The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-15
Drop IN Anglo-French
Bonds Laid TO Germans
London Malls Correspondent Estimates $3.50 100000
Of Issue Remain to Be Taken Up by Syndicate,
but Fears No Serious Break in Price.
SEES NO CHANCE NOW TO FLOAT FRESH LOAN

total bonds Withdrawn by syndicate
participants for investment. plus the
bonds distributed to the actual public.
will aggregate about 1920. 600. 900,
leaving the syndicate to handle S1s0.OO0.-
OOo. This outcome Is Il disappointment.
but not severe one. The members of
the syndicate from the start were aware
that the American public as a whole
would buy a comparatively small guam
atty OF bonds and accordingly based
their participation largely upon the
amount each was willing to pay TO
take UP.
Expects Scattered selling.
Members OF the syndicate. which is
mad" Up of leading bankers and inuni-
tons manufacturers who have enjoyed
OF will enjoy large profits from the
allied Governments, went into the 'yndi-
Gaze heavily not only to protec. ex-
changes and thus assist Am.ro,'s ex-
port trade, but TO help definitely the
allied cause. This motive still holding
true. 1t Is difficult to believe that the
syndicate participants, having faith in
the intrinsic value ~ the security, will
now turn around and defeat their own
objects by dumping the bonds on the
market.
There will be IA good deal of scattered
tnt next lew nuN !
anticipate that most Of the large blocks
will. be held fairly intact Moreover.
any fall Will attract fresh investment
buying. The bonds are of such short
maturity that a one point decline means
adding approximately one-quartcr of I
per cent. interest yield.
II understand that II IL the plan OF
the syndicate organizers to carry on a
caiSpaign Of education on behalf of the
~ 60.
the syndicate. VI IL almost impossible
for Englishmen to conceive TIE nove'ty
foreign loan IL TO the American public
or the amount OF work necessary to
establish real permanent market for
English and French securities on n large
scale.
'All this means. of course. that there
is no possibility Whatsoever that IN.
allied Governments will he able ~ place
here fresh loan. at least tor several
months. Isolated loans against Amer!-
can securities AZ collateral. bankers
credits. g., will continue to be wei
coined, bu; Il mus: he a long time be-
fore the Anglo-frcnch loan Is so alb
sorhed by the American public az TO
permit another similar operation such
a time will come only when the pr-sen,
loan gradually works back not only to
the .ssue price of ?s hut well above tina
figure. and when the real ueman.l here
for the security is thus proved to exist
Incidentally n must he remembered
that in the eyes OF Americans our mill
tary operations have not been going well
and this view has prejudiced the loan
greatly. As one OF the leading Ans rcie RS
said 10 mo to-day:
Your Government was fortunate
enough %st October to arrange for n
successful drive. temporary AT any rate
upon the western front. This came AZ
| the psychological moment 20 assist us
| IN forming our syndicate to handle your
| bonds. 7 wish your people would now
he eori enough to arrange for a few
move successful operations. so as &c
enable Us to distribute these bonds n
| the American public"