The times. [volume] (Washington [D.C.]) 1897-1901, 1901-04-23
THE SALE OF BRITISH BONDS.
Fifty Million Dollars Worth Placed
i'm the United states.


NEW YORK. April 22.-Fifty million
/ dollars of Great Britains new loan has
been placed in the United States The
| National City Bank j. p. Morgan & Co
| Barring. Magoun & Co. and the New York
Life Insurance Company comprise the
syndicate that has taken the loan. full de-
tails of which were contained in circulars
| issued by J. p. Morgan e. Co today
American subscriptions will probably az
/ gregate much in excess of the $50, 600 0Ot
/ arranged for as the investment yield OF
| the new consols places the loan in the
| front rank of high class Government in
vestments. 1t was announced this after
noon that most of the loan had Teen
placed by the syndicate.
| OF the amount subscribed. the New
| York Life Insurance Company has bought
| outright 100000 of the new bonds. Be
sides this, it put in a separate subscrip-
1 tiOn today for IS. 900, 600 more, aggregating
as high bid as any American insurance
company ever put in for foreign Govern
ment loan. Speaking of his company S
| subscription, John A. Mccall, President
of the New York Life, said: I'VE have
bought the bonds because nothing in the
whole range of high-class investments on
| the market today surpasses the security
of a British consol at the price contracted
| for. The bonds have already gone to a
| premium in London, and may be depended
upon to go above par before long. For 81
corporation holding trust funds nothing
is so good as a Government bond, and
when you have Great Britain behind it,
! no one could ask for better security
1t is understood that besides the $50 00o,-
600 contracted for. syndicate members
"a -aral
millions more. This was done to provide
for the overflow subscriptions which
were expected as soon as details of the
loan were announced. The Mutual Life
Insurance Company was reported to have
subscribed for 100000 of the loan. but
at the company's office the rumor could
not be confirmed. In syndicate circles.
however, it was intimated that the COM
pany had put in such bid
President Stillman, of the National City
Bank. admitted that his institution, with
other members of the syndicate. had
taken 50. 900. 600 of the bonds.
The British consols offered in this coun-
try at 9i1z per cent, payable at various
dates up to December next. bear inter-
est at the rate of %. per cent per annum
up to April ), 1903, and afterward at ~
per cent per annum. The range of prices
in 1894 was $3.50 to l091.: in 1895, 103ss to
10S2s in 1896. l05ls to 1137s; in 1897 ITO to
~; in 1888; 1oSA to 1l25s; in 1899; s7z to
issue of the present loan, the lowest quo
tation this year has been 9i1z.
On the basis of the present issue. while
for the whole term of the bond latter
paying the present increased income tax
the investment only pays PSI per cent
during the hrst year. the holder will
ceive net 33s per cent on his money. be-
sides whatever rise in price results from
more settled state of affairs in South
Africa.
The Bank of EngIand's official circular
states that the bonds cannot be redeemed
until April ,, 1923. On and after that date
they may be paid off at par. Parlia-
ment may determine. Both capital and
interest are to be a charge on the CONSOLE
dated fund of the United Kingdom. Sub
scriptions will close on Thursday; before
should the Government desire. Applica-
tons must be accompanied by a deposit
OF t3 per cent.
Further payments will be required as
follows. G61E per centum on Friday, 18th
May. SO per centum on Tuesday, 18th
June; 80 per centum on Thursday nth
July; el0 per centum on Thursday, Sth
August. e10 per centum on Thursday.
9TH September: Els per centum on Thurs
day. 10th October; els per centum on
Thursday. 9TH November; Els per centum
on Thursday. 5th December Installments
may be paid in full on and after the 18th
May under discount, at the "a tie of G2A
per cent per annum.
The instant success of the Offering in
this country shows the existence of an
enormous fund awaiting investment In
financial circles the success of the nego-
tiations by American bankers to share in
the offerings was attr buted to Mr. Nor
gan's presence in Ii ldon and the ar
engagements under wa for some time to
organize a syndicate the instant details
OF the loan were announced. The loan
was offered simultaneously in the United
States today by J. P. Morgan & Co. Bar
ing, Magoun & Co, of this city: Drexel,
Morgan & Co. at Philadelphia, and Kid
der. Peabody a Co, at Boston.
Sterling exchange reached the gold ex-
port point today ruling at 1881 for most
transactions. This is the figure at which
the last gold shipment was made.