New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-14
ALLIES WAR LOAN
ON SALE TO-DAY
Price to Public Is 90, Yield
ing Nearly 512 Per
Cent.
DIRECT CANVASSING
BY BOND statesmen
Point Made That Proceeds Will
BE Utilized Entirely
in America.

That portion Of the $500. 900. 900
Anglo-French loan which has not beer
withdrawn for investment is being
offered publicly to-day by the under
writer's. which approximate 300 in num-
her, az IS and interest, yielding nearly
So per cent TO the investors. In ad
t'tior 90 the countrywide publicity
campaign undertaken By the under
writer's 20 make the Offering a success,
they will be allotted in their efforts in
direct canvass by a small army Ct bond
sale men. The prospectus Of the loan
presents a mass of figures showing
facts concerning Great Britain and
France, which are summarized as FOL
lows:
The proceeds of the loan will be util-
lied entirely IN America by Great Brit
ain and France.
The bonds will constitute a direct
obligation Of the governments of the
United Kingdom Of Great Britain and
Ireland AID of the French republic.
Both principal and interest will be pay
able in United States gold coin in the
City OF New York. without deduct on
for any present or future tax of either
government. The loan is the only ex-
ternal loan OF the issuing governments.
Tho interest charge equals approx
mately one-eighth Of / per cent of the
combined annual income Of the people
Of the two countries, and amounts TO
only about = per cent of the total
revenues Of he British government
alone as estimated in the recently pro-
posed budget
In connection with the conversion
privilege. the prospectus notes that
during the last hundred years the price
Of British consols has varied from a
AZ per cent basis to a 212 per cent
basis, the equivalent, on the basis Of a
iifteen-year AZ per cent bond, to a
range of from par to over III. Dur
ing the twenty-five years prior TO July
30. 1914. French rentes sold uniformly
to yield 80 per cent or less.
Exports from the United States TO
Great Britain and France adds the
prospectus. amounted 10 $S37 ,534,l49
during the six months ended June 30,
1915. This period does not include the
heavy fall movement Of grain crops,
which ;his year promise TO be. both III
quantity and value, the largest In the
history of the United States. The
difficulty of financing a heavy export
trade balance through ordinary chan
nels has threatened seriously TO cur
tail the foreign demand for American
products. The essential object of the
loan is. by providing additional credits
in this country, to produce greater
stability in the rate of foreign eX-
change, and by this means 10 assist
American export trade.
THE estimated wealth of the British
people in 1914 was about SS5,OOO,OOO,-
600. The present debt, which approx
mates $4,000. 100000. including the en-
tire present issue of $500, 100000 rep
resents less than II per cent of the es-
timated present wealth of the British
people. whereas the national debt IN
1916 amounted to 36 per cent of their
estimated wealth at that time. Inter
est on this loan Of $500, 100000 equals
Only one-ffth OF per cent of the total
estimated income OF the British people
in 1914.
THE wealth OF the French people in
1914 was estimated at S50,0OO.OOO,OO0,
and their annual income at S6.O0O,O0O,-
GOO. Interest on this loan of S5O0,00O,-
coo equals slightly more than one-third
cf per cent Of the estimated total
annual income of the French people
I'm 1914. The total savings Of the
French people are estimated in normal
times at about Sl.000,000000. Their
ability 70 accumulate wealth was strlk-
ingly shown by the payment of en- IN
demnity Of 81 ,O00,000.000 within the
three years, following lS70-'7l. and the
investment of large sums abroad within
q few years thereafter.