New-York tribune., 1902-04-27
BRITISH .CONSOLS HERE.
IMPORTANT ARRANGEMENT MADE BY
THE NATIONAL CITY BANK.

Following the publication only two or three
days previously OF the decision OF the directors
Of the National City Bank to recommend 10 the
stockholders that the capital stock be increased
from SO 600 600 to S23. 100000. and the surplus
from 81 800 600 to S15 100000. an increase which
II Is understood made necessary by the
rapid extension Of the banks foreign business.
the important announcement was made yester-
day Of an arrangement by the National city
Rank through which a market Is for the first
time TO be made here for British Consois. Here
tofore the difficulties OF trading In n foreign
market and basis Of foreign currency
and the fact that the British Government gives
TO the owners Of registered consois no evidence
Of ownership other than the inscription on the
books of the bank. have prevented consols from
being dealt in here.
BY the method described In the National City
Ranks circular however. It Is believed all these
difficulties will be obviated. the bank having
perfected arrangements for issuing to Ameri-
can investors its own certificates. representing
consols acquired by Ii.
The conso!s against which the certificates Will
be issued will be registered on the books of the
Bank of England in the joint names OF the
Union Bank OF London and Barring Brothers d
CO. Limited (of which latter company Lord
Revelstoke a director Of the Bank OF England. Is
a directory, and be disposed OF only on the
toint order OF the National City Bank and the
Farmers Loan and Trust Company, OF New
York.
Interest on the certificates will be paid in cash
by the National City Bank on the days on
which interest payments are made by the Brit
tsh Government; the amount of the interest
payment here exactly equalling the interest PAID
on the consols when converted at the market
rate Of sterling then prevailing, less any income
tax which may be imposed. The cOnsos bear in
terest at the rate of "a per cent yearly to
April g. 1903 and at 212 per cent Thereafter
until April g. 1923. when they become subject
20 redemption.
In setting forth reasons why investment here
IN certificates based upon consos is advan-
tageous the circular says:
The character of the security will rank next to
United States Government bonds, while the rate
OF return when compared with that received on
government bonds here. at present prices; Is dls-
tinctly in favor OF the English security In some
respects consos offer decided advantage over
our own government bonds, as the market lor
them in London Is much broader than Is our gov
ernment bond market here. and under no condl-
OF financial disturbance has 1t ever been
London Stock Exchange. 1t is cardinal principle
OF British finance that the Bank OF England VIII
always loan to its clients upon consols as collateral
security and that fact gives them such desirable
position In the English financial world that
market there can always be relied upon with abso-
lutte certainty The National City Bank recon-
mends these consol certificates as an investment
where the highest form of security is desired
such an investment will prove peculiarly attractive
TO banks for the reason that II Will provide them
with means for carrying part of their reserve at
a rate of interest considerably higher than now
received by them on their balances In reserve
ena hing them at any moment. without relation
to financial conditions prevailing IN the United
States TO command a credit in London, which can
always be made Instantly available here by the
sale of bills of exchange. or which can be used 10
acquire gold in the English market for importa-