The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-09-29
Bonds Are to Be Sold to Syn
dictate at 9612 and to Inves-
tors at 80
PROCEEDS WILL ALL
REMAIN In AMERICA
Will Be Used to Stabilize Ex-
change and Will Cover Bills
Drawn for Munitions as Well
as Other Export Products

New York. Sept. 2s.--Formal an
nouncement of the agreement of Amer
lean financiers to furnish s5oo.ooO.o0o
whereby foreign exchange between the
United States and England and France
Is to be maintained ABNORMAL figures.
was made tonight At the Hotel Bit
more. by Sir Henry Darlington Smith,
member of the Anglo French mission.
1t came In the form of statement
from the Lord Chief Justice of Eng
land, Baron Reading. who Is now in
Chicago.
The announcement which was sup
plemented later by a statement from
j. r. Morgan & Company sets forth In
brief:
AN underwriting syndicate OF bank
ers and individual financiers from all
sections of the country Is TO supply
a credit to the two countries of sisn,-
100000 which IL to remain In the
United States to be utilized solely for
the purpose of keeping the foreign ex-
change at the normal price.
In return the two countries are to
issue join. and several bonds due in
FIVE years bearing per cent for the
full amount Of $500. 100000.
Price to Iayestors Us.
The price At which the bonds are
to be sold to the Investor will be 80.
and the price at which the syndicate
Is TO receive them IL es Ia, making
the interest return to the investor
about $50 per cent. the return to the
investor being $4,000 900 and the COM
mission to the syndicate being s1o.-
600. 900 more.
The statement Of Lord Reading was
Il am now In a position to make an
announcement as to cur proceedings:
The discussion between the Anglo
French financial mission and the Amer
lean bankers have res0ssed In the for
nation OF definite plan for loan
to the British and French govern
ments, to be issued in this country on
a broad and popular basis. The pro-
ceeds or the loan will be employed ex-
clusiveiy in American, for the purpose
of making the rate of exchange more
stable. thereby helping to maintain the
volume of American exports.
Five Year Bonds.
The plan contemplates that issue OF
$500, 600, eeo five year i've per cent bonds
constituting a direct point and several
obligation of the British and French
governments. as regards both capital
and interest. No other external loan
has been issued by either of these gov
ernments apart from the notes of the
maturing within the next six months.
The bonds will be repayable at the
end of Ave years or convertible. at the
option of the holder. into Ia per
cent bonds of the two governments.
fepayable not earlier than Is years
and not later than twenty Ave years
from the present time by the two gov
ernments Jointly and severally.
Mer9an Heads Syndicate.
public at IS. yielding approximately
IL per cent to the investor. The
work of offering this loan will be
carried out by syndicate which
Messrs. ]. p. Morgan & Company and
a large group of American bankers
and financial houses will at once set
about to form. Such group will in
clude representatives throughout the
country. and all members OF the syndi-
cate Will be precisely on the same
footing This syndicate whose bus
mess il will be to arrange that every
investor shall have an opportunity to
subscribe to the loan. will contract
to purchase the loan from the govern
ments at ss IL
The Morgan statement which came
later as a supplement and explana-
tion OF the situation from the Ameri-
can viewpoint WAS as follows:
Two Governments to Sign.
The commission has made plain by
its statement that II has determined
at the outset to realize investment
conditions In America. It proposes to
meet the conditions by issuing an OBJ
legation which is without precedent,
namely, the just and several promise
to pay of Great Britain and France
To this ii has attached terms which
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