Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-09-11
Becoming Familiar With Stu
alton Before Negotiating
for Huge Credit.
AT LEAST $780, 100000
WANTED FROM THE U. S.
Great Britain and France, It Is
Said, Contemplate Going to South
america fer Grain and Meats.

| NEW YORK, September 11.-Actral
negotiations as to the credit the mem
bers of the visiting Anglo-French COM
mission hope to establish here will not
be begun for several days. During
this period the commission expects to
meet many bankers and exporters and
to become familiar with the situation.
With these preliminaries disposed of
the commission will start on the
actual details of the proposed loan.
For publication, the commission has
confined it's comment to statement
issued upon it's arrival here. Although
the commission comes as the repre-
sentative of the British and French
governments and importers of both
nations, it seems likely that it may.
before it's departure, be called upon to
adjust the whole foreign exchange sit
uation for all the entente powers. To
the previous report that the delega-
ton probably would act for Russia
there is added the intimation, on good
Authority, that Italy might within
few days find it expedient to request
the commission to act for its govern
ment as well. Italian money is de-
preciated in this market to a degree
| unequaled by any other.
May Buy in South America.
Great Britain and France. it Is said,
have contemplated seriously the posi-
bflity of having to go to South Amer
lea for grain and meats to an extent
much greater than at present. and of
turning to Egypt for their cotton. Mu-
nitions of war they must buy in the
United States, because there is no other
market; but these, it is said, form only
minor fraction of tie total exports
and can be paid for in gold for long
time to come.
From an authoritative source it is
learned that not only have Great Brit
ain and France contemplated heavy re-
duction in their purchases herein
every line except necessities , %nlc n
has been decided that such reduc-
ton would be the only alternative left
them should the commission fail in its
mission to the United States.
=. Billion Wanted Here.
Five hundred million dollars is the
smallest sum which the commission
hopes to- borrow. 1t would much rather
have a round billion. In view. how
ever. of the many difficulties which lie
in the way of floating credit loan Of
such proportions in America. 1t is
thought that the commission's task
will be almost of herculean proper
tions in borrowing the smaller sum:
The entire proceeds. of course, would
be used in paying for American sup
lplies.
I Chief Of the obstacles which the COM
mission faces 10 the nature of the col
lsstefa1 It f, Regarded as almost i'm
/ peratiye thatssAmerican securities be
E0kSesA as Collateral il the loan is to
fe 9gaA4ed sfarEfly9 by the national
EExhISHt3 Il wSuld have to be IL Of
the sproportions indicated SO far. 1t
was :sa3d. the holders Of American Sc
curities abroad have evinced a strong
/ tendency to cling to their holdings as
| the best Investment in the world today.
Nothing approaching half a billion dol
lars of American securities is at the
command Of the British and French
governments, it is said. although citi-
zens of those countries have eight to
ten times that amount of such securi-
ties in their vaults. How to get them
out and into the governments hands
has been the chief financial problem
of both England and France recently,
notwithstanding the handsome pre-
miums to be obtained by selling them at
present. while the exchange rates are
abnormally depressed.