The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-04
GREAT BRITISH LOAN
NEAR COMPLETION
Success Of Plan for 500. OOO,.
900 or $500. OOO.O 900 Credit
Expected Soon.
OPPOSERS IN ENGLAND

The negotiations for the placing ~
and 5000. 900, 900 here, II is believed
may be closed at any time. A banker
in the so-calied Morgan group Of
banks 10 authority for the statement
that the chief purpose Of Henry p.
Dawson ~ ]. r. Morgan & Co. IN go,nR
to London a few weeks ago was to SIS.
cuss the details of such "A scheme OF
financing with prominent British bank
ers and officials OF the British Treas.
ury. This Is the first definite admits.
sion made by any banker as 10 Mr..
Davison's real mission abroad.
Although the negotiations for thu
loan may be completes soon. Il was
said yesterday in banking circles that
the actual placing Of the loan here
might be delayed for some time. II
70 consider In the placing Of such Q
loan. II was animated that the neeo.
t~iations were to a certain extent beinl
impeded by many of the minor bankers
in England. who do not see the reces-
sity for the placing OF n British loan
here IN as broad n light as do ne
leaders Of finance In the United States
and England.
The interest rate Of the loan, I, /.
understood. is the subject OF consider
able discussion. The date OF maturity
II also a debated question. In sorne
circles there Is a feeling that the loan
ought 70 extend over a ten year period.
while other bankers insist that "A three
year loan would be more popular. Some
banking interests contend that the loan
should be made along tho line Of the
German debenture loans, which have
no Definite period OF maturity. Such
. scheme would make the British war
bonds hoated here. In a way. not un-
like some OF h United States Govem-
ment's bonds. which had no stipulated
maturity until tho Federal reserve at
provided for their maturity within 4
certain number Of years.
hat the loan will bear Interest Ct
the rate Of s per cent, or higher 10
said to be practically certain. II u
also practically certain that he bAn
will in nowise be a part OF the new
8 5000. 600. 900 British war loan and Will
be free from all British income taxa.
Tho loan will also be negotiable only
in this country and will be payable in
dollars.
A banker raid yesterday that ths
loan must be a popular one to succeed.
as the banks arc already we'll engrossed
with banking arrangements and cred
It's. This meant that the big bond ana
Investment houses would dispose Of the
greater par of the issue.
Americans have never shown much
interest In foreign ioans. II wae recalled
yesterday that one or two European
loans brought out here ~recently aid rot
meet with a very satisfactory reception.
II was believed. however, that a British
o would meet more assured SUCCESS
han any other foreign loan. owing 10
England'e strong financial position and
the fact that the interests Of the United
States and Great Britain are 30 closely
allied.
Exchange rates wore strong yesterday
and fractional advances were registered.
Demand sterling closed at %.76a. with
cables al AZ b-l8. THIS compares w7rh
<.78 5-ls FOR demand and <77k FOR os-
bles on Thursday. Francs closed slightly
lower at $3.50 for checks and 6.e5 for
cables, against q previous close OF 5sb
for checks and 6,6<L for cables, Marks
were higher AZ Sla for sight dHat's
and 81 7-l6 for cables, as counpa-ei win
81 b-l6 for checks and 81 7-l6 for CO
bles on Thursday. Lire. which have been
advancing from their previous low rec
ord prices, Jumped from 6,l2. Thurs
days closing price, 20 COS yesterday
Austrian krone were unchanged al
1910.