The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-21
CASH OF Big LOAN
NOT TO GO ABROAD
Will Stay in Banks Here,
Credit Being Provided
in Instalments.
HITCH OVER MUNITIONS
AnglO-French Commissioners
Fear Bar to Buying With
Restriction.

Although the questions upon which the
amount OF the Anglo-French credit de-
pends are not yet entirely settled, the
report was current In the financial dis
trict yesterday that after to-morrow's
meeting between the Anglo French COM
missioners and the bankers here an
nouncement might be made OF the COM
pletion VI the arrangement. The meet.
Ing OF yesterday appeared TO be most
satisfactory, judging from reports. More
progress is expected to-day.
The one point upon which there Is
still debate is the matter OF munitions.
The principle upon which Lord Read
ing, Sir Edward Holden. Sir H. Babbing-
Honberg and Ernst Mallet are standing
Is that they want sufficient credit estab-
lished to stabilize foreign exchange be-
tween the United States and England
and France They hold that once this
is established II is OF no particular con-
Germ TO the commercial world how the
credit Is utilized. as hing as the stability
Is maintained. They have asked for a
accomplish this object.
Position of Bankers.
The American position il that ex-
change can be kept at a safe figure,
not necessarily Sass. by the establish
ment OF credit which will permit Eng
land and France to take the normal
American exports They are estimating
how much this will require, and their
offers are based on normal exports. the
understanding being that after the |, an
II will be the duty of the managers OF
the credit both American and foreign.
to see TO II that exchange Is maintained.
1t was said yesterday by prominent
fnancier that II would not concern the
Americans II. after they give the credit.
the French and English employed II di-
re'rly in the purchase OF munitions or
anything else, as long as they supplied
the gold TO keep things normal. There
would be no difference II they paid for
wheat or munitions in gold II both were
paid for.
An important development Of the day
was ~,ported In Wall Street yesterday
afternoon II was said that the great
underwriting syndicate would not be
asked TO raise the $500, ,0O0. .00o or $780,
600, zoe. or whatever the sum may be. at
oh' ~ ~
furnish their pro rata in instruments as
the money IL required. The result OF
this will be that no unprecedented sum
OF nGney will at any time be tied up
The assessments will be graded ac-
cording TO the need and the need will b.
determined by the amount necessary "a
maintain foreign exchange at a safe
figure As this does not mean S4,S6 for
sterling. the price. 1t is thought, will Ia
held just above that which causes gold
to be shipped to this country In thes,
days II is around SiNO.
II was thought In some quarters yes
terday that, following the usual custom
as in the case OF city bonds. there might
BE- four instalments of the loan. How
ever, in other quarters II was thought
that there may he many more, perhap p'
monthly or bi-monthly.
same Cash Could He scd Again
In this way practically tn" game sun
could he used over ard over AGAIN I,
complete the loan, for as the money II
not to leave the country II Will speedily
nnd it's way back into the banks anc
into the possession OF the investors.
Any talk that the members of IN,
Anglo French commission are conferrin!
, independents with the manufactures o
munitions. working out a different scheme
was pooh -pouhed yesterday. The TIVE
countries still have the gold to pay fo
/ those supplies and will spend IT, TIN
only point the commissioners wish I,
make is: II exchange is stable VIII a
difference will 1t make II England am
I France pay for the war supplies out o
/ one pocket or the other
This was explained concretely yesier
day ny a banker,
ha h..