New Britain herald., 1916-08-22

BIG BRITISH LOAN
 OFFERED TOMORROW
Second Largest to Be Floated in
 This Country
Especial to the Herald.)

] New York, Aug. 22.-Public offering ] of the s250,O00,OOO two-year five per ! cent. secured loan of the United King dom of Great Britain and Ireland
 starts tomorrow. This is the second
 largest loan that has ever been made
 in this country, ranking next to the ] $500, 100000 Anglo French fve-year l five per cent loan placed here last | October. Subscription for the new l loan will be received by J. P. Morgan
 & Co., and the other syndicate mem-
 bers at ninety-nine and interest yield 1 ing slightly over five and one-half per | cent. Subscription books will be
 opened at 10 o'clock tomorrow morn
 ing and will close Monday or earlier, l in the discretion Of the bankers. The two-year gold notes, which will 1 be dated September 1, 1916, in addi- l ton to being direct obligation of the British government, are to be secured by deposit with the Farmers Loan & 1 Trust Co. of New York, of bonds and stocks having an aggregate value of $500, 100000. If the pledged securities depreciate in value because of change in market price or in rates of ex- change, the government is to deposit additional securities with the trust company so that the value of the pledged securities shall at all times equal at least 12O per cent. of the prin- cipal amount of the notes outstanding. The notes are redeemable on thirty days notice at 101 and interest prior to September i, 1917, and at 1OO1s thereafter prior to maturity. The gov ernment reserves the right to sell. for cash any of the pledged securities, and in that even the proceeds of the sale are to be received by the trust com pany and applied to the retirement of notes of purchase, if Obtainable at prices not exceeding the redemption price, and otherwise by lot at the re- demption price.
 The $500, 100000 of collateral that will be deposited back of the notes Is to be divided into three groups as follows: Stocks, bonds or other se- curities of American corporations corporations worth $100, ,00O; bonds or other obligations of the De- minior of Canada, either as maker or guarantor, and stocks, bonds or other securities of the Canadian Pacific rail- way worth S10O, ,0OO; and bonds or other obligations of the governments of Argentina, Chile, Norway, Sweden, Denmark, Switzerland and Holland worth another S1OO,00O,00O.
 Pending the arrival and deposit of
 
 ment is to deposit with the trust com- pany al the time of issue of the notes, either approved New York stock ex- change collateral of aggregate value equal to that of the undelivered se- curities Or cash equal to e-sixths of such value. The government is to have the right also to make substitu- tions of such securities in the perma- nent collateral, but such substitutions
 f1oo ,-o1.o in value of the three groups at the time held by the trust companies Val nations of securities are to be ap- proved by J. P. Morgan & Go.
 Principal and interest of the notes will be payable in United States gold coin at the office of J. P. Morgan & Co., without deduction for any British taxes, present or future. They will be issued in coupon form in $1,OOO, s5,OOO and 0,0O0 denominations, and temporary certificates will be delivered pending the engraving of the definite notes. Amounts due on allotments will be payable in New York funds to the order of J. P. Morgan & Co.,, the date of payment to be given in the notices of allotment
 Bankers forming the syndicate which is making the public offerings are as follows: J. P. Morgan & Co.,, First National bank National City bank, Harris Forbes & Co.,, William A. Read & Co.,, Brown Brothers &z Co.,, Lee, Higginson & Co.,, Kidder, Peabody & Co.,, J. & w. Seligman & Co.,, Guar anty Trust Co.,, Bankers Trust Co.,, Farmers Loan & Trust Co.,, all of New York, Central Trust Co. of Illinois, Chicago, and Union Trust Co.,, Pitts burgh.