The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-10-02
BIG LOAN IS SECURED.
COMMISSION AN.
NOUNCES TERMS OF HALF
BILLION CREDIT.
Five Year Bonds Issued at 90 Will
Yield Nearly 5 1-2 Per Cent. and
Will be Convertible Into Joint Brit
ish.Frcnch Securities at Maturity.

! New York, Sept. 2S.-The Ang
French financial commissioners an,
nounced tonight that the proposed
credit loan to Great Britain and
France would be 100000, 900 and
would be issued on joint Anglo
French five-year 5 per cent. bonds,
offered to the public at SO and to the
syndicate of underwriters at 90.
! 1t also was announced that the
bonds would be issued in denemina-
tions as low as 500 and that SUBJ
scribers might pay for them by in
jstallments
The bonds, issued at SO, will yield
approximately 1-2 per cent. to the
investor. Formation Of the syndicate
has been left to ]. P. Morgan & Co.
and "a large group Of American
bankers and financial houses" At
maturity the bonds will be repayable
in cash or convertible into 1-2
|per cent. joint Anglo-French bonds
lredeemable from 10 to 80 years there
after by the two governments jointly
land severally.
Sir Henry Darlington Smith, a
lmember of the commission, made
public the announcement. Sir Henry
lsaid that an identical statement would
be made public tonight in Chicago
by Lord Reading, chairman of the
lcommission, who. with three other
members. is comforting with Western
bankers there. The statement was is
isued in the name of Lord Reading.
1t was announced that Russia
would not participate in the loan.
I Henry P. Dawson of the firm of
~. P. Morgan & Co., issued a statement
ION behalf Of his firm, which said that
1.-THE commission had made plain that
1T had determined to recognize in
Ivestment conditions in. America.
| lit proposes to meet these condf-
tions," said the statement, ,"by issuing
Ian obligation which is without prece-
ldent, namely. the joint and several
promises to pay Of Great Britain and
France. To this it has attached
terms which mean a yield to the in
vestor Of about 5 1-2 per cent. and
carry with them a conversion privi-
llege. calculated, upon the return of
normal conditions, to prove of dis
tinct value to the holder of these
bonds.
'The interests Of the small investor
lare also consulted in the decision to
issue the bonds in denominations as
low as 500 and to allow subscribers
to make installment payments.
'lt is proposed by the commission
Ithat the proceeds of the loan be
handled so as in no way to disturb
Jour own money markets and to that
lend the general plan will be to leave
1.-THE cash realized from the bonds on
deposit with banking institutions
(which become members of the syndi-
cate throughout the United States.
lThis proposed loan may, in fact, be
considered as an arrangement made
by American commercial and agricul-
ltural interests with their regular Gus
tomers to accept deferred payments
Towering commodities purchased"
The 2 per cent. margin between
the prices at which the issue will be
toffered to the public and the syndi-
lcate will reimburse members of the
Syndicate, it is contemplated, for their
texpenses in placing the loan on the
market.
TO bring the offering-the largest
Ibf its kind ever placed in the United
IStates-before investors throughout
the entire nation the country will
be divided into districts or zones and
to each district there will be dele
gated a subcommittee of the syndi-
cate managers, composed of the SUBJ
scribing banks and trust companies
within the districts. Thus at financial
centres a committee Of the banks in
each city or section will have direct
charge of the work of marketing the
securities among investors residing in
their districts
! These subcommittees will work
simultaneously and will report to the
| Iopnarn1 81
be located in New York. The five
year bonds, principal and interest,
VIII be payable in New York. 1t is
possible that the interest will be pay
able in other cities; this detail with
many others is yet to be decided up
on.
In order, however, to comply with
regulations of the New York ex-