ANGLO-FRENCH WAR LOAN

Dominion, Volume 9, Issue 2581, 1 October 1915, Page 8

ANGLO-FRENCH WAR LOAN

SHARPLY CRITICISE^ <:'••• • V, " OPINIONS IN-BRITAIN Sy-Telsgrajh—Press .Association—CoDjrljlit (Kec.SeptemboV3o,ll.lsp.m.) . - . London, September 29. The Stock Exchange . and- financial circles are.; relieved .. that ; the United ' States loan lias been arranged,' but thoy ... ate. not enthusiastic- - regarding the y : •• it .is- a good bargain' for tlie lenders. The interest .. with the 1 premium on redemption is 1 . per„icenfc.-abovo tho British war loa.ll ; rate, ;'.aiid is> verv >high -considering the . benefits which will- accrue to American trade it is doubtful if one hundred million .sterling will be suffi- . eient. . i.Lheitermswilbbo a'handicap if , another loan'is necessary. - " ■ t Tho "Manchester Guardian" has hotly criticised'::-.the' distribution of tho stock, by which the (Syndicate ,is receiving a;" million sterling, and the 'fact that the issue is- free of British, taxa- ■ i tion. It 'hesitates to believe that the - ! British Government has authorised such terms. ' "Instead of France getting ■ credit' for better credit, wo i': are, suffering for France's worse credit. Tlie interest is practically 5J per cent., representing a dccline from the. 4J per cent, war loan, which, will depreciate the second British war loan to the extent of £125,000,000, or more 'than 1 the .whole amount .from America." The financial: papers declare that' the ■ .Americans have driven a- hard bargain; "If. the loan succeeds in. restoring. the . vexchange rate," they say, "the national . . gain will bo a valuable set-off., to the ' stiffterms. This is. the paramount con- ' eideration." ~ - .