New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-30
Chicago Bankers Waiver;
Bonds May Sell Well

from , stan Correspondent Of The Tribune
Cleveland, Sept. 90. con board Tween
tieth Century Limited) After theli
living visit to Chicago, where they re
NAMED Just twenty-four hours, Lore
Readings party of the Anglo-Frenci
financial mission are returning to Ne"
York, with promises Of strong support
from capitalists in the West and from
other investors Of large means, for the
$500. OOO. 900 loan for the Allies, but
with no assurance that the banks Will
be subscribers.
The position Of the banks was SCI
forth by John j. Mitchell in a talk
With the correspondent of The Trib-
une As head of the Illinois Trust and
Savings Bank. one of the larges IN
stitutions of its kind in the country
Mr.. Mitchell spoke with authority TX
pressions TO the same ehect were Cd
tanned from George NJ. Reynolds, presl
dent of the Continental and CONNER
cial Bank, yesterday. Mr.. Reynolds
said this morning. after conference
with Thomas W. Lamont, Of J.. +. Nor
gan & Co., that the attitude OF his
bank and that of other big Chicago IN
stitutions was unchanged
There will be a number OF big IN
dividual subscriptions to the loan IN
Chicago" said Mr. Mitchell. but }
don't believe many banks II any w'i'
The banks. then, are unwilling to
he identified with the loan" ne was
asked.
po-;lg il and if brokers decide to come
in we will lend them up 10 the NM.
on the bonds. We will look on the
bords as first class collateral. You
must remember that more than 40 pes
cent OF our population here IS eIther
German or Austrian and the banks
,imnlv can't afford 10 come IN as
hanks. We bankers personally are not
onnosed 10 the loan. but we have TO
consider the attitude of our deposit
tors and correspondents"
Mr.. Mitchell went on TO say, as the
heads OF other important institutions
had. that the loan would not be pre-,
Indeed bv the banks, but that II would
he submitted to their boards OF dlrec-
tors Strictly from the standpoint OF
is investment value, he thought the
loan offered an excellent opportunity.
az Chicago's total Of subscriptions
ran as high as $5o,000,000," said Mr..
Mitchell. "it would be a big surprise
TO a number Of the bankers"
Not only Mr.. Mitchell, but other
bank presidents who were interviewed
for The Tribune, made the comment
that the delay in concluding the nego'
tiations in New York had given op
position 20 the loan chance TO crys-
tallize. III the proposal had been
made in Chicago ten days ago II would
have been snapped at trust com
pany president remarked.
Nevertheless, those most interested
in the successful fotation of the loan
said to-day they felt confident that
when the Chicago institutions saw how
well il was going in the East and in
other parts OF the country they would
quickly fall into line.
When Lord Readings party were
leaving Chicago, Sir Edward Holden
said:
"If the banks axe not going 10 take
the loan or for any reason It should
not be succe ssful, you'll see exchange
trade will suffer great injury. Inter
national bankers will have no exchange
10 sell and there will be none to buy
The United States will suffer not only
in its trade with Great Britain and
France but also in its trade with all
other countries that finance their com
merce through London. For example
you won't be able to get gunny sacks
from India or copper from Chill in the
way you have been doing. 1t will have
"a demoralizing effect on all future
contracts"
Thomas W. Lamont had another
meeting to-day with about twenty-five
representatives OF bond houses in Chi
cago. at which there was a general
expression Of great interest in the
!Jan. A committee was appointed 10
az as clearing house for the ex-
change Of news between the groups