Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1915-09-29
Succeeds
in Obtaining Loan
Continued From Page One.)

may pay for them by installments.
RCpayablc in Cash.
At maturity these bonds will be re-
payable in cash or convertible into
il2 per cent joint Anglo-French
bonds, redeemable from ten to twenty
wears thereafter by the two govern
ments Jointly and seyeralIy.
Sir Henry Babbingtou Smith, mem
Der of the commission, made public
The announcement. Sir Henry said
that an identical statement would be
made public tonight in Chicago by
Lord Reading, chairman Of the COM
mission, who, with three other mem
bers, is comforting with western bank
ers there. The statement was issued
here in the name of Lord Reading and
read as follows:
"I am now in a position to make an
announcement as to VI proceedings;
The discussions between the Anglo
French financial mission and the
American bankers have resulted in
the formation Of a definite plan for a
loan to the Hritish and the French
governments to be issued in this
country on a broad and popular basis.
The proceeds of the loan will be EN-
ploycd exclusively in America for the
purpose Of making the rate of eX-
change more stable, thereby helping
to maintain the volume Of American
exports.
Is Only Outside Note.
Tho plan contemplates the issue
of $500, OOO, 600 five per cent five
year bonds, constituting a direct joint
and several obligation of the British
and French governments as regards
both capital and interest. No other
external loan has been issued by
either of these governments, apart
from notes of the French treasury TO
% limited amount maturing i'm the Mex
six months
IL was announced that Russia
would not participate in the loan.
Henry p. Dawson Of the firm Of j. T..
Morgan and company issued this
statement on behalf Of his firm:
THE commission has made plain
its statement that il has deter
mined at the outset to recognize i'm
ycstmeut conditions in American. II
proposes To- meet these conditions by
issuing an obligation which is With
out precedence, namely the Joint and
several promise to pay of Great
Britain and France. 1t is to be noted
that this is an external loan free from
all present or future, English and
French taxes.
Leave Money in Banks.
TT is proposed by the commission
that the proceeds Of the loan be
handled SO as in no way to disturb
our own money markets and to h a
end the immediate general plan VIII
be to leave the cash realized from the
bonds on deposit with banking lnsll-
tutions which become members of the
throughout the United
states. This proposed loan may IN
fact he considered as an arrangement
hy American commercial II
AGRICULTURAL interests with their reg
ular customers to accept deferred
PAYMENTS covering commodities pur-
chased.
The agricultural, manufacturing, |
financial interests of this cOun-
try should welcome the opportunity TO
credit to any solvent customer
the extension Of such credit
furthers American trade. The nor
NAL export trade Of this country to
Great Britain and France runs into
many hundred Of millions of dollars
annually. To preserve such trade UNI
the existing abnormal conditions,
believe the proposed arrangements
10 be imperative and accordingly we
many banking institutions and fl
nancial houses that will be associated
with us will act as managers without
compensation
The two per cent margin between
the prices at which the issues will be
to the public and the syndi-
cate likewise will reimburse members
Of the syndicate. II Is contemplated,
for their expenses in placing the loan
the market.
Official Endorsement Needed.
To bring the great ofering-the
Of its kind ever placed in the
States-before investors
throughout the entire nation, the
country will he divided into dis
tricts or zones and to each district
there will be delegated a substitute
committee Of the syndicate managers,
composed of the subscribing banks
md trust companies within the dis
Parliamentary ratification Of the
plan is necessary In the case Of both
Great Britain and France but il is
assumed by members of the commits
sion that such endorsement will be Sc
cured without difficulty.
Bankers Cheer Announcement.
Ann HAas DO nNA. 49,. v