New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-20
NATIONWIDE
SYNDICATE TO GET
LOAN FOR ALLIES
Every Banker in America
Who Desires to Share in
Underwriting.
TO OBTAIN BONDS
SHADE UNDER PAR
Total May Not Exceed S500,0O0,-
OOO-Separate Arrangement
Sought for Munitions.

000-Separate Arrangement
Sought for Munitions.
Over the week end new light was
thrown on the discussions between the
Anglo-French financial mission and the
American bankers for the establish
ment OF an immense credit in this
country. 1t Is now definitely decided
that the bonds to be issued on the Joint
credit of Great Britain and France will
be underwrtten by syndicate, and
that the syndicate will receive the Sc
curities at Il price slightly under par.
The syndicate will be nationwide,
that is, every banking institution,
bankers firm or bond house that asks
for it will be permitted to participate
on the favored basis. This may be re-
garded as q tactical victory for the
Americans, if there is anything in the
stories that were running around Wall
Street last week to the effect that the
foreign delegates were insisting that
no preference should be given to bank
ers over ordinary investors.
AS has already been reported, the
rate Of interest the bonds will carry is
per cent and the price to investors
will be par. The term of the issue will
be between five and ten years, the
exact period not having yet been de-
termined.
Total Amount Undetermined.
The amount OF the loan still remains
undetermined, but there is reason for
stating that it will be much closer to
$500,0O0,O0O than the S1,00O,OO 900
originally sought. There are several
factors governing the ultimate decision
Of what the figure will be. OF these
the most important, so far as could
be learned yesterday from American
bankers. is the question how munitions
payments Will be cared for.
In the view Of the Western bankers
and many OF those prominent in the
East they cannot be embraced in the
commercial credit arrangement. II
they are the loan is dead, so IA as
the West is concerned, and the support
of bankers with German affiliations in
every part Of the country will be denied
TO the loan dotation.
With munitions payments excluded
the need for having the credit as big
as a billion dollars disappears. II is
asserted that only the practical diff
Guilty of separating expenditures for
munitions from those that may be
made for other articles of commerce
between the allied countries and the
United States has prevented the NUM-
tions matter from being finally dis
missed before now.
Want Separate Credit for Munitions.
The expectation still remains among
Wall Street bankers that these pay
ments for ammunition, artillery, ETC.,
will be covered by a separate arrange
ment. The presumption IS that credit
covering these will be secured by
American bonds and stocks, owned
abroad, and in part by gold. Hitherto
they have been paid for as they were
put on the piers in New YORK, with
checks on J. p. Morgan g. Co, the
banking firm being previously put IN
funds by the British and French gov
ernments through gold shipments to
this country and proceeds Of American
security sales. -,
While the Anglo-French mission Will
continue its conference to-day, 1t is not
expected that an announcement VIII pc
ready until the end of the week at the
earliest. Bankers who have talked
with the commission declare that little
in the way of a broad general under
standing yet exists, but that by SLOW
process Of elimination working basis
is being arrived at. Progress has been
made. but there has been one step
backward for every two forward. Amer
ican bankers professed themselves
oratifed Yesterday at the evidences OF
co-operation between the representa-
.tives of their group and the Anglo
French delegates. There are no I'M
portant differences between them, they
eaid, and such division as there Is CON
Germs merely matters of opinion. which
the presentation of further facts is
likely 10 alter
Big Commission Not Demanded.
II can be said with positiveness that
there is nothing whatever IN the stories
that the Morgan group heIu out Aoi
big banking commission on the loan. On
the contrary, their stand has been eH-
actly opposite. They believed the loan
should be hoated wholly as a patriotc
undertaking, with bankers faring no
better than other investors, whether
the subscriptions Of the latter were
iaroe or small A concession 10 the
bapkers who will comprise the syndi-
catn of guarantors was secured. de-
snite their attitude. rather than be-
cause of their help.
As il is. the advantage the guaran-
tors are 10 get will be comparatively
small. the additional yield to them
which will have 70 cover their expenses
of vending probably amounting to
about one-half Of per cent. This VIII
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