The Bridgeport evening farmer., 1916-04-15
FRANCE SEEKS
 2OO,OOO,OOO .
 LOAN IN U. 5.
Negotiations Under Way With J. P. Morgan & Go.
 and Other Bankers

New York, April 15-The French
 government is negotiating with J. P.
 Morgan & Co. and associated bankers
 for placing in this country compre-
 hensive new loan, out of the proceeds | of which payment will be made for both government and commercial purchases. Gossip in the financial | district has it that discussions are
 turning on a credit of about $2O0, ,000,- i 900, but no amount has been agreed | upon nor has the form which the loan
 will take been decided. Octave Homberg, the financial rep- resentative of the French government
 in this country, said yesterday that it was true, as he said some weeks ago, that no negotiations had then been entered into, and that there had ac- l cording1y been no delays in the mat | ter. He said the French government S finances, as regards obligations due in the United States, had always been in a comfortable position, and that there was no haste necessary now in agreeing upon terms. From the French governments share of the $4S0, 100000 raised by means of the Anglo-French loan there remains un- expended between $30,00O,00O and 1 $40, O,000,\ and MT. Homberg said that his government had various other means for providing cash in the Unit ed States as it is needed. Most inn portant among these is the sale of American securities owned in France, which has been going on steadily for ] a long time.
 He also said that his governm ent had at no time been concerned in the movements of exchange on Paris and had used no artificial means to keep the price of francs up. The recent weakness was due entirely, he thought, to the breakz in the rate of EHT-o7 n eSvo I7oT on xxyn1 10I1 directly effects a similar reduction at this centre. London has been calling gold from France. MT. Hombergs statement follows:
 '"The last call on the Ang1o-French Loan seems to have created in the financial district of New York an inn precision that the French government was about to find itself short of doI- lars for it's payment here, unless new credit was immediately arranged. Therefore a certain feeling of nervous ness has manifested itself on the Elk change market, and perhaps also certain amount of speculation has been undertaken, which has caused the rate of francs to rise quickly to very high quotation.
 As was pointed out several weeks ago, the reFnch government has sev- eral distinct means of securing credits in dollars. As long as the French government mas at It's disposal its share of the proceeds of the Anglo French Loan, it naturally would have less recourse to these other means; when it's share is exhausted, however, and the fact that the last call has been made for the 10th instant, does no tprove tha tthis is already the case, the French government will then make use more freely of these other means.
 At any rate, one can be assured that the French government will not find it any more necessary at the pres ent time, than it has since last fall, to go out into the Exchange market and purchase dollars. No orders are placed by the gOvernm ent in the Unit ed States until all arrangem ments have been made for the financing of the same without purchasing exchange.
 'fAt this time negotiations for fur ther credit operation are well under way, and, although nothing is press ing, one can be sure that the French government, true to it's foresight and careful policy, will make such ar engagements that funds which might be required will always be at it's disposal long before they are actually need-> ed''
 Francs sold yesterday down to SOS 1-2, said to be a new low record, but they recovered before the close of business to 6.04 3-4.