The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-14

i"e S'V"'VVV ,uO0 AnElu-FrenCh . per
cent. loan was virtually offered to Amcri-
can investors last night, the prospectuscs
going out from the banking and bond
houses to be delivered to their clients
In this mornings mail.
~ was reported In well informed bank
ing circles yesterday that only about
100000, 600 of the $500. 900. 900 would be
offered to the public as the bond houses.
banks and other syndicate members were
said to have withdrawn nearly $500. OOO,-
600 for investment on their own ac-
count. This, however, could not be con-
hrmed at the offices OF J. T.. Morgan &
Co. where 1t was said "a statement on
That score might he made at "A later
date.
Contrary to all expectations. TIE loan
agreement was not signed last night, by
the syndicate members. Lord Reading,
chairman Of the Anglo-French commits
sion. spent the day in Washington. AMI
IL Is believed that his inability to return
Ill time prevented the formal signing of
the papers. This will probably take
place to-day. either at the Biltmore or
ut the Offices of j. p. Morgan & Co.
IL has not been decided yet whether
j. u. Morsan q Co, as agents for the
underwriting syndicate. will be tie only
signers for this country. or whether the
entire New York syndicate will sign. II
is understood To he Mr.. Mo- sNn's desire
that all the New York banks and bank
ing houses In the syndicate sign tho
agreement.
To he convertible.
Tn" Anelo-Frcnch bonds. which will
bear interest at the rate of ) PEI cent.
VIII he offered TO investors at 9S and
interest. yielding nearly ST., per cent
They will be coupon bonds in dcnomina-
tons of sl0o, $500 and $1,000. which
may he registered as to principal. There
VIII also be registered bonds in denom-
i~nations Of $1,000. $4,000 and $50. 600
and authorized multiples.
me bonds are convertible at the
option of the holder on any date not
later than April Is. 1920. or provided
that notice be given not later than
April Is. 1890 at maturity. par for
par. into 1875 year joint and several
iia per cent. bonds Of Great Britain
and rance. Such bonds will be pay
able. principal and interest, in United
States gold coin in New York city. free
from deduction for any present or
future British or French taxes. and will
mature October IL, 1910. They will be
redeemable, however, at par and accrued
interest, in whole or in part. on any
interest date. not earlier han October
10. 1880. upon three months notice.
The prospectus says regarding the
bonds which nave been withdrawn for
investment: "a large amount Of these
bonds having already been withdrawn
for investment. we. whose names APP
pear on the following pages. offer on
behalf OF "A c,A,ntry wide group of in
stitutions and bankers. the unsold
balance. subject to prior sale and
change in price" Payments may he
made either in full on October 80 or, at
the option of the purchaser. 50 per
| cent on that date and the balance on
December 3. The temporary bonds will
be ready for delivery on or about octo-
Der 80, cxchangeable for the dehnitive
bonds when prepared.
Insurance Funds Not barred.
1t Is stated in the prospectus that
the interest charge on the $500, oOo,O 600
issue is equal To approximately ', of !
/ per cent. Of the combined annual income
Of the people of Great Britain and
France and amounts to only about ~
per cent. of the total revenues OF the
British Government alone. as estimated
In the recently proposed budget.
Jesse :. Phillips. State Superintendent
| of Insurance. yesterday issued a state
ment saying that all insurance COM
, panies Incorporated under the laws OF
| this state OF doing business under the
Jurisdiction Of the department In this
states may invest in the loan provided
they are doing business In European
countries. Mr.. Phill,ps's statement In
part was az follows:
The law provides. in general, that in
| s1rance companies organized under the
laws of this state are limited to the
Investment of their assets In domestic
| securities, including Federal. state ana
! nunicipal bonds and the bonds Of solvent
corporatlons organized under the laws
OF any of the States of the United SIates'
| Such insurance corporations are not per-
mitted to invest in foreign securities
unless actually engaged in the trans
| acti, IN Of the business of insurance ~
a foreign country. New York insurance
| corporations. however, which transact
! business abroad may within the limits
prescribed bv the law invest III the
bonds OF a foreign Government within
whose Jurisdiction they operate,
The conferences between members or
! the Anglo French mission and leading
! bankers here regarding the broadening
az the acceptance. market between the
three countries continued yesterday. SIR
! Henry BabblnGtuu Smith, Octave HON
hcrp and Basil Il. Blackott we- at the
offices OF j. !. Morgan & Co. for some
time. and il Is believed they were dis
| cuss!ng this matter with members OF the
orm. Later In the day one or more OF
the commissioners visited the National
city Bank
For Rate stnbiIizatiOn.
II ia admitted in banking circles that
n il nrabable that the S5OO,OOO,oo
| loan will not he sufficient to stabilize
The rate Of sterling exchange and that
some other means must be res0rted 70
! for Ibis end. An arrangement when
would permit Great Britain France
,o draw some $4,000 900 10 s3"o'ooo'-
-. -. .lnn. nrrEnilnnHS on ihIH NOlln-