Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-07-22

and naive enough to be reminiscent Of the
monkey house at the zoo. So when they
were told they were going TO see the great
white man at buckingham palace they
showed no interest or concern. Nor do
they apparently have much respect for the
chief OF their tribe, for they were not at
all impressed by being told they were going
10 the kraal OF the great White chief. IL
may appear very uisrespeetiul To the king,
but an Idea or his greatness could only
DE conveyed TO their minds by picturing
him as the head of the ape tribe. The
pigmies have probably suffered from the
strong and predatory apes that inhabit
their forests. whom. indeed, they resemble
in many ways. and, fearing an attack from
the chief OF the trine, they took their bows
ana arrows with them 10 the palace. Those
weapons they never allow TO leave their
sides, for, although they are becoming ac-
customed to London by now, they wish 10
be prepared for any emergency, and print
tive man was always on the lookout for
attack, Since arriving here they have been
In good health. perhaps the best evidence
OF their condition being a steady fondness
for hard-boiied eggs.
There is now going on keen competition
among financial houses in the city to secure
a participation IN the underv riting of the
forthcoming Japanese loan for f30o3o,0o0,
the commission being. 1t Is understood, i
pet cent 1t is believed that. as already
fores hadowed. the loan will bear AZ per
cent interest, and be issued at 30. being the
same price the last Az per cent loan,
which has first charge on the receipts
from the tobacco monopoly, and Is quoted
az 913, including roughly fl of accrued in
terest. No sort of doubt is entertained as
to the cordial nature of the reception the
issue will meet with here and in America.
There have altoge her been five issues of
japanese g per cent internal eXcheQuer
bends to an aggregate amount of roughly
4I0.ROoG0 yen. Until quite recently they
have remained wholly in native hands, but
they have now been introduced to the Lon
= - e., t. N
fourth and fifth series. The former are be-
ing dealt in for cash and the account and
the present price is 94A, the net price being
81, allowing for 3A per cent interest. pay
able in December and the fifth series is
quoted at 9lts for the special settlement
in September or October. The next coupon
Gil per cent? is payable in March next on
this series. which is rerayabe at Ear with
in seven years, and assuming redemption
to take place in 1912, the yield, allowing for
the premium, works out at about tx per
cent per annum.
The changes are that the bonds will be
paid off before their full date of maturity,
as it is clearly the intention of the govern
ment to get rid of the incubus of so high a
rate of interest as soon as possible ms
1t will have no difficulty in doing as soon as
peace Is restored and measures can be
taken to give effect TO its financial plans.
ctief among which are the conversion and
consolidation of the national debt.
1t will. of course. be obvious that there
IS certain element of risk about the In
terral loans from which the external debt
l.; fee This consists chiefly in the POSSIBLE
ity of a proongation of the war and a re-
sulting disturbance of the finances of the
country which might involve a deprecia-
ton of the currency in which both the in
terest and principal of the internal bonds
are Cayable.
Needless to say that. but for this risk,
there would not be the great disparity
(about II per cent? between the valuation in
tie market of the internal and external
loans. The question for investors is as to
whether this Is a reasonable measure of
the difference of the risk incurred by an in
vcstment in one other of the two cate
gories. BY giving the higher price for ex-
tcrEal per cent bonds, which are quoted
at about JOB, investors are paying what
Genes to be a heavy insurance premium.
Whether it is too heavy depends on the
CHARGE of a speedy peace or an indefinite
prolongation of the war.
L. H. MOORE.