AMERICAN MONEY LENDERS.

Poverty Bay Herald, Volume XLII, Issue 13803, 1 October 1915, Page 3

AMERICAN MONEY LENDERS.

DRIVE A HARD BARGAIN. • ' LONDON, Sept. 30. Stock Exchange and financial circles . are- relieved at the United States' loan i being arranged, but are not enthusiastic » at the terms, y . ■ ' ■ ? It is pointed out that it is a good i bargain for the lenders. The interest, w ; itn premium redemption, is 1 per cent. : above the British war loan; and is very ■ high considering the benefit's which will accrue to American trade. i Moreover, it is doubtful if £100,000,---000 is sufficient^ and tho terms will bo i a handicap if another loan is- necessary. The Manchester Guardian criticises the distribution syndicate receiving a million sterling, and the fact that the issue will be free of British taxation. Th^ paper hesitates to believe the Bri- ; tish Government authorised such terms. Instead oi France getting credit for Britain's better credit, we are suffering for France's worse credit. The interest is practically 5 J per cent., represent! ne an advance from 4£ per cent., which will depreciate tho second British war loan to the extent of £125,000,000, or more than the whole amount from America. The financial papers declare the Americans have driven a hard bargain m the loan, but if it succeeds m restoring exchange the national g4in will be a valuable set-off to the stiff terms. This is a paramount consideration. .