The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-07
BIG WAR LOAN MAY
Be FLOATED HERE
Banks Hope to Share in Huge
Joint Financing of the
Allies.
EXPECT NO OPPOSITION

There Is n growing feeling in conser-
vatlve banking circles that when the
great Joint loan of the three allies, Eng
/ land, France and Russia, Is brought out
/ IN London, Paris and Petrosrad a
considerable portion OF It may be offered
here The amount OF this new loan
has not yet been announced by the Gov
crnments of the three above nations.
but n r. certain that It will be the most
stupendous single piece OF war financing
ever put through.
Tho magnitude Of the loan will he
I 10 which all three Of the ailies are be-
ing put to maintain their hugo armies
/ IN tho field. 20 provide for the millions
which Lord Kitchener intends to put
into tho field IN the spring and 10
/ strengthen Russian credit
Stops already have been taken by No
| financial representatives OF tho allies
| looking 70 the issuance OF this loan. tho
! first definite move being me conference
| Of David Lloyd George. the British
! Chancellor Of tho Exchequer. and z.
Bark, the Russian Minister OF Finance,
with the French Minister Of Finance In
took place was confirmed by an official
Announcement made In Paris on Feb
ruIry o, which gave some details OF the
plan which the financial representatives
of the three countries had in mind
The official report % the conference
said in part. that tho three Powers had
decided 20 unite her financial resources
as we'll a. their military resources and
Nlt with that Idea In mind they had
decided to propose to their respective
Government that they share equally In
the advances made or to he made TO the
countries which are now fighting with
them. or which might be disposed to
take tho field shortly In the common
cause. The amount of the advances Is
70 he covered both by the special re
sources OF tho three Powers and by the
issue OF n loan in the name Of all three
~ the proper time
II also made the significant state
mert that the Ministers had decided to
make In concert all purchases for their
countries from neutral nations and that
| III" necessary steps had already been
taken TO restore as far as possible. tho
parity Of exchange between Russia and
tho other allies
The feeling In banking circles hero is
| that such a loan, backed by the credit
~ three such nations ~ England,
France and Russia, would he the safest
sort of an Investment and that even at
the rumored rate OF per cent should
mect with favorable reception in this
country.
Conservative bankers do not believe
that the offerings OF such loan in New
York would be frowned upon by the
Administration. provided that the offer
ing In this country was made with the
specification that the proceeds Of the
bonds or notes sold here should re-
main In this country and he devoted 10
tho purchase OF goods In the United
States. II In felt that tho Administra-
| ton would not oonstrue such q transact
/ ton rs being IN tho common interpreta-
! 'lcr ~ ~. tA-vr ''var loan" and that
In view OF the possibilities OF profit to
American commerce, agriculture, &r
would hesitate 10 condemn IL The de-
/ cis'on of the Ministers OF Finance TO
I mako their purchases IN concert Of 'ne,i-
/ trnl nations would mean wonderful
| opportunity for this country, a. the
| United states Is practically the only ma
{ ton which If in position 70 supply tho
/ Allies with everything they want
/ Such loan. bankers believe, would
/ be entirely different from the $780,
/ 900 900 French war loan which was
/ frowncd upon by the Administration at
/ the opening OF tho war. Such a loan
/ would have meant a shipment OF gold
| TO France against tho bonds sold here
ana might have been construed az n
, violation OF our neutrality Also this
country. IN view OF its own unsettled
financial position, WIS not In a position
10 export more gold IN view OF the
/ moral erect II might have on persons
/ who might not understand the real
/ meaning OF the transaction.
AZ the proposed transaction - now
viewed by bankers II would in no way
/ be more OF war loan" than are the
/ extensions OF credit which have been af-
forded 10 Russia recently and to
France early In September Such a deal
/ would az the end OF tho war put the
/ United States in a very strong position
/ abroad. as whatever debts now remain
/ against US in any one OF the Allies
. countries, both on trade and security
dealings, probably would be cancelled.
An enormous trade balance IN our favor
also doubtless would exist. The work.
| ing out of tho transaction would be 20
/ make all the Allies our debtors and
/ enable our merchants to do business on
/ the most favorable basis
In view OF these exceptional oppor-
! tunitles for the entire country Il is not
/ believed the Administration would OPP
/ pose the plan, especially in view OF the
J somewhat more favorable attitude
4 toward business which the Administra-
ton has intimated during the past