The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-15
LOAN MAY BE FOUGHT
BY GERMAN GOVERNMENT
Billion Dollar Credit to France and England, if Unse-
cured, Admitted in Washington to Present
Extremely Grave Problem.

| WASHINGTON, Sept. li.-Onicials her,
received with intense interest tonight
the disclosure of the plan OF the allied
financial commission to establish a huge
| credit in the United States through the
issuance OF Joint bonds of the Govern
ments of England and France. The
additional information regarding the de-
tails of the plan which has been formu-
lated by the visiting commission did not
shake the confidence felt here that the
Administration will not see ft to volun-
teer unfavorable suggestions to the
bankers who contemplate participating
| In the loan unless II Is shown that the
venture is to be something different from
a credit loan.
The understanding here is that all
that the Allies seek at this time is the
establishment OF "A large credit sufficient
to meet the requirements OF purchases
In this country exclusive of munitions
OF war. The view which was given
official sanction to-day was that the
purpose OF the loan will influence the
attitude of the Government more than
the manner In which IL is made.
II was indicated that the Government
already has committed itself to policy
of non-interference with loans which
are established solely for purposes OF
credit as a means OF facilitating the
foreign trade of the country and that
unless issues other than this are in
volved in the plans to be submitted TO
the New York bankers. the Government
Interference.
Officials OF the State Department aud
the White House are disposed to wait
more complete disclosures of the Allies
PIN before making known the decision
OF the Administration AS to the course
IL will follow. There is little likelihood
that any commitment will be forthcom-
ing from President Wilson until the
plan has been launched formally. unless
1t eventuates that New York bankers
decide to seek his approval before un-
dertaking to consummate any plan
which may be presented to them. Until
this time the bankers have not ap-
preached any OF the Presidents official
advisers or members of the Federal
Reserve Board.
Grave Problem 60 4. =.
Administration officials regard the at
tempt TO be made to float in this country
a loan OF $1,000, ,000.0 for the allied
belligerents as presenting one of the
gravest problems that has arisen out OF
the European war. 1t became known
to-day that the German Government al
most certain: will make a strong pro-
test to President Wilson against the
sanctioning OF an unsecured loan. Coun:
Won BernstorfY. the German Ambassador.
will be prompt to lodge an objection
with the state Department II the alliei
fnanciers and the New York bankers
with whom they are in conference at
tmept to consumnate the loan plan oil
an unsecured basis.
Some doubt obtains in official quar-
ters as to the possibility of an imme-
diate consummation OF the loan plan.
Indeed. predictions were heard in many
quarters that New York bankers would
find II extremely difficult. unless pub
lie sentiment takes "A very favorable
turn, to finance loan of the indicated
proportions
Although II was said officially to-day
that the matter of the aspects OF the
loan plan which might involve American
neutrality has not been brought to the
attention of the State Department or
the White House IN any formal way
there were reasons for believing that
ready have acquainted themselves with
the fundamentals OF the plan for the
loan and that the attitude of the Ad-
ministration has been considered in the
light of this Information.
1t seems safe to state that II the
bankers pursue this policy In arranging
for credit loan of whatever propor-
tions. no volunteering of unfavorable ,
suggestions from the State Department
need be anticipated.
The policy of the Administration !
toward the lending Of money to Euro |
pean Powers after the outbreak OF the
war was disclosed by Secretary Of State !
Bryan. in response to an inquiry from
the Swiss Minister as to whether an
effort to obtain loan for the Swiss Gov
ernment in the United States would
meet with opposition. Secretary Bryan
let II be known that the Government
would not oppose a loan to any Euro
pean country at peace. but II was un-
derstood at the time that he expressed
opposition TO loan Of 100000. 900 to
the French Government, which a New