The Bridgeport evening farmer., 1915-09-20
HUGE SYNDICATE AGREES ON LOAN
 FOR THE ALLIES
Final Details of Big Transac- tiOn Will Be Completed
 Today
FIVE TO FEN YEAR
 BONDS AT , PER GENT.
Sale of Bonds Will Be At Par To Individuals, Is
 Agreement.


 made by those countries in the United States is almost reality All of the vital points at issue have been cleared away at conferences held in the last few days, and, while the discussions will continue today, it was stated last night on uninapeachable authority that the tAnglo-Frrench financial comnis- sion and the American bankers with whom they have been dealing are now in substantial acord on the essential points.
 The loan will take but one forn1-an issue of short-term bonds by the gov ernments of Great Britain and France. It is probable that they will run from five to ten years. They will pay per cent. and be offered to investors at par.
 To handle the loan there will he formed the greatest syndicate of un- derwriters, or guarantors, as one bank CT referred to them yesterday, ever formed in this country. This syndf- cate will embrace practically every large banking institution in the United States, if it's promoters hopes are real- ized. Membership will not be limited to institutions. Individuals will be al lowed to subscribe, and it is under stood that provisional pledges of sup port already have been obtained from many persons of wealth.
 There will not be one price to inves- tors and another and lower one to the syndicate members. To compensate assume, an allowance equivalent to one-haIf of 1 per cent will be made, as we'll as a payment to the managers to cover the expenses of forming the syndicate and the various items of clerical hire.
 Big Discount Not Claimed.
 A published story to the effect that J. F. Morgan & Go. had been insisting on a big discount for the profit of the syndicate was vigorously resented 8yes- terday by persons close to the nego- tiations. They said that the contrary had been the case from the beginning, and that MT. Morgan had stood out for a flat price to investors and bankers.
 The amount of the loan will not be definitely decided until shortly before the closing of the negotiations. The commission is still desirous of getting as large a. sum as possible At the same time they have shown a disposi- ton to meet the views of the Amer ican bankers in so far as possible.
 Their one idea was expressed on the day following their. arrival" said a banker conversant with the discus sion last night s.It was to arrange a credit which would amply care for the needs of business and restore the exchange market to normal. Some of the local bankers thought that a billion dollars was altogether dispro- portionate to the needs of the bor- rowers.
 stThe commission agreed that if that was the case they would accept a smaller sum. They have listened to suggestions that part of the burden of stablizing the market be borne by further gold shipments and the sale, or deposit of American securities owned abroad.
 :, the loan will be between $500. .OOo, 900 and $500, .ooO.N If you choose a point midway between those figures, you will not. be far wrong.''s
 IdIniting Uses of the Credit
 The proposal to limit the uses to which the credit may be put has been a sore point with the Commissioners object to be aimed at, and that is a remedy for the disorganized forei gn exchange situation which has threat ed to end a large part of this coun- try's export trade. They argued that 1t would not be feasible to borrow here for any specific purpose, and in this view they were supported by in- fluential New Y ork financfers.
 A concession in this regard has been found necessary to enlist the sup port of several very important firms which have hitherto enjoyed close re-
 
 of banks in the Middle West. Repre- sentatives of the latter are und derstood to have delivered plain uItfmatuna, saying that if the proceeds of the l credit were to be used for war pur- chases they could not join any sym dicate looking to it's Notation. On the surface, this point remains un- settled but it is the understanding of bankers who made the protest that the prospectus of theb onds, when it is issued will announce that none of the money is to be used for other than strictly commercial purposes.
 In the opinion of both parties to the negotiations, this restriction is not so serious as it seemed at first. In the first place, the definition of com mercia1 purchases will be a broad one, so that only such unquestioned items as shrapne1. powder, guns, and other articles for use in the field will be considered munitions.
 In the second place.. with a credit Of upward of $500, O,0O0,Oo0 esta blish- finance other obligations without diff ficulty through the usual channels. In other words, with the big items in the dealings between this country and Europe provided for through the loan the pressure on the exchange market gold shipments for the payment of munitions will not reach abnormal figures.
 Question of Gold Imports
 ''It was our idea at first that we could perfect an arrangement which would mean the end of gold exports to us from London said a New York banker vest erday. with the mat ter settled as it is proposed to settle it now we have failed to accomplish this. Some further gold shipments will be made from time to time, but the amount will not be excessive. England has a considerable store of gold that she can consider free for export, and we can stand some more, even though we had much rather 1t stayed in Europe
 As usual, the activities of the sew eral commissioners were yelled in secrecy again yesterday. It was said that Baron Reading, the chairman,