Show ca J. J r Bankers Hint Ii J s Allied II I Is Deal Dea DealOn DealOn On Securities By RICHARD WALDO WALO and GABRIEL NW NEW YORK YORK Banking Banking houses have shown a preview of what may maybe maybe 1 be the administration plan pla to toj handle the allied aled securities In this t c j country countr The inside peek comes I from responsible Washington aut au au- au- au t It I may be an accurate II picture picture of what will wi be attempted I within the month month or month r or it i may be a atri atrial tri trial l baloon balloon to see how Wall Wal street i and ad the te public react IiI By the proposal a syndicate of 01 L l American er cn bankers would take fake over t the he whole security load at the fixed If tj price as of a certain day and lend lendt lendi i the equivalent sum to the foreign t l 1 owners In The treasury would tap the te stabilization stal sta sta- sta- sta l fund fud idle dle since beginning of the war the full ful amount of ofte the te loan set up a separate reserve i which will wi guarantee the bankers against loss The bankers then I i would own the securities and could II I sell sel them at whatever appreciation I f the stock might reach or they could elect to wait for redemption by the borrowers Net result resul would be treasury s stabilization of stock prices above r a certain certai minimum since the banker bankers bank bank- ers er would hold on to them at any hint of a price fall fal By this operation opera opera- I 1 tion ton the allies ales would realize on the securities at a fair figure the F United States stock stoc average would l f rise a few points points hardly hardly a handicap handicap handi handi- I cap in an election electon year u The obstacles are the Johnson JohnsonI I I I act the neutrality law and the 1 clamor of those congressmen who are dead set against financial in involvement in- in l men a abroad road The There e is a pos pos- r all aU three can cah be circum circum- 1 vented By one interpretation the thep f p I Johnson act exempts federal agences agencies agencies agen agen- cies from the ban on loans The te ces I neutrality provision sion could possibly be avoided by construing the loans loan loans as conditional sales The Te congressional congressional congressional reaction may be just what this his t trial ial balloon baloon seeks to test |