The times., 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 Britain's new loan has
/ been placed I'm 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 & Co. today.
American subscriptions will probably ag-
( gregate much in excess Of the $50, eco OCo
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 $5.OO0,O0O of the new bonds. Be
sides this, it put in a separate subscrip-
tion today for IS, 600 600 more, aggregating
as high a bid as any American insurance
company ever put in for foreign Govern
ment loan. Speaking of his company 5
subscription, John A. Mccall, President
of the New York Life, said: 1--WE have
bought the bonds because nothing in the
whole range of high-class investments on
the market today surpasses the security
of 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 a
corporation holding trust funds, nothing
is so good as a Government bond, and
when you have Great Britain behind 1T,
no one could ask for better security
1t is understood that besides the $4,000
600 contracted for. syndicate members
have put in provisional bids for several
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 IS. 900. 900 of the loan, but
at the companys office the rumor could
not be confirmed. In syndicate circles.
however, it was intimated that the COM
pany had put in such a bid.
President Stillman of the National City
Bank, admitted that his institution with
other members of the syndicate, had
taken $50. 600 900 of the bonds
The British consOls offered in this coun-
try at 9412 per cent payable at various
dates up to December 5 next, bear inter-
est at the rate of ga per cent per annum
up to April ). 1903, and afterward at 21a
per cent per annum. The range of prices
in 1894 was 9S$s to 10S15; in 1895, 103$s to
10S2s; in 1896, 1051s to 1l37s i'm 1897. 10 TO
ia; in 1898, l0S5s to 1125s; in 1899. 91& to
11112: in 1900, 96al to 1924. Pending the
issue of the present loan, the lowest quo
tation this year has been 9iI2
On the basis Of the present issue. while
for the whole term of the bond tafter
paying the present increased income tax)
the investment only pays 2S1 per cent
during the first year. the holder will re-
ceive net 33s per cent on his money. be
sides whatever rise in price results from
a more settled state Of affairs in South
Africa
The Bank of EngIands official circular
states that the bonds cannot be redeemed
until April D 1923. On and after that date
they may be paid oft at par, as Parlia-
ment may determine. Both capital and
interest are to be charge on the cOnsoli-
dated fund of the United Kingdom. Sub
scriptiOns viii close on Thursday; before
should the Government desire. Applica-
uons must be accompanied by deposit
OF &3 per cent.
Further payments will be required as
follows. G65E per centum on Friday, 18th
May, SO per centum on Tuesday, 18th
June; $40 per centum on Thursday, llth
July; &lO per centum on Thursday. Sth
August; Gl0 per centum on Thursday,
5th September; &15 per centum on Thurs
day. 10th October, Gl5 per centum on
Thursday. 1tb November; 915 per centUm
on Thursday. 5th December. Installments
may be paid in full on and after the 18th
May under discount, at the rate of &2&
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-
tidtions by American bankers to share in
the offerings was attributed 10 Mr.. Nor
gans presence in London and the ar
rangements under way 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 q Co, at Boston.
Sterling exchange reached the gold ex-
port point today, ruling at 4SS12 for most
transactions. This is the figure at which
the last gold shipment was made.