Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1915-09-18
MEET IN SECRET
TO adjust SPLIT
OVER WAR LOAN
Whether Credit Shall Provide
Funds for Munitions Causes
Differences.

NEW YORK, Sept 1s.-The two
parties to the negotiations looking to
the creation of mammoth credit
loan here to Great Britain and France
met In secret again today in an ef-
fort 10 adjust their differences over
this question:
Shall the big credit-billion dollar
or otherwise-provlde funds for the
payment of munitions of war, as well
as wheat. cotton and other oommodi-
ties, or shall O separate and distinct
method be adopted In settling the bin
for rifles, shrapnel, war automobiles,
aeroplanes and other items coming
under the meaning of the word mu-
nitions?
The Anglo French financial com
mission, who are conducting nego-
tiatlons on behalf of Great Britain
and France, are said to want the
credit to take care of munitions.
The American bankers-or what
appears to be majority OF them
apparently do not. In their camps,
however, there Is marked division of
opinion. while the commission is re-
ported TO be unanimous.
Upon the following things both
parties are said to have reached an
agreement:
The life of the loan, which is to be
hVe years. ten years, or from five
to ten years, as may be deemed ad-
visable later; the form OF the bonds,
which are to be first lien (f1rst mort
gage) bonds on Great Britain and
France Jointly, and the collateral, 1t
having been agreed that there shall
be no collateral.
On the other hand, there is an sp-
parent disagreement on these features
of the proposed credit:
The question Of including munitions
of war, the matter of\Russia's parti-
cipation and the interest rate. The
last named, 1t is said, however, is
practically settled, as the commits
sion has taken the positive stand that
Great Britain and France will not
pay more than n straight five per
cent. interest rate, bankers and in
vestors to obtain the bonds on the
same terms. If this be the case there
will be no underwriting syndicate, no
big fees for placing the loan and the
subscription books will be open to
all comers, pro-German or pro-ally
So-called pro-German flnanciers of
New York, 1t Is understood, are will
Ing to subscribe literally to such a
loan, If none of the money be spent
In paying for munitions of war.
A possible solution for the vexing
munitions question is the suggestion
that such shipments be paid for IN
gold to be shipped here by Great
Britain and France. 1t is a matter
of general knowledge that the two
nations are prepared to ship enough
gold here to do this at present, al
though bankers here are unanimous
" of the belief that this is undesir-
able as 10 would tend toward a period
OF imitation and speculation. Another
suggestion Is that q separate credit
be established to provide funds solely
for the payment of war munitions.
Az to the interest rate, most Ameri
can bankers seemed to have become
reconciled, although in some quar-
ters there is a more or less insistent
demand that the bankers handling
the loan be paid at least one-half of
one per cent. for their trouble.
The Russian question, too. is re-
garded as minor, The point in this
phase Is that some American bank
ers believe they should deal directly
with Russia and not through Great
Britain. In this connection 1t is
pointed out that when the war ends
the United States will find In Russia
A. great and receptive market and
that II negotiations over the loan are
direct now the way will have been
paved toward closer commercial re-
iations between the two nations al
that time.
Plans have been made by the COM
missioners to spend Sunday out of
town. They probably will leave late
today, most of them being the week
end guests Of bankers with whom
they have conferred here.