The Bridgeport evening farmer., 1915-09-29

 Anglo-French financial commission on The eighteenth floor of the Hotel Bilt- more. Sir Henry Babingtone Smith, former President of the Bank of Fur key and one of the four representa- lives of the British Government read | short announcement last night of he completion of the negotiations for huge credit for the Allies He an nounced that Great Britain and France were prepared to pay sub- stantially per cent. for a five-year ban Of $500, GOO, GOO to be doated here, hot a dollar of which is to leave this country. Investors are to be offered An opportunity to subscribe for 1bonds pm a basis to return nearly 1z per eent Afterward, MT. Davison, member of the firm of J. F. Morgan & Co.,; read a statement on behalf of that firm in which he outlined it's views as to the necessity for making this loan- He announced that J. P Morgan & Eo-, would receive no compensation For it's part in the negotiations or for managing the underwriting syndicate. Anticipating the statements made in New York, Lord Reading, Chairman bf the mission. made a similar an kouneament at the dinner rendered the Tour members who went to Chicago on Monday. His statement was as fol
 Ofhcia1 Announcement.
 am now in a position to make an announcement as to our pro- ceedings.
 The discussions between the Anglo French financial mission and the American bankers have resulted in the formation of definite plan for a loan to the British and the French Govern nents to be issued in this country on a broad and popular basis The proceedss of the loan will be employed exclusively in America, for the purpose of making the rate of exchange more stable, thereby helping to maintain the volume of American exports.
 The plan contempIates the is sue of $5O0,00O 1000 5 per cent. < dve-yearz bonds constituting a di- : rect joint and several obligations of the British and French Govern naents as regards both capital and interest No other external loan has been issued by either Of these Governments apart from notes of the French Treasury to a limited amount, maturing in the next six months
 Bonds To Be Convertible.
 The bonds will be repayable at ! the end of five years or converti-s b1e, at the option eof the holder, into 4 F per cent. bonds of the two Governments, repayable not earlier than fifteen years and not 1aEer than twenty-five years from the present time by the two Gov ernments, Jointly and sexerallysz The bonds will be issued to the pub lie at 9S. yielding approximately 5 F per cent. to the investor The work r, put by a syndicate which Messrs. J F. Morgan 6 Co.,, and a large grouI bf American bankers and fnancia houses will at once set about to form such group will include epresenta lives throughout the country, and al members of the syndicate will be or precisely the same footing. This syn aicate, whose business it will be tt irra1ige that every investor shall hav. tn epportunity to subscribe to tn. ssue will contract to purchase tn, ban from the two Governments at 96 Statennent of J. F. Morgan & Go. Mfr. Davison's statement, on beha1 # J. F.. Morgan & Co, was as fol Dws:
 The commission has made plain, by it's statement, that it has de+ ternined at the outset to recog- nize investment conditions in A1aerica- It proposess to meet these conditions by issuing an ob ligatfon which is without precev dent namely, the joint and sew erM promise to pay of Great Brit min and France, To this it has attached terms which mean a yield to the investor of almost E E per cent per annum and car " with them a conversion privi- Iege calculated, upon the return of normal conditions to prove of # distinct value to the holder of this bond. The interests of the small investor are also consulted in the decision which the Commission CTS have arrived at to issue the bonds in denominations as low as $100 and to allow the subscribers to make insta1lment payments for the loan. It is to be- noted that, as the commission has stated, this is an external loan, free from all present or future English and French taxes.
 To Promote American Trade
 It is proposed by the coTn1nis-. sion that the proceeds of-the loan be handled so as in no way to dis turb our own money markets, and to that end the general plan will be to leave the cash realized from the bonds on deposit with
 
 banking institutions which be- come members of the syndicate throughout the United States This proposed loan may in fact be considered as an arrangement made by American commercial and agricultural interests with their regular customers to accept deferred payments covering com modfties purchased.
 International commerce neces- earily involves at times the exten- sion of credit by the selling ma ton to the buying nation. The agricultural. manufacturing, and financial interests of this country should welcome the opportunity to extend credit to any solvent customer where the extension of such credit furthers American trade.
 The normal export trade of this country to Great Britain and Trance runs into many hundreds of millions of dollars annually To