The Birmingham age-herald., 1915-09-29
:. P. Morgan & Go. Heads American Syndicate That Will Handle Notes on 2 Per Cent Margin
DECIDES TO PARTICIPATE IN
 BIG TRANSACTION
largest External Loan Ever Negotiated in the U. $. Chicago Bankers Receive
 News With Cheers

New York. September 2s-The Anglo rench financial commission announced night that the proposed credit loan to -eat Britain and France would be $500, : 1000 and would be issued on joint Anglo 'eneh five-year per cent bonds. of red to the public at sS, and to the syndi- te of underwriters at 96
 It also was announced that the bonds puld be issued in denominations as low $1o0 and that subscribers might pay r them in installments
 The bonds, issued at ss, will yield ap- oximately 51s per cent to the investor brmation of the syndicate has been left J. P. Morgan & Co and "a large group
 American bankers and financial uses At maturity the bonds will be yable in cash or convertible Into Az in rest Anglo-French bonds redeemable om 10 to 20 years thereafter by the two Pvernments jointly and severally.
 Sir Henry Babington Smith. member the commission, made public the an- uncement. Sir Henry said that an entical statement will be made public night in Chicago by Lord Reading, airman of the commission, who with rec other members is confering with estern bankers there The statement hs issued here in the name of Lord eading.
 Russia to Participate
 It was announced that Russia would rticipate in the loan.
 Henry P. Davison of the firm of J. v organ & Co. issued statement on be- tiff of his.ffrm, which said fiiut the cUns' ission had made plain that 1t had de- rmined to recognize investment coTdi' bns in America.
 It proposes to meet these conditions. i'd the statement, 'by issuing an obli- htion which is without precedence hmely, the joint and several promise tc ky of Great Britain and France. Te is it has attached terms to which mear yield to the investor of about 5h pel nt and carry with them conversion ivilege calculated. upon the return o1 primal conditions. to prove of distinc alue to the holder of these bonds.
 The interests of the small investor ar, so consulted in the decision to issue tnt bnds in denominations as low as $i0 ad to allow subscribers to make install ent payments.
 .'It Is proposed by the commission lat the proceeds of the loan bs andled so as in no way to disturf ar own money markets and to that nd the general plan will be to leav' he cash realized from the bonds or sposit with banking institutions hich become members of the syndi hte throughout the United States his proposed loan may in fact be con dered as an arrangement made b! merican commercial and agriculture hterests with their regular customer accept deferred payments covering pmmodities purchased.'
 Two Per Cent Margin
 The ? per cent margin between thu rices at which the issue will be of bred to the public and the syndicat' Till reimburse members of the syndi hte,. it Is contemplated, for their ex enses in placing the loan on the mar ct.
 To bring the great offering-th, krgest of its kind ever placed in tn, nited States before investors throughout the entire nation the eoun ty will be divided into districts o ones and to each district there vii delegated a subcommittee of thu vndicate managers, composed of tn nbscribing banks and trust companie kithin the districts Thus at financia enters a committee of the banks Il hch city or section will have direc
 <~R nf Vk ecurities among investors residing fl heir districts.
 The subcommittees will work simul hneously and will report to the gen ral syndicate managers, who will b bcated in New York. The five-yea onds, principal and interest. will D ayable in New York. It Is possibl hat the interest will be payable fl ther cities-this detail with man thers is yet to be decided on.
 In order. however. to comply wit Regulations of New York exchange lew York city will be designated . he place of payment upon. maturit,
 Ready Endorsement Expected
 Parliamentary ratification of tn Jan 10 necessary in the case of bot Ireat Britain and France. but mem |ers of the commission believe that in oroement will be obtained wtthou ificulty. The commission has been 1 onstant communication with bot Paris and London and details as { rogress made have been placed be ore the treasury authorities at bot Apitals from day to day.
 A great many details, Davison sai> |re yet to be formulated as tp tn hethbd which the syndicate will pul oe. The first step to be taken is tn nrmation of the syndicate by the Mor elis and other American bankers an nanciers. Davison said that . large number nnko throughout the country had oi6 |fled tl1oir approval of the proposed cred bd doubtless would be invited to 1oiIf tl n1icx te. He declined to nams the hank 1oertlne he would make public tho lii
 ito' 6<tiioty later. How mudh of th y6Q6oo which VIII be cDtained hol
 to Go for tho credit Of Hrauoo all oW much for. the credit of HnoiepA wel ot G1Vu1god. 7, 'sVghcn t0o ereet na3lons 1oon h et ;,r noofttn1&3 o( f6fe l1ge if 1G 5jtIy f