Norwich bulletin., 1915-09-24
Split on Amount
of Big War Loan
AMERICANS PLACE MAXIMUM
SUM AT ssoo.ooo,ooo
ALLIES WANT A BILLION
Interest Rate of 5 Per Cent. Has Been
Agreed Upon-consummation Not
Probable Inside eta Week

New York. Sept 23.-Troublesome
details have yet to be adjusted and
minor matters smoothed out before
Lord Reading. representing Great Bri-
tain and France. and J. p. Morgan
and his associates. representing the
agreement -cCnsummating the long ne
go1ations looking to the establishment
OF big Angio-French credit loan here
s5oo.ooo,ooo the Maximum.
Not the least Of these details, II de-
veloped tonight, is the size Of the
loan The representatives Of Great
Britain and France. IL was said on
good authority. have been told the
maximum amount they can get IS
$500. .oOo. 900. In reply. 1t IS reported,
they have told the American bankers
that they need more and that more
viii be expected.
Want a Billion.
Sir Edward Holden, representing
the joint stock banks of London, which
stand high among the financial bull
warl<s Of Britain. one OF the dominat-
ing figures of the commission, was re-
ported TO have stood grmly on the
ground that the commissions need was
for more than half a billion dollars
and that the maximum interest rate
would not exceed Ave per cent When
the commission first reached New
York. It let II be known that IL was
seeking a billion dollars.
ParIeyins Over Interest.
II was reported today that the com
mission had sought to raise a billion
dollars on joint Anglo French govern
ment notes. without collateral. bearing
interest at 1-2 per cent and that IL
receded from its position in the face
OF repeated assurances that IL would
fail in its mission unless Il could Of
fer better terms. A five per cent rate
was then reluctantly offered, IL was
said. with the positive assurance that
this rate would not be exceeded The
demand was still for a billion dollars
Within the past week. an American
banker said tonight the commission
had been compelled. to recsde from this
position also. as TO the amount, upon
emphatic assertions OF american hnan-
ciers that II was unlikely that a BILL
| lion dollar loan could be fioated az that
interest rate --,---ss-7--s - --.
Commission Dominated Situation.
Throughout the period OF negotia-
tions, until a day or so ago, II was
said on good authority. the commits
sion had dominated the situation,
pointing out to American financiers
| that the need for the establishment
Of the loan was greater to the United
Stntes than to either Great Britain or
NEuAAt a lew american Oauk-
ers. IL was said tonight, have not
shared this view, although all were in
accord as to the desirability OF estab-
fishing the credit II sufficiently liberal
terms could be obtained.
Split Over Amount Of Loan.
Earlier in the week the commits
sion and its American conferees came
very near to an agreement on all de-
/ tails except the amount Of the loan.
IT was said Upon this point the COM
mission was reported to have been in
sistent that the sum should approach
500. 900. 600; and the American bank
ers were said to have been equally
4 firm in their refusal TO make the
amount more than $500, ,O00. 900. When
the bargainers parted last Tuesday
night II was with the mutual expecta-
ton that this point would be adjusted
| within a few hours and that an
nouncement OF the success OF the ne
gotiations would be issued Wednes-
/ day or today.
They failed to agree, apparently,
i and there was no announcement To-
i night IL was said that there might be
i an announcement within a few days
/ or that possibly a week would elapse
before an announcement would be is
| sued