The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1915-09-20
SYNDICATE WILL
UNDER WRITE
BIG LOAN
American Bankers viii Raise MIL
ions for Allies
TAKE BONDS FOR SECURITY
viii Be Sold to All Banks that Desire
to Share in the
Business,

New York, Sept. 20.TThe proposed
mammoth credit loan to Great Brit
ain and France. it was reported last
night, is to be undeFwritten by
large syndicate Of American linancl-
ers and bankers who are to receive
a commission for their services. The
securities offered it was said, VIII
be British and French per cent gov
ernment bonds and the price to the
investor is to be par.
The amount OF the loan, 1t was re
ported is as yet undetermined, but
will be between $600,000,0o0 and $500,
100000 Whether munitions OF war
will be included within the scope of
the proposed credit as far as could be
learned last night, has not been de
cided.
The underwriting syndicate, 1t was
reported, will be the largest OF its kind
ever established in the United States
and probably will be open to nearly
all national banks, trust companies
and state banks that may care to par
ticipate While the amount of the
commission to be paid these banks
was not expressed in percentages, il
is understood that the profit will be a
small one, possibly one-half OF per
cent.
Elimination of the reported differ
ence in opinion between American fin
anciers and members of the Anglo
French commission over the manner
OF placing the loan apparently has re-
suited in a victory for the American
,financiers. Previous reports indicat-
ed that the commission felt that the
loan should be placed by subscription
and that there should be no under
writing syndicate.
The American conferees were re.
ported to favor adoption of plan
whereby Il syndicate would under
write the big issue and would receive
at least one-half of 1 per cent for its
services. This, it was reported. has
been the plan tentatively agreed to-
Efforts to elicit an expression of
the commissions views on this point
last night were futile The various
members of the delegation had been
spending the day out of town and it
was said at their hotel that some of
them were not expected to return un-
til today However, word that an
agreement had been tentatively reach
ed on this detail of the negotiations,
one OF the chief considered, came
from several other sources whose
ability to speak with authority cannot
be questioned.
So far as the plan has now develop
ed. ii Is the intention of the conferees
it is reported. to open their books to
virtually all banks, il not all. who
wish to participate, and to place the
bonds with any and all of them, pro-
German Or otherwise, at figure only
q shade better than that which the in.
yestor will have to pay, which, it was
said last night, will be par.
One vital issue yet remains for de.
cisionf whether the big sum realized
by the sale Of the bonds shall be
available for the payment for munit-
ions of war as well as wheat cotton
and other commodities Chief among
other minor details yet to be worked
out is the matter of Russias participa
ton Indications were last night
that munitions would be excluded
from the scope of the loan and that
another method would be adopted to
pay for them.