New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-09-16
READY FOR GERMAN LOAN.
INDICATIONS ALREADY RECEIVED THAT
THE AMOUNT VIII BE OVER
SUBSCRIBED

The German Government loan will be offered for
public subscription Tomorrow Tuesday The
exact price OF issue has not yet been determined,
but it is expected that It will be par. Although
the loan has not yet been presented for subscrip-
ton many applications for the bonds were re-
ceived yesterday by Kuhn, Loeb Co and the
National City Bank. The aggregate of these ap-
pIications have already made IT clear that the loan
will be largely oversubscribed, and the number or
requests for allotments of small blocks indicates
that will be held largely for investment purposes
A representative OF Kuhn, Loeb & co. stated yes
terday that discrimination would be observed
in making allotments. and that small investors
would he treated literally. The two houses which
have purchased the loan still decline to make
known the form in which the payments Will be
made While it is explained that they prefer be
fore making any announcement in this respect, TO
wait for developments in the foreign exchange
market, it is generally understood that no gold
will be shipped. and that the amount will be paid
in credit transfers in Europe.
In view of the fact that the OF floating
the German bonds here was insured by the willing
ness of the New York Life Insurance Company to
take S5GOOOOO of the bonds 1t is interesting 10 note
the prominence which insurance companies in this
country have taken in subscribing for foreign gov
ernmental securities. The New-York company took
the entire $1OGNO0OO OF Russian railroad bonds
which were offered here in January, while the
Mutual Life applied for $40 100000 of the first Eng
Iish loan Again, the New-York Life obtained
81 OOOO 600 of the recent English Exchequer loan,
which. with the German and the Russian railroad
subscriptions. gives total purchase Of Euro
pean securities this year of $lS,G000O0.
In common with other American insurance COM
panies, the New-York Life prerented doing
business in certain European countries because OF
the laws in those countries, which prevented in
surance companies from holding railroad securities
1t was decided by the New-York Life to meet
these requirements, and for year past it has &C
cording report been disposing of its large hold
ings Of railroad securities The proceeds of these
Of
countries in which it desires to do business.
The issue of the German Treasury bonds in this
country following quickly upon the successful
otation Of the British Exchequer loan, once
more impress the fact that the United States is
this moment the money lender Of the world and
that it possesses greater facilities than any other
country for extending credit
The latest foreign transaction will probably be
carried through without any disturbance of the
money market The Indications as has been
planned. that the entire operation will he
red through without the transfer OF gold. Ameri-
capital has already been put out in large guam
titles during the last year In Berlin and II will be
merely converted from its present form OF tenn
porary advances to the form of permanent loan.
Germany in fact, Will pay part of floating debt
by the sale of securities 10 America
Reviewing this phase Of the foreign exchange
situation. c. Schumacher & Co. said yesterday:
The demand for exchange came in fts and starts,
not much in cover OF merchandise imports as
for banking and financial transactions between this
country and Europe, chief among which Is the
placing here of the German Government loan OF
$20.000.Olo by syndicate of New York bankers.
our money market has felt the effect of the
cotton export movement TO any extent yet, but
II the decline In exchange continues. and II should
be found that Europe has no gold TO spare 10 send
here, what then? Must not In that sur
plus supply OF exchange be carried here and would
not this advance in money market
which in its turn. would further depress exchange
n point where banks would ind a profit in
carrying il? Just what that point is II II comes TO
that all. tell, but things look
present the tendency certainly is for higher money
and lower exchange.