The Bridgeport evening farmer., 1916-08-16
COMPLETE PLANS FOR FLOATING OF
 BIG ALLIED LOAN

New York, Aug. 1s.-Negotiations to establish the second great British credit in this country were concluded yesterday at a conference of bankers in the office of J. P. Morgan & Co.,, and the official announcement merely awaits arrangement of a few minor details.
 The agreement provides for the pur- chase by banking syndicate of $250,- 100000 two-year 5 per cent. British notes, which is to be a direct obliga- tion of the British government. The exchequer will deposit securities with the syndicate managers to an amount of $30O, ,000, 900 approximately. This col lateral will consist of about $10O, ,0O0, 900 in American securities, $100, ,000, 900 in Canadian securities and s1OO, ,OO0, 900 of the bonds and other obligations of Ar gentina, Switzerland and other neu- tral countries.
 The agreement provides that one- half of the American securities may be withdrawn if the British govern ment elects after one year and other acceptable securities are substituted.
 Forming Underwriting Syndicate.
 A syndicate is being formed by J. P. Morgan & Co. to underwrite the loan, which probably will be offered at 99 to the public. The syndicate will con- sist of practically all the large finan- cial institutions and banking firms in the leading cities of the country.
 The statement is made on high au- thority that the present outstanding short-term obligations of Great Brit ain in this country, consisting largely of r, r. small part of the debit balance, pres- 'ent and future. for which the credit will provide.
 Since Jan. Great Britain has placed an immense amount in con- tracts for munitions, steel and cop per, and large similar contracts are pending. Some of those under nego- tiation call for the delivery during 1917 of 25o,o0,ooo pounds of copper, with the probability that an additional 15o. .ooo, 900 pounds will be contracted for within the next month.
 Loans Total $1,20O 10000
 The new credit will bring the total direct borrowing of the Allies up to $950 1000, 100000 within the last 12 months. This includes the $500, 0,00O,- 900 Anglo-French bonds, sold last fall; the $10O.000,00O French loan, re- gently offered by the American For eign Securities Co.,, organized by New York bankers headed by J. P. Nor- gan & Co.,, and the $10O, 1000, 900 Rus sian credit, foated by syndicate headed by the Guaranty Trust-Co
 It does not include the heavy bor- rowings within that period by the Dominion government and the Cana dian provinces and municipalities. and the $50.000,000 banking credit es- tablished by the London Joint Stock Banks.
 All told, American banks and in- vestors have taken more than $1,200,- 000,000 of foreign obligations since the beginning of the European war.
 In addition to the new credit es- tabhshed here by the British govern ment. Great Britain has shipped since early Tn May to this country $225,- 000, ,000 gold in payment for supplies.
 In view of the fact that the co1Iat- era1 for the new British credit is to curities liquidated hero since the be- ginning of the European war. Debit Balance Experts Differ. Shortly after hostilities opened. David Lloyd George, then Chancellor of the Exchequer. said in Parliament that the United States owed $5,000.- 060,000 to Europe. He meant that this total included obligations of every character. including stocks and bonds, mortgages held by financial in- stitutions in Great Britain, mostly by stock banks, and current indebted ness. Sir George Paish, the British economist. subsequently made a sim liar estimate. About the same time. however, A Barton Hepburn. chairman of the Chase National bank, a close student of economies. estimated that, May l, 1914, the United States owed $3,600.- 00O,0O0 to Great Britain in long term and current obligations, and the total indebtedness to the Continent was $1. .O00, ,0O0,0 900 approximately. Durin- the last week many leading flnanciers of this city. including mem