New-York tribune., 1915-03-27
NJ. Morgan's Mission.


Brisay. Mr.. Morgan is expected TO do
these things:
Arrange for the payment of Europe's
debt 10 the United States in American
securties rather than in gold, which is
10. wanted now.
Restore exchange 10 a more nearly
normal basis. The present abnormal
rate IN favor Of the United States
tends 70 restrict business with coun-
tres at peace as well as with those at
war.
To arrange for further credits to the
Allies and prevent confusion later by
Practically limiting the amount OF
credit 10 be extended at this time at
rate Of interest TO be fixed largely by
Europc's needs and New YOrk's Wiling
hess 10 lend.
The first Of these credits will, II was
said in Wall Street yesterday, be ar
ranged for the benefit Of the French
government. IL will not, as at present
understood, exceed S50,00O,OOO, ana
may be as little as S25,0OO,OOO. Inc
interest rate has not been made pun
lie. but j. is higher than that at when
earlier credits were arranged.
This and progress in arranging loans
70 England. and perhaps Russia. or
througl England 10 Russia was
thought 20 be reflected in the cessation
Of imports Of gold from Ottawa. None
was engaged there yesterday for snip
ment here. and the establishment OF
credits will automatically stop further
shipments.
As il is now understood in the Street
the total amount Of credits TO be ar
ranged will be about S500,000,00O. All
the great New York banking houses
sill Be in the syndicate that will have
the placing Of the credits, which Will
be apportioned among the large lend
ers Of money throughout the country.
The public will not be allowed 70 come
In. except indirectly through the big
Insurance companies and other hdu-
ciary institutions. Later, when II is
necessary 70 fund this debt, as it prob
sbly win be, the public will have
chance TO come in.
Mr. Morgan went TO Europe as some
thing more than the head of the great
house which bears his fathers name:
He Is. in fact, the representative OF
the banking interests Of America
financial ambassador, as It were, as
much so ss was Sir George Palsh,
financial adviser OF the British Treas
ury, when he came here last summer.
The only difference Of Importance is
that conditions arc reversed. men
exchange on London was at prohIo
tive rate and this country was threat
ened with a serious loss of gold. Now
the boot is on the other foot.
To Give Points to Allies.
Sir George Paish came here to tell
American bankers how 70 get relief
Mr.. Morgan. at the invitation Of the
financial advisers of the British Crown,
goes TO London TO tell the English and
their allies what they must do.
Before Mr. Morgan sailed there was
q definite understanding with all IN
tereSts here and in Washington. AS
the envoy Of the bankers there are no
conditions IN Mr.. Morgan's commission.
Nor has Washington imposed any
restrictions beyond those placed carh-
er IN the war, when il was agreed, at
lte request Of the President, that no
American banking house should place
loans here for the powers at war.
To the layman there is little differ
enee between placing a loan and ex-
'enGng a credit. The difference, how
ever, is great, though the immediate
eject be the same. A loan in the
banking sense is a liquidated debit
that is to say, n debt represented by
the issuance Of securities against gold
Or It's equivalent, these securities hav..
ing stated period to run, and issued
IN such denominations as TO be readily
transferable.
A credit. on the other hand, means
hat a power is enabled to get goods
or money-in this case il is merchan-
dise-for d limited period, IN bulk
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