Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1915-09-30
$'!.0|',,000,0OIO SO BONUS
GIVEN TOSYND|CATE
BACKING BIG LOAN.
J. P. Morgan & Co. and Asso-
ciates Underwriting Anglo
French Credit to Receive
a Juicy Commission.
BONDS WILL SELL AT 9S
No Agreement Reached on Ex-
clusion of Munitions-Annu-
al Interest on Securities
to Total $25,00O,O0O.
BONDS WILL SELL AT ss

New York. Sept. 30.--Definite forma-
ton of the big syndicate Of bankers
loan to Great Britain and France. was
begun today by j. p. Morgan & Co..
and other 1inanciers who have been as
sociated with them in the negotiations
here with the Anglo French financial
commission. 1t is proposed to make the
syndicate the largest of it's kind ever
seen in this country and to include in Its
membership banks, trust companies
and individuals from the Atlantic to
the Pacific. In every large city or
financial center in the United States
there is to be under the present plan
group OF bankers who will act as
syndicate managers in their section
of the country. In the south and west
these groups will operate over some
what enlarged areas; in the middle
west, the north Atlantic states and New
England, where the population is dense,
the groups will, in some cases, confine
their activities practically to the city
in which the member banks are To-
Gated and its immediate suburbs. On
behalf of i. P. Morgan & Co, it was
said today that interest in the project
was great and enthusiastic in prac-
tically every section of the United
States.
Contract Not Signed.
How loag it will be before the Anglo
French commission and the syndicate
managers sign the contract, whose de-
tails We're officially announced here
and in Chicago last night, was today
matter of surmise. The agreement
which will be embodied in the contract
requires the ratification of both the
British and French parliaments and
the contract cannot be signed until this
is forthcoming. 1t is extremely un-
likely, however, that ratification will be
refused or even delayed.
of the loan revealed few departures
from the plans previously outlined in
unofficial reports. Nothing is said
about the exclusion of purchases OF
war munitions. The most surprising
feature was the price at which the big
issue is to be sold to the underwriting
syndicate-9G. Previous reports had
ranged from 971s to 80. The bones
will be placed on the market at 90 tG
the investor. The per cent difference
in the prices to the syndicate and the
investor will provide a profit to the
syndicate and reimburse them for the
expenses incidental to the loans flo
tatiOn.
s1o,ooo,ooo for Syndicate.
Because the bonds will be sold 4
yer cent under their par value, Great
Britain and France will have placed
20 their credit here not $500,000,0 900,
but $4S1.O00.0 900. In other words. the
Two nlLiOnS are paying $ZUUUU,UU IOf
the privilege of buying American
products at top of the market prices.
In addition to this $20,000,000, the
.wO countries will pay $25,000.000 an
1ually for five years in interest to the
holders of the bonds.
Individuals wishing to buy large
clocks of bonds may join the syndi-
cate, it was announced, but limit.
yet to be disclosed, will be placed on
individual purchases. To accom-
1odate small investors the bonds will
pc issued in denominations as low as
800. and may be paid for in INSTALL
ments, whose amounts are yet to be
determined.
Foreign exchange advanced only
-esult of the official announcement OF
ing opened at 4711s. an overnight
gain of y of u cent.
Chicago, Sept. 2e.-That Chicago
banks probably would not participate
in the Anglo French loan as banks, but
that the middle western financiers as
individuals would subscribe to the
foreign loan, seemed the prevailing
opinion in banking circles today as the
hour of the departure of the loan COM
missioners approached.
Many consultations were held by
Thomas w. Lamont, representative OF
j. p. Morgan & Co. with officials Of
bond houses. and through the morning
he explained to them the conditions of
the proposed loan of $500,O0O,OOO out
lined by Baron Reading, head of the
Anglo French commission last night.