The Birmingham age-herald., 1915-09-18
Anglo-French Financiers In- sist That Loan Shall Be Used to Pay for Ammuni-
 tion Bought in America
PRO-GERMAN ELEMENT LEADS OPPOSITION TO THE MUNITION PLAN
Many Details of Proposition
 Thrashed Out and Finan- ciers May Soon Get To- gether on Agreeable Plan

New York, September 17.--The Anglo French financial commissioners seeking to establish a mammoth credit loan here, and American inanciers who expect to supply the money. were reported to be at | odds tonight over the question of includ- ing war munitions among exports to be paid for by proceeds of the loan. The commission and the bankers have agreed on several details but on this major question, it was said their views are diametrically opposed. There also is an apparent split on the question in the ranks of the American inanciers, it was said tonight
 The commissions attitude is said to ne that the big credit, whether q 00o. .Ooo, 600 or less, should provide funds for all exports and that munitions certainly should be included. Some American bankers think so, too; but great many are said to be of the opinion that the loans should cover only such exports as wheat, cot
 
 another method must be found to pay for munitions. even if 1t involves ship ment of huge stocks of gold.
 The situation has not reached a dead lock. or anything approaching 1t, but the line of demarcation is clear and wei defined.
 A minor point of variance between tn commission and some American banker IS the role that Russia Is to play in par ueipstion of tho loan. Some banker want to deal direct with that countr, Iit Is reported. A third point of disagree ment concerns the rate of interest.
 Insist on Per Cent
 If the commission's callers have COT rectly reflected it's views In their talk with newspaper men. Great Britain an I, France insist that the proposed bonds shall not pay more than 5 per cent. an that there shall be no underwriting a the same.
 To the underwriting proposal, 1t is ur derstood, American bankers generalf have been won over Here and there however, voice of dissent Is heard
 Instead of using underwriters 1t was thought tonight the Issue would be placer through syndicate which would sub scribe to the loan and that subscription would be open to all corners on equal terms.
 mus the smallest of the approximate S,OO national and state banks and trust companies throughout the United States would get exactly the same terms as the iarges' or as any great private ank- Ing firm.
 If this programme be followed, there are indications that the so-called pro- German financiers of New York would Tor the most part. subscribe millions to- ward the project, always with the condi- ton that the funds be unavailable for munitions of war. If munitions of war are included 1t was asserted. there is not so-called pro-German banking house in New York city that will subscribe.
 Five and Ten Year Terms
 Other details of the proposed loan on which the negotiating parties are said to have agreed are:
 The term; The loan Is to run for five years or 10 years. or serially from five to 10 years, as may be deemed expedient after the adjustment of other details
 The form: The loan is to be granted upon straight British and French govern ment bonds. payable in dollars. These bonds are, in effect, to be a first mort gage on Great Britain and France and are to take priority over all other outstanding bond issues
 The collateral: There is to be none.
 There has been no agreement as to the amount of the loan, but this. there Is a general belief. can be adjusted easily aft CT final decision Is reached as to the inclusion of war munitions. Financiers said tonight that while the first tenta- tive proposal had been to lend the com mission half billion dollars. there was reason to believe this sum might be ex- ceeded
 The commission, said banker to- night, will not be satisfied with a half billion dollars. It wants round bil- lion. But if munitions of war be ex- cluded there are indications that s2Oo, 900 0OO to $3o0.000,000 will be knocked off tho original billion asked for.
 The whole matter may be all finished within few days" one prominent banker said, Tor 1t will be all off, The inference was that it would be "ail off as to the particular proposals now on the boards and that other plans for the credit would have to be esta blished. There was no inference that the commissions labors would be ended. in this event. with fail- ure.
 Apparently the men who should know think the situation Is encouraging. The barometer of their sentiments was found today in the strengthening tone of the foreign exchange market.
 IA