New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-04
Diplomatic Denial Taken
as Confirmation OF
Loan Bargain.
FINANCIER'S TRIP
VISIT OF POLlTENESS
Stettinus May Follow His Chief
to Adjust War Order
Business.

That the announcement that the main
PURPOSE Of J. P. Morgan's trip to
Europe was 70 arrange new loan TO
the French government was regarded as
premature" was shown by statement
issued Yesterday by Octave Hombers,
a member Of the Anglo-Frenoh Loan
Commission and financial agent OF the
French government in this country, who
said there were no negotiations Of this
character going on at the present
time"
called correct IN every detail at the
oNices Of the Morgan firm, the
Impression in banking circles was
that the denial was more or less
technical and diplomatic, particularly
In view Of the admission by important
bankers that they had been sounded
on the sdvisability Of the iotatlon OF
French government loan IN the near
future. The continued weakness in ex-
change on Paris was aother argument
set forth that steps 70 night the mar
ket would soon be taken. The statement
issued on behalf of NJ. Homberg is as
follows:
y. p. Morgan's departure for Europe
having been connected with an alleged
negotiation for a new French govern
ment loan, certain details even having
been given, ". Octave Homberg. finsn-
cisl agent Of the French government
made the following statement;
The French government is not
at the present time. In negotiation with
J. y. Morgan & Co. or any other bank
or group OF bankers for a new loan
or credit IN the United States. The
departure Of J. p. Morgan for Europe
therefore obviously has no connection
whatever with any negotiation, since
none exists.
Furthermore, the government has
large sums in dollars at its disposal
az present; the credits still to be dis
posed Of are Of different classes, and
are considerably IN excess Of the very
important balance still 20 the credit or
the French government resulting from
the proceeds Of the Anglo-French loan.
Supplemcnting his formal statement
NJ Homberg said that one Of the rea-
sons for the large sums still TO the
credit OF the French government in
New York banks had been the delay
in the shipments OF war supplies. II
IS known now, however, that such ship
ments arc now going out In increasing
quantities and that the dissatisfaction
OF the buyers is rapidly disappearing.
One Of the reasons advanced for the
secrecy attending the discussions Of
French loan was that II had been in
tended as a matter of international
courtesy 10 present the terms TO the
French government before they were
made public here. Such a course OF so
ton. Il was argued. would follow out
20 the letter the French idea Of polite
ness.
A statement widely published in the
financial distrc. yesterday was TO the
effect that T. X. Stettinius. q member
OF the Morgan firm, in charge Of the
export department. would. within the
next ten days, follow his chief TO
Europe TO aid in negotiations for re-
Stunning the placing OF war orders in
this country on a large scale.
Mr. Stettinius refused either TO con-
Arm or deny the report. saying that he
had not get made I'D his mind what he
would DO, except that he was going
TO take a vacation. In other quarters,
however, that he was going abroad was
accepted as q foregone conclusion.