The Washington times., 1915-12-16
WAR BONDS GO Up
0N MORGAN REPORT
AngIO-French Loan Viewed As
Success When Announced
$780, 900, 900 Purchased.


NEW YORK. Dec. Is.-J. p. MORAN
e Co.. agents for the managers OF ths
OOO'OooOOo Anglo-French per cent loan.
announced that up TO the time OF the
expiration OF the syndicate. at midnight
tuesday. more than 90 per cent Of the
entire amount Of the bonds purchased
oy tne syndicate had been taken for In
vestment.
When Wall Street learned that 20
large an amount OF the bonds had been
taken Tor investment It was generally
conceded that the loan had been q sue-
cess. 1t was pointed out that the Offer
ing was made under unusual ana tTyinR
conditions; that II was the 6rat hlE
foreign loan ever placed in this countpV.
and that It was made to two nati6ns
engaged in the greatest war which has
ever been waged. Further. it was en-
phasized that the people Of the United
States do not take kindly TO foreign
loans, and this one met with ali the
opposition which q carefully planned
proIGerman campaign could bring
Following the dissolution of the syndi-
cate automatically at midnight Tuesday
the bonds sold down 70 a new low rec
worth changing hands at that 6eure
| This was before the announcement by
J. p. Morgan & Co. Of the success OF the
loan, however, and from that time un
were generally higher. The last sale
was $4,000 worth at 9lsk, after a rally
| which carried them up to 951k.
Statement By Morgan Go
The statement Issued by j. r.. Nor.
| gan & Co was as follows:
'"rhe managers of the Anglo French
100000 External Loan Syndicate
state that, within the sixty-day life OF
the syndicate which expired yesterday,
over so per cent OF the bonds purchased
by the syndicate were taken for invest-
/ ment. OF the bonds SO bought for iIr-
vestment. the larger nart was naturally
taken by the participants who ,ioined
| the syndicate with the idea of inan1edi-
ately withdrawing their boids and thus
obtaining the benefit of the syndicate
| price.
The size of the transaction naturally
brought in Gas syndicate subscribersO,
1 q large number of actual investors
Consequently. with 80 many large in
vestors already out OF the market. the
public offering were bound to be IN
small units and thus to a limited agRFe-
gate. The amount of cash which the
syndicate managers are distributing t"
bonds for investment amounts to be
| tween 10 per cent and II per cent nf the
amount of the parfici7stions.
''It must be rernenbere1 that the
smallest unit In which the bonds a"e
issued is $160. The managers will 40
cordingly distribute TO :he nearest
Although no ofscia, statement wsE
made by ]. p. Morgan & Co. concern
ing the exact amount of the bonds
taken by the syndicate for investment
was senerbsllyt sss sncsdsS c @ IN %SI Sscn
disposed of in this manner at 96lt. The
| syndicRte also sold ,approNinate SAC :
o00.01o Of the bonds To- the public At ss.
taken bv the, underwriters. In oti'Ff
words. those members OF the syndicate
| who did not withdraw the amounts or
the bonds taken by them until the e; e. .
tween 50 per cent and 20 cerr cent ot
their original subscription.
Record Never Equaled.
1t was pointed out by bankers inter
ested in the loan that a great number OF
investors saw At to become syndicate
members and obtain their bonds at 961A.
Naturally, after this opportunity ex-
pired, many other persons who might
be inclined to purchase the bonds re-
fused to do so at .9S holding that they
could get them at a cheaper price a1eer
the expiration of the syndicate.
Notwithstanding that the loan has not
as yet been placed as a whole with the
public bankers say the sale or $S1O.UOO :
COO Of the bonds constitutes record
never equaled by q bond issue in this
country since the civil war. The An
glo-French loan was larger than any
piece of financing ever attempted by the
United states Government since 1Nh.
Even the sale of the S6lS, 100000 per
cent bonds which our Government au-
thoriKed in 1862 and which was made
when popular feeling in the North Wae
running high was extended over perloo
was only for 100000 No railroad
corporation has ever attempted to noai
a loan at one time for more than 3oO'
100000
banks and trust companies In the coun-
try believe in the loans is that they are
willing to lend up to 80 Der cent o.
the market value of the bonds. This -
approximately what local inSdtrtlons
are accustomed to advance on IalAroA0
bonds OF the best grade.
Grading In the AnRlo-Erennh bonds
was heavy yesterday, approXfnlattnk
SSOOO.OOO of the bonds chanetns , hanSs g
ing IN these bonds continued neariS
one-half OF the total bond market OF the
day which was eXceptionAuy large
S7.6isOOO par value OF bonds chAnEinE
p Morgan & Co. as agents for th'
syndicate managers will send out 70.
night the prOhts OF The otIeriDR TO tht
syndicate members as well as the re
who became syndicate memberB ahC
got their bonds at S6A, although paYinf
IS for them at the time the syndicate
The m bond departments OF the various
big banking institutions OF the city 70
mort an excellent demand for theS'
bonds at the lowest nRures.
Colonial School Girls