New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-11-23
LIKE
THEIR NEW LOAN
Terms of Issue Make Its
Interest Rates Attract
i've to All.
PEOPLE PREFER
FIXED INCOMES
Balkan Affairs Regarded as Hav-
ing Little Effect on Gov.
eminent Stock.
By YVES GUYOT.

by Cable 70 The Tribune.
Paris, Nov. 22-The loan now alb
serbs financial conversation. Every
one is commenting on the conditions
Of the issue, which are considered
advantageous. The interest rate,
with the price at SO and payments
deferred until March 10, amounts
t. 5.68 per cent.
Stock paid up Immediately will
enjoy a bonus of 10 centimes per 20
francs Of stock, lowering the issue
price to 1925. Surprising full pay
ment is made on December l, the in
terest will amount as follows:
The stock bears interest from No
vember 16, making p centimes on
S7.25 for fifteen days, which lowers
the issue price TO 87.4, the annual
interest amounting to $3.50. Stock
paid for in defence bonds or in 31s
redeemable rentes must be paid up
Immediately, consequently enjoying
q reduction to 1926. But as the
soldiers 8 per cent Is irredeemable,
those who pay partly in rentes and
partly in cash for the loan won't
enjoy this reduction, which perhaps
is one reason why rentes have fallen
since Friday to $3.50. Also numer-
Gus rentes selling orders came from
holders without other assets, who
have been compelled TO sell part of
their holdings to subscribe for the
lean.
The patriotic sentiments which in
duced the French to change over
100000 gold for bills at the
Bank of France will cause many to
subscribe to the loan. Furthermore,
the French love investments at fixed
interest, because they habitually en-
Joy living on such revenue. One
never finds them investing more
than a part of their capital In in
dustrial Stocks with varying reve-
nues, their first preoccupation be-
ing the certainty Of fixed annual
sum. The state loan guarantees
their revenues. 1t is certain that
the French government will continue
to pay interest at the minimum rate
of 5.6S until 1881, the earliest pos
sible date for conversion. Never
could a Frenchman aspire to such
high interest from stock so sure
The people had stopped buying
French rentes because they found
the interest too low-hence the many
investments in foreign government
bonds-but the present loan offers
interest superior even to the latter.
Finally, the French remember two
per cent loans, the first in 1871
at $3.50 and the second in 1883 at
$3.50, in the afternoon Of the great
defeat. From September 7, 1874
the per cent bonds were at 10000
On March 10, 1877, they reached
108.7O; on October 25, 1880, 1905
and on March %, 1881, 1920. Even
after the panic Of 1882, the lowest
price in 1888 was 1875, the high
est being 116.10.
AS for foreign capitalists-Ameri-
cans, English, etc.-they will benefit
by exchange premiums.
Balkan affairs can have but little
influence on the loan. They prove
that the Allied diplomats have been
victims of their own good faith, and
were greatly mistaken in not allow
ing the Serbs to go to Sofia the day
the Bulgarians began mobilization
which needed fully seventeen days
Il the Kaiser makes circus entry
into Constantinople, that won't give
him a grain of supplies, soldiers or
capital. 1t will prolong his front
already far stretched, and every one
in France knows that the final set
Element will come on the banks of the
Rhine.