The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-09-22
DISAGREE ON MUNITIONS,
OPPOSED no LEND.
ING MONEY TO PAY FOR
ARMS.
Want Funds from Big Loan to Go for
FoOdstuffs, Cotton and Manufac-
lures, While Commission Wants to
Buy Munitions as Well

New York, Sept. 1.-THE Anglo
French financial commissioners seek
ing to establish a mammoth credit
loan here and American financiers
who expect to supply the money were
reported to be at odds tonight over
the question Of including war muni-
tions among exports to be paid for
by proceeds of the loan.
The commission and the bankers
have agreed on several details, but on
this major question. 1t was said, the
views are diametrically opposed.
There also is an apparent split on the
question in the ranks of the Ameri-
can financiers, it was said tonight.
The commissions attitude Is said to
be that the big credit. whether a bill
lion dollars or less. should provide
funds for all exports and that muni-
tions should be included. Some
American bankers think so. too, but
a great many are said to hold that
the loan should cover only such ex-
ports as wheat, cotton and manufac-
tured products and that another
method must be found to pay for
munitions. even jf il involves ship
ment Of huge stocks of gold.
The situation has not reached a
deadlock. or anything approaching it.
but the line of demarcation is clear
and we'll defined.
A minor point Of variance between
the commission and some American
bankers is the role that Russia Is to
play In participation Of the loan.
Some bankers want to deal direct
with that country. 1t Isl reported. A
third point of disagreement concerns
the rate OF interest.
II the commissions callers have
correctly reflected it's views in their
talks with newspaper men, Great
Britain and France insist that the
proposed bonds shall not pay more
than per cent. and that there shall
be no underwriting Of the issue.
To the underwriting proposal, it is
understood, American bankers gen.
orally have been won over Here and
there. however. q voice Of dissent is
heard.
Instead OF using underwriting 1t
was thought tonight the issue would
be placed through a syndicate which
would subscribe to the loan and that
the syndicate would be open to all
comers on equal terms.
Thus the smallest OF the approxi-
mately $4,000 national and State
banks and trust companies through
out the United States would get ex-
actly the saTe terms as the largest
or as any great private banking firm.
III this programme be followed
there are indications that the socalled
pro-German financiers of New York
would for the most part subscribe
millions toward the project, always
with the condition that the funds be
unavailable for munitions of war. If
munitions Of war are included 1t
was asserted. there is not a socalled
pro-German banking house in New
York city that will subscribe.
Other details of the proposed loan
on which the negotiating parties are
said to have agreed are:
The terms-the loan Is to run for
five years. or 10 years, or serially
from five to 10 years, as may be
deemed expedient after the adjust
ment OF other details.
The form--the loan Is to be granted
upon straight British and French
government bonds. payable in dollars.
These bonds are, I'm effect TO be n first
mortgage on Great Britain and
France and consequently are to take
priority over all other outstanding
bond issues.
The collateral-there is to be none.
The amount OF the loan, there is a
general belief can be adjusted ami
cabiy after final decision is reached
as to- the inclusion of war munitions.
Ffnanciers said tonight that while the
irst tentative proposals have been to
lend the commission half billion
dollars, there was reason to believe
this sum might be exceeded.
The commission. said a banker to-
night. will not be satisfied with n half
Dillon dollars. 1t wants q round bill
lion. But II munitions of war be ex-
ciuoed there are ir cations that two
hundred to three hun 1red million will
Dc Knocked off the yriginal billion
asked for.