New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-22
Americans May Extend
$500, 100000 to Stabilize
Exchange.
TRADE BIG FACTOR IN
ADJUSTING AMOUNT
RuSsia'S Share Still In Doubt
kuhn-Loeb May Act to Assist
Allies Credit.

pan 70 cStabllSh credit of upward of
. >50O,OoO,000 in this country for Great
Britain and France has been consum-
mated, may be confidently expected
within few days probably within the
week. More progress was made ycster-
day, 1t was learned from bankers con-
eerned in the negotiations, than on any
other day since the Anglo-French inan-
cial mission. headed by L. d Reading,
arrived in New York, ten days ago.
The total amount Of the notes TO be
issued under the joint credit of Great
Britain and France is still matter Of
discussion, but in TO event will it ex-
coed 100000 900. and it is not likely
to go below $500 100000. There is no
longer any question about how much
the American bankers are willing TO
grant The point Of difference IS bow
much will reasonably be required to
achieve that stabilizing of exchange,
which is the object of all the nego-
tiators.
To arrive at conclusions IN this re-
card the bankers on both sides have
had 20 study the international trade
returns and estimate to what extent
the balance OF trade between the Allied
countries and the United States will
run in the months 10 come. SO many
factors enter into consideration in cal
culat.ons OF this sort that there have
been inevitable differences of opinion
about the amount needed TO offset the
debts that will accumulate against
Great Britain and France while the war
continues. and possibly for some time
after the war is ended. For this rea-
son il has not yet been possible to fix
upon a definite figure for the loan.
z There is still a good deal of discus
sion about what advantage the pre-
ferred subscriber the banking insti-
tutions that will vend the notes shall
have over ordinary investors. The
general principle has been accepted by
the American bankers, however, that
the loan hotaton shall not be pri-
marily a money making operation
Bankers Seek Protection.
The Morgan interests have taken the
attitude all along that the banking IN
solutions should have no preference
over ordinary investors, except that as
agents for the distribution Of the notes
they should receive A discount from the
general Offering price Of enough 10
cover their expenses. Other bankers,
however. who do not fully share their
optimism over the probable reception
of the loan. are holding out for dis
count that will insure them against loss
in case thew have 10 convert their tax
incs Of the notes into cash on de-
cl'rinC market
Whatever the eventual discount is to
The primary subscribers, II has been
settled definitely that the offering price
20 the general public will be par, and
that the notes will bear interest at D
per cent. The term of the notes is to
be five wears. at the end of which they
NAV be converted at par into twenty
wear securities, bearing interest at the
rate Of Az per cent.
BEFORE that time the war Will be
ended. in the expectation Of the nego-
tiators. and the belief was confidently
EXPRESSED Yesterday that the CONVEX
yion privilege would be deemed an at
tractive feature by investors.
The matter Of munitions purchase
has AZ no time been under discussion
since the first Of last week. II is gen
orally recognized that that Will auto
matically adjust itself with the staoIlII,,
Ug of exchange. Nhether RUSSIA VII
derive anv advantage from the loan IS
e0otber question that is said 70 be eX-
ertiug no influence on the negotiations
and for a similar reason.
At the Morgan Office yesterday there
,res q notable stream of important VS.
itors. which led. TO a report In wall
| Street that a meeting of great moment
, was occurring and that an announce
cont relative to the loan was imminent.
| A rumor arose and spread rapidly that
| a statement would be forthcoming to-
| dav that the plan had been consum-
| mated A..
! callers He saw Mr.. Morgan IN the
| afternoon, but his stay was priel
. hardly five minutes. Sir Edward Hol-
| den Of the Anglo-French mission. who
/ went 70 confer with the bankers after
/ Inc luncheon at the Bankers Club, re-
/ NAMED much longer. Neither would
| discuss the object OF his visit.
Luncheon to Visitors.
! Aronq the other prominent callers
| IN the course of the day were Henry
/ {. Flick, george r DahVi, -
the board of directors OF the Flrst Ma
| tional Bank. and his son. George r
| Baker. ir. vicc-presdent OF the same
! INSTITUTION: Edward T. Stotesbury,
/ sorior member of the Morgan firm and
head of the Philadelphia house; Robert
Winsor. Of Kidder. Peabody Co, and
Alexander J. Hemphill and Charles II.
I Sabin. chairman and president, respec-
! lively. of the Guaranty Trust Company
At the Bankers Club earlier In the
afternoon a luncheon was given IN
honor of the Anglo-French mission by
,be officers and governors of the CLUB
All Tho members of the mission were.
rraeont Baron Reading, Lord Chlef
fnstice of England, the chairman; Slr
Fdward Hopknson Holden, Sir Henry
pobircton Smith and Basil ?. Biackett
10 british representatives, and Octave
uoooberg and Ernest Mallet, the French
A. the luncheon comment was mace
Cot that Mortimer l.. Schit was
iced next 10 Basil p. Blackett, tne
sgecretary Of the mission, and that theIi
oo,,,orsstion was apparently OF mos'
5;ol character. Particular atteh'lon
w lied 10 the circumstance because
elements made that Kuhn, LoeD q
% bad decided not 10 participate ~
- - These statements were later
ile - ~ he unfounded. As matter
~ record. Otto II. Kahn, OF the Daa~
mo firm. has been in frequent con-
ence with Lord Reading wi'hih INC '"''
few days.