The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1915-10-01
DEFINITE PLAN, FORMED FoRl
ESTABLISHMENT OF $780,.
100000 CREDIT, 10 AN
NOUNCED.
BONDS TO BE ISSUED
TO THE PUBLIC AT 98l
VIII Be Issued in Denominations AL
Low as $500 and Subscribers I
Thereto May Pay for Them by
Installments-J. p. Nor
gan at Head.

New York, Sept. 30.-The agreement
between the Anglo-French financial
commission and the American bankers
with whom they have been conferring
over the proposed credit loan to Great
Britain and France has resulted i'm the
formation Of a definite plan, it was
officially announced here, for the es-
tablishment Of s500,OOO,0O0 loan is
sue on five year per cent joint Brit
tsh and French bonds, payable jointly
and severally by the two nations upon
which the big loan will be first lien.
The bonds will be issued to the pub
lie at SO, thus yielding approximate
ly 5h per cent to the investor and to
the nationwide syndicate of bankers
which will subscribe to the loan at So.
Formation of the syndicate has been
left to ]. P. Morgan & Co., and "a.
large group Of American bankers and
financial houses"
Bonds as Low as 500.
The bonds will be issued in denomi-
nations as low as 500 and subscribers
thereto may pay for them by INSTALL
ments.
Sir Henry Darlington Smith, a men,
Der Of the commission, made public
the announcement. The statement
was issued here in the name of Lord
Reading and read in part as follows:
"The plan contemplates the issue of
$500,000,0O0 of per cent. five-year
bonds, constituting direct, joint and!
several obligation of the British and
French governments, as regards both
capital and interest. No other exter-i
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 ski
months. The bonds will be repayable
at the end of five years or will be
convertible, at the option of the hold
er, into Az per cent bonds of the
two governments, repayable not earlier
than Is years and not later than 25I
years from the present time by the
two governments jointly and several
ly.
Issued to Public at 90.
THE bonds will be issued to the
public at SO, yielding approximately
575 per cent to the investor. The
work of offering this loan will be-
carried out by a syndicate which
Messrs. J. P. Morgan & Co. and a
large group of American bankers and
financial houses will at once set about
to form. This group will include rep
resentatives throughout the country
and all members of the syndicate will
be on precisely the same footing. The
syndicate whose business it will be to
arrange that every investor shall have
an opportunity to subscribe to the Isl
sue, will contract to purchase the
loan from the two governments at
&C."
1t WIS announced that Russia would
not participate in the loan.
The 2 per cent margin between the
prices at which the issue will be Of
fered to the public and the syndicate
likewise will reimburse members OF
the syndicate, it is contemplated, for
their expenses in placing the loan on
the market.
To bring the great offering before
investors throughout the entire nation,
the country will be divided into dis
tricts or zones and into each district!
there will be delegated subcommit-
tee of the syndicate managers, COM
posed of the subscribing banks and
trust companies within the districts.