New Britain herald., 1915-09-18
DIVISION OF OPINION
 ON LOAN CONDITIONS
Financiers Hold Third Secret Ses- sion to Decide Points Of Difference
WILL IT COVER MUNITIONS?
American Lenders Said To Be Unde- cided Whether Borrowed Money Should Pay for War Munitions Possibility of Two Loans.

Possibility of Two Loans.
 New York, Sept 1S.-The parties to the negotiations looking to the creation of a mammoth credit loan here to Great Britain and France met in secret again today in an effort to adjust their differences over this question:
 Shall the big credit-billion dollars or otherwise-provide funds for the payment of munitions of war, as well & wheat, cotton and other com modities, or shall separate and dis tinct method be adopted in settle ing the bill for rifles, shrapnel war automobiles, aeroplanes, and other items coming under the meaning of the word munitions?
 The commission conducting nego- tiations on behalf of Great Britain and France are said to want the credit ta take care of munitions. The Ameri- can bankers-or what appears to be a majority of them-apparently do not. In their camps, however, there is marked division of opinion.
 Secured By Lien Bonds.
 Upon the following things, both parties are said to have reached an agreement:
 The life of the loan, which is to be five years, ten years, or from five to ten years, as may be deemed advis- able later; the form of the bonds, which are to be first lien (first mort gage) bonds on Great Britain and France, jointly; and that there shall Ee no collateral
 Points of Disagreement.
 On the other hand, there is an ap- rarent disagreement on these features of the proposed credit:
 The question of including muni- tjons of war; the matter of Russia's s participation, and the interest rate. The last named, it is said, however, $ virtually settled, as the commission has taken the positive stand that Great Britain and France will not pay more than a straight five per cent interest rate, bankers and investors to obtain the bonds on the same terms. If this be the case, there will be no underwriting syndicate, no big fees for placing the loan, and the subscription books will be open to all corners, pro-German or broadly.
 So-called pro-German financiers of New York, it is understood are will ling to subscribe literally to such a loan, if none of the money be spent in paying for munitions of war.
 Separate Credit for Munitions.
 A possible solution for the vexing munitions question is the suggestion that such shipments be paid for in gold, to be shipped here by Great Britain and France. It is a matter of general knowledge that the two na- tions are prepared to ship enough gold here to do this at present, al- though bankers here are of the be- lief that this is undesirable as it would tend toward a period of in- flation and speculation. Another sug- gestion is that separate credit be esta blished to provide funds solely for the payment of war munitions.
 As to the interest rate, most Ameri- can bankers seemed to have become reconciled, although in some quarters it is felt that the bankers handling the loan should be paid at least one half of one per cent. for their trouble.
 Russian Question.
 The Russian question, too is re- garded as minor. The point in this phase is that some American bankers believe they should deal directly with Russia and not through Great Britain. In this connection it is pointed out that when the war ends the United States will find in Russia great and receptive market, and that if nego- tiations over the loan are direct the way will have been paved toward closer commercial relations between the two nations at that time.
 Plans have been made by the com missioners to spend Sunday out of town.