
up for adoption provide for install
ment to the loan on the part of the
guarantors. Some assumed that the
sum each bank should pledge would
be payable in four equal installments
subject to call, and that bonds would
be issued on each installment as paid
The commission thus would avoid
payment Of interest on the entire loar
long before all the funds wore
needed. Z. -
Another suggestion was that the
money each bank would guarantee to.
wards the loan should remain in tho
pank until occasion should arise FOL
its use. Then, it was said, each O.
the big syndicate Of underwriting
banks would be called on for it's pro
portionate amount The idea Of ty.
ing up the full amount of the loar
at once seemed to be unattractive tC
! both parties.
| Many American bankers were oi
the opinion that the 1-2 of l per cent
allowed them for their services would
be on that basis for each year of the
loan. Thus if the loan should run 70,
five years. it was thought, the bank:
would obtain the bonds at 81 IL o,
IL per cent. Give times 1-2 of 1 DC,
cent? below par.
Another proposed feature, it was re-
ported, was that the short term bonds
whether five or ten years, should in
clude the privilege Of conversion t,
long term British and French govern.
ment bonds paying 1-2 per cent in.
tercst, at the end of the short tern
period.
In the absence of official announce.
ment, the situation was said to be Ell.
couraging today. In this connection q
was reported that member OF one o!
the chief New York banks of the so.
called pro-Gcrman group had made
oNertures to the commission looking
toward placing it's name on the syn.
dlcate roll. This could not be con.
| lirmcd.