The Sun.
London, England, 1868-10-06 00:00:00

ITALIAN GOVERNMENT SIX PER CENT.
TOBACCO LOAN

Of 237,000,000 FRANCS, or £9,404,762.
In Bands of 500 francs each, and Bonds of 2,500 francs
each (comprising five 500-franc Bonds).
Bearing interest at 6 per cent. per annum from Ist July,
1868.
Redeemable at par by half-yearly drawings in fifteen

years.
Placed on the same footing as the Public Debt of the
United Kingdom of Italy, and not to be subjected to
any special tax.
Principal and interest, payable in Italy, and at Paris, Lon-
don, and Berlin, guaranteed by the Italian Government,
and specially secured upon the produce of the tobacco
revenues of Italy iu accordance with the Convention of
the Italian Government,- dated 26th July, 1868, sanc-
tioned by the law of 24th August, 1868.
The payments .of interest and principal, both in Italy
and at Paris,' London, and Berlin, will be made in
geld.
The repayment of the principal in London will be male
at the fixed exchange of 25 francs 20 centimes to the
pound sterling.
Messrs. Stern Brothers bag to announce that they are
authorised to receive subscripticns for the above bonds,
which are issued for the purpose of effecting a loan to the
Italian Government, secured on produce of the tobacco
revenue of Italy, in pursuance of the above-mentioned
convention.
The bonds- are issued by the company entitled "Societe
pour la Regie co-interessae des Tabacs dans le Royaume
d'ltalie,” established with a capital of fifty millions of lire
(X 2,000,000), to which has been conceded by that conven-
tion the farming of the Italian tobacco manufacture for
fifteen years.
The manufacture and sale of tobacco in Italy are, as is
known, exclusively reserved to the Government, and the
profits therefrom form one of the principal sources of the
revenue of the kingdom. The returns from this source
are published monthly in the Italian Government Gazette,
from which it appears that the gross receipts in 1867 I
amounted to upwards of eighty-one millions of lire. This
did not include the revenue from the Venetian territory,
which is now added, estimated at eleven millions more.
The convention (Arts. 5 and 23) stipulates that the com-
pany shall retain and set apart out of the revenues of the
tobacco manufacture sufficient moneys to provide for the
interest and sinking fund cf the bonds, prior to any pay-
ment to the Government or the shareholders'.
The bonds are guaranteed by the Italian Government,
and will be countersigned by a representative specially
appointed by the Government for that purpose.
The bonds will be issued in amounts of 500 f. and 2,500 f
each (the latter comprising five of 500 f.) They will be
expressed iu francs and in the equivalent amount in pounds
sterling, at the fixed exchange of 25f. 20c., at which rate
the repayments in London of the principal will be made.
The bonds bear interest at the rate of 6 per cent. per
annum; thus on each bond of 2,500 francs the annual in-
terest will be 150 francs, which will be reduced to 136
francs 80 centimes by thededuction of the general Italian
income tax of 8.80 per cent.
The interest will be payable half yearly, on the Ist
January and Ist July, in gold, in Italy, and at Paris, Lou-
don, and Frankfort.
The bonds will be divided into thirty series, each eon-
containing 15,800 bonds of 500 francs each, redeemable at
par, within fifteen years from the lst January, 1869, by
thirty half-yearly drawings, the first to be made on the Ist
April, 1869. At each drawing one entire series will be
drawn. The repayment will take place three months
after the drawing, and will be made at par (without any
deduction for tax) in Italy, Paris, London, and Frankfort.
All payments in Italy, both of principal and interest,
will be made in gold, to the exclusion of all paper money.
The Italian Government has stipulated that the holders
of bonds shall have the option of taking at par 47,400
shares in the company, of 500 lire each, at the rate of one
share for every ten 500 franc bonds, for which purpose the
Concessionaires, having subscribed for the whole of the
100,000 shares which compose the company's capital, have
appropriated thereout 47;400 shares. The time and manner
of exercising this option will be hereafter announc d.
The price of issue of the bonds iu England will be at
the rate of 7s. per 2,500 f. bond, payable by the fol-
lowing instalments:—
On Application £lO 0 p,07 band of 2,500 francs.
„ .Allettnent lO 0
„ 16th Nov., 1868 15 0
„ Ist January, 1869. 15 0 deducting £2 19s. 6d. (less
English income tax), for
Coupon of 75f., due let
January 1869.
_ _

„ Ist February. 1869. 15 (I
„ Ist March, 1869 ... 16 7

£Bl 7

The first coupon of-75 francs per bond, falling due Ist
January, 1869, will bo taken at .E 2 19s. 6d., without mak-
ing any deduction for Italian income tax, on account of
the instalment duo the same day. On payment of the in-
stalment due on allotment, Scrip certificates will bo de-
livered byMessrs. Stern Brothers, which will bo exchange-
able upon payment in full of the instalments for the De-
finitive Bonds as soon as they are prepared.

Subscribers desiringto anticipate the payment of the re-
spective instalments w►ll have the option of doing so under
discount at per cent. per annum within a week after
allotment, or on any of the days appointed for the payment
of the instalments.
Taking into account the discount on payment in full,
the Coupon on Ist January, 1869, and the half-yearly
drawing, the loan affords to subscribers an interest equal
to 9 17-16 per cent. on their investment.
Interest at the rate of 6 per cent. per annum will be
charged on all instalments in arrear, but in default of due
payment of the respective instalments, the scrip and all
previous payments will be liable to he forfeited.
In case of the allotment being for a less number of
bonds than that applied for, the surplus of the deposit will
be applied towards the instalment duo upon allotment.
Should there be a surplus beyond that instalment, it will
be returned to the subscriber forthwith.
Where no allotment is made the whole deposit will be
returned without delay.
On the issue of the Definitive Bonds it will be arranged
to distribute them as much as possible over the several
series, so that a subscriber for thirty bonds shall re-
ceive one reimbursable in each of the thirty half-yearly
drawings.
Copies of the convention of 25th July, 1868, the law of
24th August, 1868, and an extract from the supplementary
convention regulating the details of the bonds, can be seen
at the Italian Consulate, Old Jewry, E.C.
All applications must be made not later than the even-
ing of Thursday, October Bth, 1868, accompanied with a
deposit of 10 per cent., to the Imperial Bank, Lothbury,
London, E C.
Frospeetuses can be obtained at London from Messrs.
Stern Brothers, Angel-court, E.C.
Subscriptions will also be received in Paris by Messrs.
A. J. Stern and Co. ; at Frankfort by Mr. Jacob S. H.
Stern; at Berlin by Messrs. Robert Warschauer and Co. ;
in Italy at the Offices of the Societe Generale do Credit
Mobilier ltalien, the National Bank of the Kingdom of
Italy, and the National Bank of Tuscany.
Angel-court, London, E.G., October 5, 1868.

ITALIAN GOVERNMENT SIX PER CENT.
TOBACCO LOAN.

NO
LETTER OF APPLICATION.
(To be retained by the bankers after payment of the
deposit to them.)
Messrs. Stern Brothers, London.
Gentlemen,—llaving paid to The Imperial Bank
(Limited) the sum of £ , request you to allot to
Bonds to the nominal amount of pounds
( francs), in the above loan, and hereby agree
to accept that amount, or any smaller sum that may be
allotted to , and to pay the farther instalments
thereon as they become due, according to the terms of
your prospectus of the sth October, 1868.
Your obedient servant,

Address in full
Date October, 1868.