The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1915-07-09
BIG WAR LOAN AP0PULAR
INVESTMENT FOR THE BRlT0NS
(BY ASSOCIATED PREsS.)

LONDON, July 7.-Now that the
details of the greatest loan in the
worlds history, Of nominally five
thousand million dollars, have now
been made known by the British gov
eminent, they appear to meet with the
approval Of all experts and Would-be
investors, but they are not quite so
heartily received by holders Of stan
dard "gilted stocks" yielding from
four to five per cent as the value Of
these must necessarily be reduced with
such a security yielding four and a
half per cent.
The new war loan is practically 4
borrowing, conversion and thrift
scheme all in one and will very largely
alter the whole .basiR of investment.
The government retains the option of
dealing afresh with its new debt at
the end Of ten years or has margin
beyond that time Of several more years
the conversion Of every hum
dred pounds ($500) Of consols at about
IS pounds means that so much debt
is wiped out as though obliterated by
sinking fund operations.
One great hit the government has
made is in the effort to draw in the
savings Of the working class by issu-
ing vouchers at postoffices and trade
union headquarters, as with wages on
a high scale in all industrial centers
there will be great opportunity for
the worker to buy at least first five
shillings worth as novelty which may
be an incentive to obtain sufficient for
exchange into five-pound bond.
These small vouchers and bonds will
not be tied up as are the savings bank
deposits, which require two or three
days notice to withdraw, but will be
saleable to the postoftice at any time,
less commission.
Some confusion was caused by a
vote for only $50 millions being asked
for last week and the new loan being
for an unlimited amount, but the for
mer was only nominal amount and
the latter is intended to cover expen-
diture for the year, to allow for pos
sible conversion of consols, old war
loan and annuities into the new loan,
and for paying off something like two
hundred thirty-five millions of treas
ury bills which mature in the near
future, besides repaying to the Bank
of England advances made in the early
days of the war. This last item in No.
vember was one hundred twenty mil
lion sterling but the chancellor last
night said it was now we'll under fifty
millions.
Late last night there was a big
crowd waiting for prospectuses out
side and inside the bank and at 7:30
pm. Lord Cunliffe's arrival was the
signal for distribution which was not
concluded till a late hour, the last of
ten vans leaving just before midnight
with the country consignments. Today
again people lined up outside early
and from opening time to we'll on in
the evening there was steady stream
of would-be investors marshalled in
and out by the scarlet and gold liver
led attendants, getting their prospect
uses.
The stock exchange was buzzing
with those discussing details, dealers
were being continually called to the
telephone by clients anxious for light
regarding conversion scheme and the
brokers who have the handling OF
trustee estates and investments spent
busy day filling up application forms
and arranging transfers from consols
old war loans and annuities into the
new issue.
The impression among market mer
is that the whole thing is a clever piece
of work both to clear off consols, gel
the workers contributions and to keer
up the country's credit, at the same
time raking in the money. 1t will
however, and already has, a detrimen.
tai effect on standard gilt edged Sc.
curities, these being practically unsal'
able today by reason of the superior
yield and attraction Of the new issue
colonial stocks, home rails and deben'
lures and especially Indian stocks sui
fered most by being marked down tt
the minimum under which dealing:
are not allowed, but they would see q
much lower level were it not for thu
minimum restriction
Holders will have to wait some tim.
before they are able to realize OF
these securities nov