The sun., 1916-10-27
APPLICANTS FLOCK
FOR new U. K. ISSUE
Indications That S30O,OOO,OOO
Loan Will BE Heavily
Ovcrsubscribed.
DETAILS ARE ANNOUNCED
Well Known Banks and Firms
in List Of Underwriting
Syndicate.

With call money on Stock Exchange
collateral at 2ia per cent. yesterday and
time money at 3is to 3% per cent. well
over the year. all the bankers who par
,lclpated In the s250.000.0o0 United
Kingdom note Issue and who arc taking
part In the new S300.000.o00 Issue OF
the same character were besiccged with
applications for participation.
In ono OF the largest banks 1t was
said that their inquiries from corree-
spondent banks were more than twice as
previous loan. At other banks the
story was the same. Al the end Of the
day there seemed to be no doubt that
the Offering would be oversubscribcd
moro heavily than any other war loan
since hostilities began.
The first loan.'' raid prominent
banker who is taking part in the Offer
ing. was as good ar gold. but 1t was n
novelty. II was not perceived at first
that these notes. guaranteed by the Gov
crnment of Great Britain. have behind
them collateral that We long for in all
our loans here. II thc collateral be-
hitd these notes Is not marketable
nothing is marketable
Further announcement from J. T.. Nor
gan a. Go. said that half OF the bonds.
maturing In three years. would be offered
at 39i. and the remaining $l5o.000. 900.
maturing In five years, at ?Si.. Tho
bonds bear interest at :. per cent. and
will be dated November !. They will
yield about %. per cent. on the three
year class and nearly 5.sj per cent. on
the five ycar The price to the members
Of tho syndicate will be about Ia below
the offering prices. from which will be
deducted i per cent. for selling COM
missions and selling expenses.
A. with the loan last August. the
bonds will be secured by "A deposit OF
collateral in this country. That col
lateral will have market value OF
$3.50 cocoon. In case the securities de-
prcciatc ia value becauae Of change in
market price. or in the rate OF exchange.
SO tl.ut the 90 pcr cent margin viii have
become impaired. the British Govern
mcnt agrees under the terms to deposit
additional securities.
The collateral Tor the loan - divided
into two groups. the first comprising
stocks, bonds or other securities OF
American corporations. including the
Canadian Pacific Hallway Company and
bonds or other obligations Of the Ia
madam Government. Newfoundland or
canadian provinces o: 'nun!C pa aI''S
pf the slSO, ,0OU.OO0 of this grou! some =
what oyer Sl0o,O0o.0o will consist or
securities of corporations OF the United
states and ~ the Canadian Pacific Rail-
way Company.
rhc SECOND group includes bonds or
other obligations ~ 'hc Government" o..
Australia. tnion uf south Africi. Now
Ica and, Argentina. Ihil". cuba. Janin.
Egypt and ludia. o. approximately So
nuU. 600 .u bond -" "hli-ationH OF diN'-
dead riyIus British railroads. This q,
iN, iI~,' tune that Great E-'iair ha' de-
p"-iicd bond uf Japau. i.Iypt AMI I'Id'a
.,- cuila:c'a al IN thi, "Vuhtry.
Vending the arrival "r tho permanent
col ttoral for tho loan til" British Gov
ararn,n' ssrccs to dep"sit "'ih ~"
Guaranty Trust company temporary
collateral iu Ia" form Of approved stock
Exchange s.curi'ie- or cash "r both.
Th" British Government reserves tn"
risl, Ia .rd".rl any nf the huud- At u
premium Of per cent for each year %"
part Of Year of the uncAplrcd ~" Of IN"
hnud- PROVISION is also made hy tho
l'uit"d Eingdom I" sell as u secs III,
portinus Of the collateral, wh'rh Will be
used to sc,lrc tho bonds 10y purchase or
redemption.
TN. syndicate which Will undcrwrite
'lr loan comprises J. =. Morgan \ co.
First National Bank. New York; Ma
tiona' city Company OF New York. !. a
W Scligman & 90. kiddcr, Peabody a
90. Lee. iIigginsnn Co. Harris.
I'orhcs d CO.. Brown Brothers " Co,
" William A. Read \ Co. Lazard Frcres.
k,Ssrl. kinnl'u't n 20. White. Wold &
CO.. Guaranty Trust company OF Now
York, Edukers Trust Company Farmers
Loan aud Trust company. central Trust
company OF chicago. Union Trust COM
pany ot rit,shu-s. First aud old Detroit
National Bank Detroit, and tho conti-
mental and Commercial National Bank
~ i-Licat.