New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-02
RUSH TO SHARE
IN ALLIES'LOA
EXCEEDS HOPES
Subscriptions to Under
writing Syndicate Just
fly Closing Books.
WEST AND SOUTH
TO GET A CHANCE

Kuhn, Loeb & Co. Will Not Par
ticipate in Loan as a
Firm.
Subscriptions 10 the underwriting
syndicate which will guarantee the
notation Of the 100000 600 Anglo
French loan had reached n total yes
terdsy afternoon, according TO one OF
the syndicate managers, that would
have justified closing the books last
night. In all probability, however. II
will be several days before the syn
dictate is formally declared complete.
This is TO give the South, the West,
and the Far West ample time to come
into the loan flotation on equal terms
with the East
At the close Of business Thursday,
incomplete returns showed subscrip-
tions Of 1865. 900 900, with Chicago and
the Middle West generally not yet re-
porting. While there has been no
known change of attitude in those
quarters, il is believed that within the
next two or three days the enthusiasm
of the rest Of the country will prove
too strong TO be resisted.
II. p. Dawson, Of j. p. Morgan e. Co.,
said last night that the subscriptions
in New York were gratifying beyond
all expectation. New York, in the
short time the terms of the Offering
have been known, has run far ahead OF
what was predicted.
The statement by Jacob II. Schif,
yesterday. to the effect that Kuhn.
Loeb & Co., as a firm, would not par
ticipate in the loan, apparently served
in no way as damper upon en-
thusasm.
Schif Statement Not Surprise.
There was no surprise in it, and the
conviction remains that Otto II. Kahn
and Mortimer l.. Schif will be large
investors in their individual capacities.
One well-known banker, commenting
on Mr.. Schif's declaration, said that
If it had any effect at all upon in
yestors it would be in favor OF the
loan. "By innuendo, at least" he said,
"the loan is praised The inference
is that if Russia were not to benefit IN
some way by the credit, Kuhn, Loeb g.
Co. would be found among the par
Elephants"
Here is Mr.. Schiff's formal explana-
tlOn OF tUc DOSlllOH VI MS MN.
with differing sympathles on the
part of the individual members of our
firm, we decided at the outbreak of the
war to refrain from financing public
loans for any of the governments OF the
belligerent nations.
Concerning the present Anglo
French loan, we have felt that as Amer
lean bankers we should assist in what
we believe will result in promoting the
interest of the country's commerce and
industries. but il not having been found
practicable to give any actual assur-
ances that the government OF Russia
against whose inhumanity the members
OF our firm have ever raised their
voices-is not to derive benefit from
the funds that are TO be raised through
the Anglo-French loan, | have felt con-
strained to advise my firm TO refrain
from becoming participants IN the
! loan"
Beyond the addition OF the Bank of
America to the number of syndicate
.anagers in New York, which brings
the number up to an even sixty, there
were no notable changes yesterday in
/ the situation. II was tentatively de-
cided. however, that subscriptions
would be payable in three instalments,
/ the first two, of % per cent each, to be
made on October IS and November 10,
and the last, OF so per cent, to be made
/ on December 10.
| Whether or not the establishment of
/ the s500,000,00 credit will suffice to
stabilize the exchange market until the
end of the war cannot yet be deter
] mined, said a banker yesterday. The
factor that throws out all calculations
/ Is the probable duration Of the war.
I'm all likelihood" he said, little at
| tempt will be made to raise the ex-
change rate; the purpose of the loan is
TO keep il from declining. If such
! few weeks ago, when demand sterling
/ fell to $50, and exchange can be kept
somewhere around 4.73 or 4.75, | think
the Allies will be satisfied"
The position of small investors who
seek TO benefit by participating in the
| loan as underwriters has not yet been
made clear. In several cases yesterday
banks refused to handle applications of
would-be subscribers where the amount
sought was less than $4,000. In other
| instances, however, subscriptions OF as
/ low as sl00-for one bond-vere &C
/ cepted freely.
Curb Market Rumors.
There were unofficial reports on the
/ curb market of sales of the bonds
/ when, as and if issued" at 97s4 and SO.
/ These sales, which were said to aggre-
gate $4,000, did not appear, however,
I on the sheets Of the official curb re-
porters.
} Statements from bankers and bust
ness men indorsing the loan appeared
/ in many quarters yesterday.
I Frank A. Anderson, president OF the
Bank of California, one OF the largest
! institutions on the Pacific Coast, tele-
/ graphed to a bank here:
"The loan to France and Great Brit
ain is, in my opinion, good from credit
standpoint and is in the best interest
of the United States, as it will aid in
b financing the export OF our surplus
products. Our warehouses are choked
with surplus grain and food products
generally, which will break down the
prices received by our growers unless
/ shipped out of the country.
Our mills and manufacturing insti-
/ tutions are employing thousands, who
will necessarily be thrown out OF en-
ployment unless means can be found TO
| finance what they export.
"In the last analysis, the proceeds OF
/ this loan will be used to liquldate
loans which have been extended in the
past TO clients Of our banks, and the
possession of the English and French
notes will in the future be a protec-
tion to our gold supply"
Colonel Samuel 7. Colt, president OF
the United States Rubber Company,
said about the loan:
81 thoroughly believe that the bene-
fetal effect will be very pronounced: |
am absolutely confident that II this
loan had not been successfully nego-
.;ataJ n. danrassino effect on export