Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1915-09-30
BONDS TO Be ISSUED At 50
Denominations AS Low AS S1OO
with Privilege of Paying by
Observation-Disclosures over
U. S. Given Opportunity to
Subscribe.

financial commission announced tonight
that the proposed credit loan to Great
Britain and France would be s5oo,CO 900
and would be issued on Joint Anglo
French flveyear. five per cent. bonds,
offered to the public at 9S and to the
syndicate Of underwriters at 96.
1t was stated also that the bonds would
be issued in denominations as low as
500 and that subscribers might pay for
them by instalments.
Formation of the nationwide syndicate
Of underwriters has been left to J. Z.
G. Co. and "a large group OF
American bankers and financial houses"
At maturity the bonds will be repayable
in cash or convertible into AZ per cent
Joint Anglo-French bonds redeemable
from 10 to 20 years thereafter by the
two governments Jointly and severally.
Sir Henry Darlington Smith, a member
Of the commission, in making the an
nouncement said an Identical statement
would be made public tonight in Chicago
by Lord Reading. chairman of the COM
mission, who. with three other members
Is comforting with western bankers there
The statement was issued here in tho
name of Lord Reading and read as fol-
lows:
THE FORMAL STATEMENT.
II am now in a position to make an
announcement as to our proceedings:
THE discussions between the Anglo
French financial mission and tho AM
erican bankers have resulted in the
formation of a definite plan for a loan
to the British and the French govern
ments. to be issued in this country on
broad and popular basis. The pro-
ceeds Of the loan will be employed ex-
clusively in America, for the purpose
Of making the rate Of exchange more
stable. thereby helping to maintain
the volume of American exports.
THE plan contemplates the issue Of
$500. 100000 Ave per cent. five year
bonds constituting a direct joint and
several obligation of the British and
French governments. as regards both
capital and interest. No other exter-
nal 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. The bonds will be repayable
at the end of five years or convertible,
at the option of the holder. into Az
per cent bonds Of the two govern
ments, repayable not earlier than Il
years and not later than % years from
the present time by the two govern
ments jointly and severally.
BONDS OFFERED AT 9S
THE bonds will be issued to the pub
lie at 9S, yielding approximately five and
one-haf per cent. to the investor. The
work of Offering this loan will be car
ried out by syndicate which Mcssrs.
y. T. Morgan & Co. and a large group
of American bankers and financial
houses will at once set about to form.
Such group will include representatives
throughout the country. and all members
Of the syndicate will be on precisely the
same footing. This syndicate, whose
business it will be to arrange that every
investor shall have an opportunity to
subscribe to the issue. will contract to
purchase the loan from the two govern
ments at 96"
1t was announced that Russia would
not participate in the loan.
MORGAN BANK ANNOUNCEMENT
Henry p. Dawson of the firm of j. p
Morgan & Co issued this statement
on behalf Of his firm when Sir Henry
had concluded reading the statement or
behalf of the Anglo-Fr commission
"The commission has made plain, by
Its statement, that 1t has determined al
the outset to recognize investment con,
ditions in America 1t proposes to meet
! these conditions by issuing an obliga
ton which Is without precedence, namely
the joint and several promise to pay
of Great Britain and France To this
| 1t has attached terms which mean 2
yield to the investor of about flve ant
one-half per cent. per annum and carry
with them conversion privilege cal
culated upon the return of normal con
ditions to prove of distinct value to tn,
holder OF this bond
THE interests of the small investor ar
also consulted in the decision which tn
commissioners have arrived at to Issue
the bonds In denominations as low as $40
and to allow subscribers to make install
ment payments for the loan. 1t is To b.
noted that as the commission has stated
this Is an external loan free from al
present or future English and Frencl
taxes
1T Is proposed by the commission tina
the proceeds OF the loan be handled so a
| In no way to disturb our own money mar
kets and to that end the general plal
will he to leave the cash realized from tn
bonds on deposit with banking institution
which become members of the syndicat
throughout the United states. This pro
posed loan may in fact he considered a
an arrangement made by American com
mercial and agricultural interests wit
their regular customers to accept deferre
payments covering commodities pur
| chased.
THE agricultural. manufacturing an
financial interests OF this country shout
welcome the opportunity to extend cred
to any solvent customer where tho exter
sion of such credit furthers America
trade. The normal export trade c
this country to Great Britain an
France runs into many hundreds of mi
lions OF dollars annually. To preserve sue
trade under the existing abnormal cond
lions. we believe the proposed arrang,
ment to he imperative and accordngl
we and the many banking institutions an
financial houses that will be associate