The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-18
Banker. conhrm Report.


Officially ]. p. MorGan & Co. and
the Guaranty Trust Company contentsd
themselves with mere confirmation of
the Belgian Premier's announcement.
but in quarters AFFILIATED with these In
stitutions it was learned yesterday that
at the moment no loan to Belgium Is
imminent and that the bankers will act
largely as financial advisers TO the Bel
gian Government.
The appointment as financial agents
for Belgium was a formal one. II was
said, and WHILE the groups that were
competing for the business Of placing
loans to Belgium were out of the run
ming for the time being, 1t was declared
that the announcement did not mean
that ]. p. Morgan & Co. and the Guar
anty Trust would monopollze business
bound to develop between Belgium and
the United States.
A bond issue for Belgium had been
discussed, 1t was admitted yesterday.
and the financial aid to that country
may take the form of a long term pond
issue, possibly thirty year maturity.
but all plans are in a nebulous stage
and must await further International
developments of Importance.
Belgium, 1t is said, Is the best bet In
Europe from the point Of view Of SOL
vency and Of struggle to increase pro-
duction. That country is engaged in
budgeting her requirements and may be
expected to tax her people rather heav-
lily. She is to get from Germany Ger
man bonds equal to the entire sum of
external debt. The PREPARATION Commits
sion on which the United States Is not
represented and which already is at
work to let Germany know how much
she must pay the Allies. hopes to give
Germany close estimate by January
/, 1920. 1t viii tend to remove uncer-
tainty. not only within Germany. but
elsewhere In Europe.
In other quarters In Wall Street II
was learned that the formal announce
ment OF the Belgium Premier repre-
scented a decision In the first round of
the competitive struggle for Belgian bust
ness in favor of the Morgan group. II
will be recalled that the most active
competitive group was composed Of the
Equitable and Central Union Trust CON-
panies and William Solomon & Co.. New
York; the First National Bank and the
Old Colony Trust. Boston: the Mellen
National Bank and Union Trust Com
pany. Pittsburg, and the Continental and
1900 ~he-eAOheA ~oAAht SAhsobS-
Situation Grows More Acute.
Loans made to Belgium, however.
are expected to require national partici-
patton and the Morgan-Guaranty Trust
group has gained merely the official post
Of financial advisers to the Belgian
Government, which not only gives II
charge Of the acceptance credit OF
$4,000, 900 recently renewed, and Of the
Offering from time to time of Belgian
Treasury bills, but will enable 1t to
direct any long term bond offerings of
the future
The situation relative to foreign
credits is growing more acute from day
TO day, II was said in important bank
ing quarters, and representatives OF
Finland and Italy were knocking yes
terday persistently at banking doors
without getting definite results so far
as could be learned. It was said that
every day of postponement of the ex-
tension Of foreign credits increases the
amount that will be required. All the
European countries taken together need
advances aggregating S75.000.0 900 a day
al present as a minimum and II IL
expected that the amount will rise to
slOOOO0,O00 day. The total needs in
Europe, according to an expert authority
VINO has conducted a comprehensive
survey are no less than $4,000, 900, 900.
comprehensive plans are needed Il
extend adequate financial all TO Europe
ard reports to the contrary notwith
standing the so-called Dawson plan
meaning that the principles enunciatet
oy Henry p. Dawson of the firm OF ]
r Morgan Co.. has not been aban
aoned and will be pressed to a con
cluslon as soon as the peace treaty b,
ratified,