The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-09-03
Barnard AT HOME;
GIVES US. WARNING
Banker Says This Country Will
Suffer Financially From
Wars Waste.
ADVISES A BRITISH LOAN

o,o r. Barnard. president OF the
vsU York Trust Company. arrived yes
,,raay from England on the American
liver 81. Paul with the opinion that all
,Me financial difficulties between Great
ur,ain and his country owing to the
,,r could and ought TO be settled by
England placing a large loan here and
eating away some of the surplus gold
which this country has on hand.
The New York Trust Company Is
trustee for the ~ per cent. mortgages
,,sn,d on the International Mercantile
Marine and Mr.. Barnard went abroad
IN the interests of the foreign bond
bolders. lie prophesied that the war
uould las. at least another year and
ina, i'm two years the United States
would he suffering. In common with the
commercial world. from the destruction
OF capital which II is now causing.
The war Won't end until the last of
next wear At the earliest" he said. TT
hasn't rally started yet. So far Ger
MANY shows i~nexhaustible
and the Allies will not quit. The situa-
ton in England IL a queer n and I
mink is due TO the fact that England Is
moi a unit but n system of classes. The
well TO do people and the farmers are
doing all the fighting now. especially the
farmers. The laboring class is slow TO
enlist.
THE laboring man in England seems
10 have the feeling that may be ex-
pressed as King or Kaiser. I'll get my
union wages anyhow
The French people think the United
States lacks backbone that we have
shown ourselves spineless In not having
broken relations with Germany as a re-
suit of her treatment. England is CRATE
ful for our ammunitions, but she feels
that she Is paying us, and paying us
we'll. for all that we are doing for her.
AS to the financial trouble. II ought
10 be easily settled. We've got more
rold in the United States than we have
ANY need for. To balance things, Great
Britain ought to place a loan here. I
believe that in two years the United
States will he involved In the universal
financial trouble"
Concerning the reorganization Of
The International Mercantile Marine.
the business which took him abroad.
Mr.. Barnard said hat the plan as out
lined was certain to go through despite
the opposition of minority stockholders.
"The English and Dutch bondholders."
he said, approve Of the plan and re-
gard II as fair. The deposits abroad
have been large. The total of the AZ
per cent. bonds deposited is now s46.-
$4,000 out of the sJ:,5s4,oo0 outstand-
Ing.
I'VE are ready to discuss the re-
organization plan with the protesting
stockholders at any time they wish and
to present the reasons for h necessity
Of the assessment on the stock"
Mr.. Barnard said that one reason for
the assessment Of $3.50 from which the
protesting stockholders believe they
should be relieved Is that ar assessment
Is required after the precedent set in
the Northern Securities case. II the new
company is to be protected from the
demands of the hondholders for full
payment of their bonds. Unless new Sc
o~urities are issued and sold to stock
holders, the company would be liable
for the claims of old bondholders. When
Il was suggested that the assessment
might be loweded from $3.50 to 81,
Mr.. Barnard said that it was a sug-
gestion hat could he considered.
1t is expected that representatives Of
the protesting stockholders will confer
win Mr.. Barnard shortly.