Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1915-09-14
Government Remains Silent
on Negotiations Proceed
ing in New York. ..
COLLATERAL Is ABSENT
Hinted if American Bankers
Are Hesitant Borrowers
Can GO Elsewhere.

Washington. Sept 14-From high
Official quarters it was learned today
that the United States government
neither would approve nor disapprove
the loan which is being negotiated by
representatives of the European allies
in this country.
The position taken in the matter has
not been drawn to the attention OF
the government by the bankers, and
therefore they-are free to act Of their
own accord iBasmuch as there Is no
legal obstacle In the way Of the trans
action.
The projected loan is regarded by
high officials purely as a commercial
credit not differing from other com
merciaI transactions in war supplies
which are permitted under domestic
and International law.
New York. sept 1.-THE report that
the Anslo-French financial commits
sion contemplated borrowing a billion
dollars here without collateral Of any
sort and solely ON government notes
of Great Britain and France overshad-
owed all other topics in the financial
section today
Heretofore the opinion has prevailed
that Great Britain and France would
secure the proposed mammoth loan by
American securities, dollar for dol
lar or by some other acceptable form
OF collateral All calculations Of Amer
lean fpaG9ieps prior to the commits
ion5--aasEGgal ACC bad been based on
that assumption. The reported plan
of the commission providing for a
straight loan without collateral caused
the biggest sensation of the year in the
New York financial district,
il was the consensus OF opinion that
the commission would find It's task tre-
meudously more difficult than would be
the case were the proposed credit loan
secured by collateral OF American
bonds and stock as at hrst suggested.
Whether strict Interpretation Of
American neutrality would permit the
issue of straight commercial loan on
bonds of two of the allied warning ma
ti0us was topic of considerable con-
5ectuFe. The belief was that the ad-
ministratiou would not interfere. While
this opinion was almost unanimously
held no one could be found to stand
sponsor for a public announcement to
that effect nor was anyone apparently
willing TO say on what the opinion was
based
To Pay Export Bills.
In brief, the reported plan Of the
commission. SO far as it could be called
a plan in the present somewhat nebu-
lous nature OF the commissions plan
was as follows. The establishment
here of q mammoth loan. the proceeds
of which would pay an bills for ex-
ports to- Great Britain and France and
probably Russia.
TG fix the amount Of this loan cs
near billion dollars AS possible
The commission itself declined posi-
lively 10 discuss the report that this
was its plan,
In case the commission should fail
in it's plan it was said, wholesale cur
talment OF American exports would
ensue There Is nothing, it was said,
that Great Britain and France buy
here that they could not obtain else
here with the single exception of mn-
ntuons of war. These they were pre-
pared to pay for in gold if necessary.
The wheat they VIII need for the next
year. lt was said could be bought in
Canada, Argentina Australia, India
and Russia, should the Dardanelles be
forced by next March.
Cotton Is already held in large guam
titles he Great Britain, fl was said. and
by stinting the supply could be made
to last until the great fields Of Egypt,
now idle and untitled, could be made to
produce sufficient to take the place OF
what otherwise would be bought from
the southern states.
Meats from Argentine.
Meats would be bought 10 a large ex-
tent. IT, was said from Argentine and
manufactured goods from the remain
ing neutral nations Of Europe Amer
lean exports would dwindle 10 the
Ieanest figures Of the leanest years, it
was said.
Before the commission reached New
York the belief was held in some quar-
tiers here that Europe was virtually on
her knees 10 the United States, beg
ging for money and that American
bankers were consequently in post
ti0n to dictate the terms. Those who
held this view are said to have awak-
ened with somewhat of a shock to find
the commission entertained no such
belief, but maintain that instead of
being masters Of the situation, the
A veavf-. N her4lrara rs-nuIa he ~ rrvaa%
extent supplicants themselves for fa-