New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-24
Receives
Balfour; Broad
Issues Discussed
Great Britain Will
Be First of Allies
To Get u. Loan
England's Urgent Financial
Needs Discussed with McAdoo
and Reserve Board

washington, April 90 He ''i'N
American loan TO the Allied nations
will go to Great Britain. The amount
and other details probably will be made
public by Secretary McAdoo within a
few days.
Whatever the sum, the amount will
be available out of the proceeds Of the
$4,000 ,OOO, 900 bond issue soon to be
offered to the public, of which $4,000
OOO.OO will be loaned TO the Allies.
Announcement to this effect was
made tonight at the Treasury Depart
ment after day crowded with confer
ences between Secretary McAdoo and
Federal Reserve Board officials and
American bankers and bond dealers and
official representatives of Great Britain
and France.
Another development was the an
nounoement that the size of the first
issue of bonds authorized under the
$1,000 100000 war finance measure will
depend largely upon the immediate
needs of the Allies. Reports as to this
have yet to be received in detail.
"The entire $4,000, 100000 of author
lied bonds will not be offered in one
lump sum, according to present tenta-
tive plans, but probably will be called
for in several instalments of issues
By this course it is believed that finan-
cial disturbances which might result
were the country called upon to absorb
the whole issue at once will be averted
Working Out Loan Details
Details as to the amount OF the first
issue, its distribution among the Allies
the character and terms of the bonds
methods of -disposing of them and
other questions will engage the atten-
ton of Treasury Department and Fed
eral Reserve Board oficials---during
the next ten days.
The first of these conferences began
to-day with the visit Of Lord Cunliffe
governor Of the Bank of England, upon
Secretary McAdoo and Governor Hard
ing of the Reserve Board. The mem
bers of the board returned the call, and
have arranged to entertain Lord Cum
life at luncheon Wednesday. There
after negotiations will be conducted
with a view to disposing as rapidly as
possible of details yet to be determined
so that the bond issue may be offered
without undue loss of time.
The French Ambassador called upon
Secretary McAdoo later in the day and
spent more than an hour discussing the
terms of the bond issue and the i'm
mediate needs of the French govern.
ment.
On behalf of Great Britain, it is ex'
pected. Lord Cunlffe will place before
Secretary McAdoo details as TO hel
most pressing financial problems.
Programme Ready Next Tuesday
As soon as a definite idea is obtained
Of the needs Of the chief Entente gov
ernments the tentative programme viii
be placed before President Wilson anc
the Cabinet for approval, probably By
Tuesday of next week.
An approximate idea of the immedi'
eate requirements of Great Britain
France and Russia. it is understood, al
ready had been obtained from repre-
sentatiyes of those governments prior
to the arrival of the British commits
sion. Lord Cunlife, 1t IS believed, will
ampify details already in hand anC
possibly speak. in an unofficial capacity
for other countries than his own.
In reaching the Geclsion to make th'
first loan to Great britain officials
have been influenced by the knowledge
that Great Britain. as banker for the
Allies prior 70 Americas entrance int
the war. has met the heaviest hnancla
strain imposed upon any Of the I'm
tCnte governments.
In making the loan. the United
States will accept British bonds bear
ing 3i2 per cent interest as security
These bonds will be deposited in thu
Treasury here and the interest pay
ments upon them-at rate consider
ably lower than that which Great Brit
air has had TO pay for recent borrow
ings-will balance the payments mad
by the United States 70 holders OF th'
American bonds.
A similar course will be followed IL
making loans TO other Allied nations.
Bankers Pledge Cooperation
Domestic phases Of the forthcoming
issue were discussed to-day by Secre
tary McAdoo with a delegation from
the Bankers Investments Association
headed by Henry L. Stewart. OF Chi
cago. Mr. Stewart and his associate
assured the Secretary Of their heart.
cooperation and placed their service
at his disposal.