New Britain herald., 1916-07-14
FRANCE TO SECURE
 $lOO,000,0OO LOAN
Bankers Form Corporation and
 Will Offer Bonds Next Week

New York, July 14.-Additional evil dence of the determination of France to carry the war against Germany to a decisive termination regardless of cost, was furnished last evening in an official announcement of the comple- ton of negotiations by the French government with American bankers for new loan of $100,OOO,000.
 This loan is to supplement Frances half of the $500, 100000 lent last fall by American bankers and investors to the governments of Great Britain and France jointly. As in that case, the proceeds of the new accomm odation are to be expended entirely in the United States for munitions manufac- tured here.
 In connection with the new loan American bankers have taken a step novel to American financing and one which indicates the progress the United States is making in world finance. Instead of lending the money direct to France or underwriting the loan and offering it directly to in- vestors here they have adopted a method better known in London and Paris, hitherto the great lenders of money to the world, and have ar ranged for the organization of cor poration to carry out the transaction. This body is to be known as the merican Foreign Securities company It Is to have a capital of 1O,000,000, subscribed by the group of bankers yyyn nio1o fo, +ho have at it's head Robert Bacon, at one time United States ambassador to France and prior to that a member of the firm of J. P. Morgan & company. Suez Stock as Collateral.
 Another novel feature in connection with the loan is the deposit, as a DOT ton of the collateral to secure it, of shares of the Suez Canal company. This is the first time securities of that famous waterway corporation have been pledged as security for a loan. Other collateral behind the loan are securities of American corporations and bonds of neutral governments in Europe and in South America The market value of collateral is to be $120,000,000, and it is to be main- tained by the government of France
 
 i amount of the loan.
 The terms and conditions of the | loan were announced by Messrs. J. P. | Morgan & company, and Messrs. Brown Brothers & company in the 1 following official statement: An American corporation is to be | formed under the title of the 'Ameri- 1 can Foreign Securities company the 1 capital stock of which will be $1O,- O00,000, fully paid.
 "It is proposed that the company shall lend $100, 900 to the republic of France and that the company shall I issue it's three year five per cent. notes 1 to the extent of about 95,000,00 in ] this market. The three year notes are 1 to be secured with a margin of twenty l per cent. by obligations of the govern ment of Argentina, Sweden, Norway, Denmark, Switzerland, Holland, Uru- l quay, Egypt, Brazil, Spain, Province of 1 Quebec; shares of the Suez Canal 1 company, and bonds and shares of 1 American corporations. It is expected that these three year notes will be listed on the New York Stock ex- change.
 Robert Bacon at Head. Robert Bacon, at one time United States ambassador to France, is to be president of the company. It's board of directors will be Messrs. James $. Alexander, president National Bank of Commerce; George F. Baker, chair man First National bank; James Brown of Brown Brothers & com- pany; T. Dewitt Cuyler, president Commercial Trust company, Philadel- phia; Charles c. Dawes, president Central Company of Chicago; Clar- ence Dillon, of William A. Read x company; Allan B. Forbes, of Harris, Forbes & company; Henry L. Higgin- son, of Lee, Higginson & company; Louis w Hill, chairman First Nation al bank of St. Paul; Edwin s. Mars ton, jresident Farmers Loan & Trust company; A. w. Mellon president Mellon National bank of Pittsburgh; Edwin G. Merrill, president Union Trust company; J. P. Morgan, of J. P. Morgan & company; Seward Prosser president Bankers Trust company; Charles H. Sabin, president Guaranty Trust company; Henry Seligman, of J. & w. Seligman & company; Frank A. Vanderlip, president National City bank; Albert H. Wiggin, president Chase National bank; Robert Winsor, of Kidder Peabody & company; Will liam Woodward, president Hanover National bank.
 "A syndicate is now being formed and 1t is expected that the three year notes will be offered to the public some time next week"