Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-09-14
PLAN TO BORROW
BILLION DOLLARS
Anglo French Commission Will
Offer Straight Government
Bonds Without Collateral.
SPEND EVERY CENT IN U. S.
Reputed Proposal Comes as Dis
tinct Shock to Financial
World.

NfN 1okk. september ID Ine
present plan Of the Anglo-French fnan-
cial commission. II was reported to-
night, is TO borrow $1,000. .ooo.o 900 in the
United States on straight British and
/ French government bonds without col
| lateral.
If this vast sum is obtained, it was
said. II is to be spent to the last cent
( in the United States in payment for
wheat. cotton. meat and other COM
modify shipments, including war mu-
nitions. II will. therefore, financial
authorities say. be classified as a COM
mercial loan.
Whether the neutrality of the United
States would be questioned In case the
bankers financing the loan accept
straight British and French govern
mcrt notes as security, has been given
serious consideration. 1t was said the
fnanciers familiar with the plan have
every reason to believe Washington
will not interfere.
DETAILS AS OUTLINED
SUBSTANTIALLY CORRECT
Members of the commission tonight
would not confirm these reports as to
their plans, but the scores of promi-
nent bankers from New York and other
chief cities who have visited the COM
mission here. were positive the details
as outlined were substantially correct
All that the commission cared TO pub
lish as authoritative was voiced by
Lord Reading. It's chairman. who re-
ceired newspaper men tonight for the
first time.
we are not in a position to make
statement at present" Lord Reading
I'D,
| conditions in New York and elsewhere
! in relation to American exchange on
London and Paris. We have received
very considerable number Of per-
sons. prominent bankers and other
gentlemen, who are interested in the
stability OF exchange.
The one thing that is very striking
about it is that everybody has agreed
as one would expect. in the great in:-
portancc TO bo attributed to regulating
the exchange SO rs to provide moro
| stable conditions than has been the
case recently.
The sudden and considerable drop
III the exchange naturally disturbs and
must disturb commercial relations be-
tween the countries-the United states
and Great Britain and France-inas-
much as 1t makes il so difficult to sec
he; and. moreover, because naturally
it makes such material difference in
the prices TO be received by the Amcri-
can and the prices to he paid by the
Englishman and Frenchman.
EMINENTLY DESIRABLE
TO SECURE STABILITY
There is a consensus of opinion that
II is emincntly desirable that some
| co Io l., -.
exchange can be secured You have
here in the states very large surplus of
foodstuffs and other material which
you want to export. We, on the other
hand. want TO import these goods. and
to the commercial man nothing is morS
difiicult than to arrange fixed prices
when there is the instability such as
we have had recently In exchange.
we cannot say more than that at
the present. but that generally reflects
our views on the situation"
Lord Reading added that the COM
mission had nothing 10 do with ad-
justment Of any legal questions be-
tween this country and Great Britain,
rs had been reported.
The outstanding feature OF the situa-
ton. which overshadowcd everything
else that has influenced foreign cx-
began. was the reported plan TO estab-
lish the hopcd-for credit without offer
ing collateral. Some nnancicrs who
had expected Great Britain and France
would not only give their notes but
would put up huge collateral COM
posed OF approved American securities
were startled by the proposal
Other financicrs were moro than
startled. The novelty of the plan is
said to have SO taken them by surprise
as to have required time for considera-
ton before they could express their
views
CREDIT FOR GENERATE
JUST AS GOOD AS GOLD
Still other fnancicrs were prepared
for the proposal They pointed out
that the entire credit Of both Great
Britain and France would be back OF
the bonds given for the loan-a credit
for generations regarded rs good as
gold
Generally, however. the reputcd plan
came as distinct shock TO the finan-
cial world. In all the talk that has
preceded tho commissions arrival here.
and In all the gossip that has followed
II. there has been only whisper, now
and then. that there would be an at
tempt to finance so great n loan with
out collateral. Financiers have even
gone so far ms to say what collateral
would he acceptable. Many have de-
clared nothing but approved American
securities would suffice
1t is to be n loan without collateral
or no loan at all-that is the present
plan Of the commission. at least so far
as the American fnanciers have been
able TO learn.
Here is the reported attitude of tho
commission as gathered by bankers
who have talked with the commits
sioners:
The credit of Great Britain and
France never has been questioned
Their bonds are the standard of world
investment They require only one
thing from the United States-muni-
tions Of war. True, they would like
to have grent many other things.