New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-11-12
BRITISH LOAN
IN NEW FORM
IS IMMINENT
Offer of Unsecured Ex-
chequer Notes Expected
There Within a Few
Days

Although IL 10 less than fortnight
since J. P. Morgan & Co.. as syndicate
managers. announced that a 100000
900 81 per cent collaterally secured
British loan had been sold, 1t was
learned yesterday that some time this
week Official announcement may be
made Of new arrangements for placing
a large amount Of additional credit at
the disposal of Great Britain.
From the nature of remarks made to
Chicago bankers by Henry P. Dawson
on November 3, when he was a guest of
honor at dinner given at the Chicago
Club, it may be assumed that there will
be an offering in this country Of Brit
ish Exchequsr notes, running from thir-
ty to ninety days snd subject to re-
newal. In It's November 8 issue Tho
Chicago Herald" stated that what was
proposed at the conference was not an
ordinary loan to tho Allies, but an ex-
tension Of unsecured credit Concern
ing the plan It said:
Mr.. Dawson suggested a plsn-the use Of
~ per cent thirty to ninety day British
Exchequer notes, covered by an ample gold
English government These notes would
be In form that would make them safe and
desirable as investments by American banks
and strictly liquid. as there would be am
pie gold for the redemption of such as are
offered at maturity. In other words. they
would, in the course of time, be regarded
much in the same way as are the deposits
in our own banks. against which the de-
pository is compelled TO carry Q specified
reserve.
To what extent the British ExcheQuer
AZ per cent thirty to ninety day notes
would be offered would depend, Of course.
on the gold cover and on the attitude OF
the banks Of the country. but with the
balance Of trade running in our favor TO
the extent Of $4,000 .00o. 900 yearly. As Mr..
Dawson estimates, the volume Of these
British Treasury notes placed in this eoun-
try Is likely to be very large IL they 60 at
ALL
Another thing that is closely interlsced
with the Morgan financial plan and which
Mr.. Dawson urges the greater use of Is
foreign trade acceptances. which are liquid
and carry with them q government guar
anty in most instances.
Since the return Of Mr.. Dawson from
London a short time since discussion
has been rife concerning the feasibility
of new British unsecured loan in this
market. Banking opinion Is decidedly
mixed over the reception Of such an
Offering to American investors. Some
have expressed themselves as believing
that it would be unwise to attempt .
big loan in view Of the preceding offer
ings backed by collateral. Others are
confident that the mere promise to pay
Of such countries as England and
France is sufficient guarantee to In
sure the success of an unsecured offer
ing Notwithstanding what has taken
place in the past.
From Mr.. Davison's recent remarks,
both public and private, 1t is becoming
increasingly apparent that the Allies
are even now in need Of additional
credits In this country. The Morgan
banker has repeatedly emphasized the
statement lately that Great Britain and
France should be treated as preferred
customers.
At present Great Britain is defraying
the cost Of the war at home through the
issuance of short-term securities. No
definite date has yet bll set for the
next war loan.