The times., 1899-07-13
FLOATING MEx1co,s BONDS.
j. Pierpont Morgan & Co. PInce
Sill .OOO.OOO ON the NIurkcf

New York. July 12.-Tbe banking house
of J. P. Morgan 6 Co. today took the
first steps toward the conversion of the
foreign debt of the Republic OF Mexico,
one CT the largest contracts ever under
taken in the history of the firm. The
loan TO Mexico amounts to S110,095 900.
and subscriptions books for the new issue
of Mexican bonds were opened by J. T.
Morgan G. Co. at 10 O'Clock this morning.
The firm issued a statement today an
nouncing that it had entered into con-
tract with the United States of Mexico
for the conversion of the entire existing
foreign debt of the Republic. Associated
with j. p Morgan & Co in this big trans
action were S. Bleichroder. of Berlin, the
Deutsche Bank. the Dresdrer Eank, ]. S.
Morgan & Co., of London, and bankin g
houses in Frankfort and Amsterdam. Sub
scription books for the Mexican loan were
opened today in all of the cooperative
banks. The bonds are to draw interest at
. per cent, payable in gold and beginning
on July l. They will be issued in denomi-
nations of EGO, 9100. G200, $500, and
1000, and the equivalent in American
dollars and in marks. The terms OF pay
ment. as announced in the Morgan COM
pany's statement, are: Five per cent on
application. 5 per cent on allotment. and
lIc DdlduCt at iut OpliOI VI lAt ouDoNiAbCt
at any time before September i next.
The formal announcement says:
The bonds, or their proceeds, are intended ex-
cluSively to retire the existing foreign loans Of
the United States Of Mexico, VIZ: the per cent
loans OF 1888, 1880, and 1893, and the per cent
Tebuantepec loan heretofore issued in Berlin and
London. Tho bonds offered are secured by hy-
pothecation OF G2 per cent of the import and ex-
port duties Of Mexico. These duties are collected
through the sale OF customs certificates by the
National Bank OF Mexico and RENTED direct TO
). Bliechroder for account of the issuing houses
by said bank, the Mexican Government beng
pledged to maintain margin of 10 per cent
above the amounts required and to make up any
deficiency fifteen days maturity OF coupons
due and bonds drawn. The entire issue is to be
retired within forty-five years at par by semi
annual drawings (the first drawing to take place
in June, 1900, or by purchase in the market
il same can be made at under par. OF the above
described bonds, e5,0O0OO0 are reserved for aIot-
inent in this country and in Holland. The issue
in England and Germany at the present time
will beshmited in favor OF holders of the existing
bonds, to whom Will be given a right of conver-
sion.
IT is announced that application will soon
be made for the listing of the new bonds
on the New York Stock Exchange. They
viii also be listed in London. The sub
scription books, which were opened this
morning. will be kept open until Septem-
Der l. and it is expected that there will be
lively demand for the bonds
This transaction marks the venture of
New York capital into new fields fields
heretofore filled by English and German
capital. The present foreign debt of
Mexico is held almost exclusively in Eng
land, Germany. and Holland, but Mr.. ].
P. Morgan undertook the contract Of re-
funding at rate of interest l per cent
lower than is now being paid. 1t is said
that J. P. Morgan & Co. will receive at