The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-01
Details Are Lacking.

It would be impossible even II space
permitted to enter into the details OF all
the various loans ioated in Europe
since the war began. Official informa-
ton "a lacking regarding some Of those
brought out by h continental coun-
tries, aside from which the essential
data bearing upon England's advances
to the smaller and weaker Allies are
lacking. In its tabulation of the new
capital hotation Of the half year tho
Economtst of London In its issue Of
June 20 says:
Our l~endings-or are they gifts?-
10 our allies cannot be stated, for their
amount 10 a close Government secret.
It goes without saying that II these Dor
row!ngs could be included our figures
(of the six months Security issues)
would be swollen enormously"
England, II would appear. 10 now pur-
suing the same policy that animated
william Pitt In prosecuting the wars
against the first French Republic and
Napoleon. Nothing so Infatuated the
first Napoleon as the lavish use Of
pitts gold" In financing the various
coalitions against him, and a similar
policy now Ia a very sore point with
Germany. The advances to the smaller
friendly States are very heavy appar-
entity. or the Economist would not say
that "our figures would be swollen enor-
mously" by their inclusion In the half
yearly %tabulation o. new issues.
England's first extensive borrowing
tool the form Of an issue Of $3.50. 900. 900
Treasury bills. Thereafter Treasury Is
sues. usually in blocks Of SIS. 900, 900,
followed In rapid succession at varying
interest rates. Under this plan the cost
Of o f~iuctuated between ~ and
az per cent, but as the half year drew
TO a e.ose there was a marked diminu-
ton In takings. The Government varied
the original plan and instead OF calling
for tenders for definite amounts kept
Treasury bills on continuous sale and
! accepted tenders daily. Up to May 90
| the enormous total OF $7To,S4J, 900 was
borrowed in this manner for war pur-
poses for periods ranging from three
months to one year.
As far back as November Grea'
Britain determined upon the first per
manent war loan. an issue OF S,750.'
600, 900 Of an per cent. thirteen year
bonds. which were offered for subscrip'
tion at IS. Although this was the
largest loan up to the date OF its offer
ing In financial annals II was fully sub
scribed without delay. One reason for
this no doubt centred in the fact thai
the Bank or England agreed 10 advance
money on the bonds at u OF l per cent
below the minimum bank rate, and thi'
arrangement was to hold good whatevei
the bank rate should be, At the time
OF the Offering 1t was calculated Eng
lands wal expenditures were at the rate
Of S2,250,0 00. 900 annually. This esti-
mate was raised in March to 10000.
900 a day. or $3.s50,000, 900 a year
Now the accepted estimate Is $4,000.
900 a day, or S.. AS. 000, 900 a year.
This ever expanding cost brought
England into the money market agar
last month for a loa Of limitless amour
except that the total should not q
this time exceed the staggering sum o
IS. 900. 000. 900. This second large wa
loan took the form Of ~ per cent
bonds at par less certain concession
which established ass per cent. In
terest basis. This is the most importan
offering OF the war to date and In SOM
respects tho o important loan Il
the worlds entire financial history. Tn,
scheme included q provision for tn
virtual conversion Of the entire enor