The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-16
WAR BONDS GO UP
ON MORGAN REPORT
Price Rises From 81 1-8 to
95 1-2 as Taking Of $780,
100000 Is Made Known.
VIEWED AS BIG SUCCESS

J. p. Morgan 4 Co., agents for the r
mage Of tho s5oV.ooo.ooo Anglo
French 6 per cent. loan. announced yes Z
to-day that up to the time Of the expira- :
lion OF tho syndicate at midnight Tues ,
day more than so per cent. Of the entire ]
amount OF the bonds purchased BY the :
syndicate had been taken for investment !
When Wall Street learned thai 10
large an amount OF the bonds had been
taken for investment II was generally
oonoeded that the loan had been a sue
cess. IT was pointed out that tho oner-
,us was made under unusual and trying
conditions; that II was the hrst Dig
foreign loan ever placed In this country.
and that II was made to two nations
amazed In the greatest war which mas
ever bsen waged. Further. II was en-
phasized that tina people OK the United
States do not take kindly TO foreign
loans, and this one mot with all tho
opposition which Il carefully planned pro
German campaign could bring against II.
Following the dissolution OF the syndi-
cate automatically at midnight TUESDAY
the bonds sold down to a new low record
price Of ?its, seller thirty. $4,000 worm
changing hands at that figure. This was
before the announcement by j. p. Nor
gan & Co. OF the success OF the loan'
however. and from that time until the
CLOSE of the market the prices were
generally higher. Tho last sale was
$4,000 worth at s4As. after q rally
which carried them UP to 95h.
Statement by Msrgan 4 On.
The statement issued by J. p. Nor
ran & Co. was as follows:
'sThe managers OF the Anglo-French
$500, 900. coo External Loan Syndicate
state that. within the sixty day lie OF
The syndicate which expired yesterday.
over SO per cent OF the bonds purchased
by the syndicate were taken for invest
,nent. OF the bonds so bought for In
vestment, the larger part was naturally
taken by the participants who Joined
the syndicate with the Idea or !mmedi-
ately withdrawing their bonds and thus
obtaining the benefit OF the syndicate
price.
The size OF the transaction naturally
brought In cas- syndicate subscribers),
a large number Of actual investors.
Consequently, with so many large In
yestors already out OF the market, the
sales made by the syndicate upon the
public Offering were bound to be In small
units and thus to a limited aggregate.
the amount of cash which the syndicate
managers are distributing to those who
did not Withdraw their bonds for In
vestment amounts TO between 10 per
cent. and IL per cent. oc the amount
OF the p~artic.pations
1T must be remembered that the
smallest unit In which the bonds are
issued ia 500. The managers will ac-
cordingly distribute 20 the nearest unit"
Although no official statement; was
49, 49, n .~, q -
the exact amount of the bonds taken by
the syndicate for investment II was gem
orally conceded In Wall Street that about
$3.50. 900, 600 had been disposed OF In this
manner at .6t. The syndicate also sold
approximately 10000 900 Of the bonds
20 the public at IS. leaving approximately
$50. O0O, oo0 To be taken by the under
writer's. In other words, those members
" the syndicate who did not withdraw
the amounts Of the bonds taken by them
until the expiration of the syndicate vii
get between SO per cent. and go per cent
Of their original subscription.
record Never Eaualled.
u was pointed out by bankers inter
ssted in the loan that a great number o.
investors saw 1T to become syndicate
members and obtain their bonds at s6l4
Naturally, after this opportunity expired
q 'Ntl' Btis'iA' WIN
cl,ned to purchase the bonds refused t
do so at %. holding that they could ge
Them at a cheaper price after the ex
piration Of the syndicate.
Notwithstanding that the loan has no
a. set been placed as a whole with Ia
public, bankers say the sale OF 100000
600 OF the bonds constitutes "A rccor
never eaualled by a bond issue In thi
country since tbs civil war. The Anglo
French loan was larger than any piec
~ financing ever attempted by IN
United States Government since 1856
Even the sale of the s515.00o.0oO 8 pc
cent. bonds which our Government AZ
,horized Ia 1859 and which was mad
when popular feeling In the North wa
running high was extended over
period Of many months. The SPANS
war loan was only for $500. 900, 900. \
railroad corporation has ever attempte
TO aoat a loan at one time for moi
thar 500. 900. 900.
One OF the surest indications that q
banks and trust companies In the cou'
try believe In the loan IL that they a
willing to lend up TO 80 per cent.
the market value OF the bonds. This
approximately what local institutions a
accustomed TO advance on railroad BON
Of the best grade.
Trading in the Anglo-F'rench bon
was heavy yesterday, approximately ii
0OV,oOO OF the Donus cNafsiHy naHus
prices ranging from e4is to 80 u. Ira
'ng In these bonds constituted near
one-half of the total bond market ~ {
dsy. which was exceptionally large, 5
Ola, 900 par value of bonds chang!I
hands.
]. p. Morgan & CO. as agents for I
syndicate managers will send out
night the profits of the Offering to t
syndicate members as we'll az the
bate or IA, per cent, obtained by tho
who became syndicate members and 6
their bonds at 96h although paying
Sor them at tho time the syndicate W
formed.
The bond departments OF the yar!o
big banking Institutions OF the city
ported an excellent demand for tn,
ponds yesterday at the lower figures.