New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-09-26
ALLIES LOAN
AWAITS CABLE
Replies from England and
France to Proposals
Expected Soon. .
MAY DEMAND NEW
WORKING BASIS
Sir Ernest CaSsel, Financial Ad-
wiser to Late King Edward,
Starts Back to London.

within the next few days possibly
within the next twenty-four hours -
there will probably be decided a matter
Of the frst importance in connection
with the fotation of a $500, 900. 900 loan
in this country for the Allies. II is
whether actual negotiations shall be
begun. With the tentative proposals
submitted to the Anglo French mission
as a basis, or whether a new set Of
proposals will have to be formulated.
No member Of the mission could be
induced to say anything yesterday
about the status of the loan negotia-
tions. But the fact that it was practi-
cally a day of for all the members and
that no effort was made to further the
matter beyond the holding of few in
formal conversations with American
bankers, was taken as a partial sub
sanitation of limitations in important
financial quarters. These were that on
Thursday and Friday the British and
French delegates composing the mis-
sion had sent long statements 70 their
respective governments summarizing
.hc prospects for the loan fotation and
asking for instructions.
suggestions to this effect made to a
mc.pher of the mission yesterday were
received without comment. In the
narcial district, however, il was re-
.;orated that further action was wait
lng on the answers to be received from
the British and French governments.
Expect Favorable Replies.
It was the general expectation that
these would be favorable and that the
negotiations would accordingly begin
on Monday or Tuesday. If they were
any later in starting. then it would be
/ because of the delay that is being eX-
perienced in all cable communication
r''h Europe and because OF the COM
81 catiCns of dealing with two govern
merts in tead of one.
Hale. IN the nature Of the discus
sicrs. thing can be settled until the
working basis is agreed upon. there IS
roasoa TO believe that the proposals
whose tentative acceptance Is now
sought arc as follows:
The loan to be for approximately
$500, 900, to be obtained through the
sale of notes on the joint credit Of
Great Britain and France, with pro-
vision that the proceeds shall be ex-
pended wholly within the United States.
2-The term of the notes to be five
years. with a promise of conversion, at
the holders option, into long-term
bonds when the notes mature.
3-The notes TO bear interest at the
I rate of per cent and to be offered TO
investors at price slightly under par.
4-The distributing syndicate to re-
coive an additional discount of l per
cent, to cover its expenses.
/ 5-Interest and principal to be made
payable at New York in American dol
lars. or. at the option of the holder,
at London or at Paris at fixed rate
Of exchange.
6-In lieu of a conversion privilege
at maturity, the notes TO be exchang-
able at par for securities OF any subse-
ouent issue bearing a higher rate of
interest.
Tho notes to be free of all Brit
ish and French taxation, including in
come tax.
No Formal Conference Held.
Alexander J. Hemphill, chairman of
the board of directors of the Guar
antv Trust Company. was among the
few callers on the mission at the Bilt-
more yesterday. They held no con-
ference as a body and it was the under
standing that they would not meet
again until tomorrow. Some of the
members were planning to go out Of
town over Sunday.
It was regarded as significant in the
financial district that Sir Ernest Cas-