Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1915-09-16
NATIONS BANKERS
AND LOAN AGENTS
At ODDS, REPORT
American Financlers Holding
Out for S 1-2 or 6 Per
Cent. Interest Rate.
PAYMENT FOR ARMS
MAY BE EXCLUDED
Senator Lewis Protests ST.
900, 900, 900 Issue to McAdoo
and Reserve Board.

NEW YORK, Sept. 16.-Members of
the Anglo French financial commits
sion and American bankers working
for the success of the proposed billion
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 be-
lieve the maximum rate should be 5
per cent. Many American bankers
believe the mammoth issue should
yield at least 519 per cent, while
there is some talk of requiring per
cent.
per cent. loan, the commission
Is reported as having said, should be
sold at par or a shade under. Some
f1nanciers here are said to doubt
whether the Amerisan public would
subscribe to a straight per cent.
loan without collateral, at more than
30 If that. This view, however is not
held by all the American bankers.
The way of the commissioners in
agreeing to pay more than per
cent interest If they were inclined
to do so would be beset with obstacles
in the opinion of some bankers, who
point out that Great Britain's internal
loans have borne Az and per cent.
and that the bonds thus issued are
subject to the British income tax.
British Incomes Taxed High.
The magnitude of this burden,
they state, can be realized by the fact
that the largest incomes of Great
Britain are taxed as high as q per
cent, while from IL to Is per cent.
is by no means uncommon.
Bearing in mind the prime neces-
sity that the securities to be offered
here for the billion-dolla loan must
be absolutely free from all British,
income tax requirements, these bank
ers point out that the terms Great
Britain and France propose to offer
American investors are infinitely bet
ter than the terms offered by these
govc~ornents to investors at home.
They d. abb wAetner the commission
woulG risk the displeasure of home
investors by making terms even more
favorable--such as offering more
than five per cent. interest-to in.
vestors abroad
A possibility that obtained wide
spread discussion today was that pay
ment of 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 pay
ment of war munitions would be
made in gold.
Members of the commission seemed
well satisfied today with the progress
made thus far. Millions in pledges, il
was reported, had already been Sc
cured andUnore pledges were tentative
ly assured. Negotiat tions, 1t was said,
had reached the stage where an au-
thoritative statement from the COM
mission would be issued soon, per-
haps tonight. 1t developed today that
not only had the so-called pro-Ger-
man group Of New York financiers
failed to receive invitations to par
ticipate in the negotiations, although
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 a bill
lion dollar loan was unnecessary and
that a credit of from 100000, 600 to
s400, 900, 900 would be ample. Payment
for munitions of war, 1t was thought
should be excluded from the proceeds
of this loan. Under no circumstances,
1t was said, would members of this
group participate in a loan which
would cover payment of war muni-
tions.