Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-09-29


these governments apart from notes
of the French treasury to a limited
amount, maturing in the next six
months. The bonds will be re-payable
at the end of five years or convertible
at the option Of the holder into 1-2
per cent. bonds Of the two govern
ments, re-payable not earlier than Is
years and not later than % years from
the present time by the two govern
ments jointly and severally.
THE bonds will be issued to the pub
lie at IS, yielding approximately 81 per
cent. to the investor. The work of offer
ing this loan will be carried out by a
syndicate which Messrs. J. r. Morgan &
Co. and large group of american bank
ers and financial houses will at once set
about to form. Such a group will in
clude representatives throughout the
country and all member, of the syndi-
cate will be on precisely the same foot
ing. This syndicate. whose business it
will be to arrange that every investor
shalR have an opportunity to subscribe
to the issue, will contract to purchase
the loan from the two governments at
&c."
1t was announced that Russia would
not participate in the loan,
Davison's Announcement
Henry p. Dawson of the firm of j. F.
Morgan & Co issued this statement on
behalf of his firm when Sir Henry had
concluded reading the statement on be-
half of the Anglo French commission:
THE commission has made plain by
| it's statement that it has determined at
the outset to recognize investment condi-
tons in America. 1t proposes to NEE:
these conditions by issuing an obligation
which is without preC edence, namely the
| joint and several promise to pay of Great
| Britain and France. To this it has at
tached terms which mean a yield to the
. investor of about 81 per cent. per annum
and carry with them & conversion privi-
! lege calculated. upon the Neturn of nor
NAL conditions, to prove of distinct value
to the holder of this bond
The interests of the small investor are
! are consulted in the decision which the
t commissioners have arrived at to issue
| the bonds in denominations as low as
500 and to allow subscribers to make in
stallment payments for the loan. 1t 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.
| 1T is proposed by the commission that
/ the proceeds Of the loan he handled so
as in no way to disturb 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 insti-
tutions which become members of the
syndicate throughout the United States
! This proposed loan may in fact be con-
| sidered as an arrangement made. by
American commercial and agricultural III.
terests with their regular customers to
accept deferred payments covering COM
modities purchased.
| THE agricultural. manufacturing and
| financial interests Of this country should
| welcome the opportunity to extend cred
| it to any solvent customer where the ex-
| tension of such credit furthers Ameri-
| can trade The normal export trade of
| this country to Great Britain and
France runs into many hundreds of mil
| lions of dollars annually. To preserve
A., such trade under the existing abnormal
conditions we believed the proposed ar
rangement to be imperative and ac-
I cordingly we and the many banking in
| stitutions and financial houses that will
be associated with US will act as man
ayers without compensation.
Syndicate Reimbursed
The two per cent margin between the
prices at which the issue will be Of
fered to public and the syndicate like
wise will reimburse members of the
syndicate it is contemplated. for their
expenses in placing the loan on the
| market.
To bring the great offering-the larg-
est of its kind ever placed in the United
States-before investors throughout the
entire nation the country will be d.
vided into districts or zones and to each
district there will be delegated a SUBJ
committee of the syndicate managers.
composed of the subscribing banks and
trust companies within the districts.
Thus at Boston. at Philadelphia, Pitts
burgh and Chicago and at other financial
centers committee Of the banks in
each city or section will have direct
charge Of the work of marketing the
securities among investors residing in
their districts.
These subcommittee will work Sim.
ultaneously and will report to the fed.
eral syndicate managers who will he
located in New York The five wear
bonds, principle and interest. will be
payable in other cities, this detail with
many others, is yet to be decided upon
In order. however. to comply with reg
ulations of the New York Stock Ex-
change, New York City will be desienat-
ed as the place Of payment upon ma
turity.
Parliamentary ratification of the plan
is necessary in the case Of both Great
Britain and France. but it is assumed
by members Of the commission that