The sun., 1916-11-17
RUSSIAN LOAN HERE
OPENS TRADE FIELD
Bankers Told How U. 8. Will
Benefit by $50, 900 I'm
secured Credit.
TO BE OFFERED AT a. 8-4
Vanderbilt Explains Necessity
for Safe and Easy Outlet
for Gold Surplus.
TO BE OFFERED AT "a s-4

Prior to the official ouncem
last night OF the new Sso.ooo.o 900 Rus
sian loan. moro than one hundred repre-
sentatives OF various banking houses In
this and other cities went TO tho Biitmore
AZ tho invitation Of tho National City
Company. which heads the syndicate that
arranged the credit. to hear explained
the details Of the LOAF and the present
condition Of Russian AFFAIRS.
The loan, the hrst OF It's kind 70 be
made in this country to Russia, II un-
secured. Circulars to the syndicate
which will distribute tho bonds were
sent out last night and arrangements
were completed for q public offering in
the early part Of next week. The loan
bears interest at 6ts per cent and will
be offered for subscription at OAK. Tho
yield will be about 6N per cent. or about
the same as the previous $50. 900 900 loan
placed here by the same interests last
June.
Samuel McRobert, vice-presidcnt Of
tho National City Bank. who started the
original negotiations while in Russia
last summer. told the bankers that the
loan means the opening up Of . new field
va " IIt oLAtC6 hDIth
Russia will need much money after the
war for tho development Of her immense
natural resources n she will come to
New York to get It.
The protection Of American industry
and prosperity was used by Frank A.
Vanderbilt. president Of tho National
City Bank. as an argument for taking
up the loan. The accumulation Of the
tremendous gold stocks here Is liable to
h. fn1ln~Ad hy . NA.t~A ~ .--l-r Al.
aster. he said. unless wo also Offset Il
by a large accumulation of foreign Sc
curities.
Il believe that IL leading TO a danger
Gus i~nfiation," said Mr.. vanderlip. FOR
every banker with surplus funds in his
vaults Is pushing out trying to find new
credits. The time ia coming when We
will lose some Of this vast store OF gold.
We will be the lowest gold market and
they will naturally come to US. When
that happens the credit structure viii he
seriously threatened II may come down
unless we have something else to sell
them except our gold. That is why I say
to you. buy all the foreign securities you
can"
Henry =. Dawson OF J. p. Morgan q
Co also spoke of the grave RESPONSE
bility he believed was resting on the
bankers OF the country. Of the real SER
vice they could be to their country.
There can he n more doubt about the
security Of these bonds OF foreign Gov
ernments. he said, han there 10 about
the security OF the United States Gov
ernment bonds. In view OF tho tremen-
dous wealth OF England and France and
the great potential wealth OF Russia.
The new loan will be dated December
]. and will mature December I, 1891.
Both the principal and interest are pay
able In New York. at the National City
Bank. in gold coin OF this country. The
bonds are a direct obligation OF the I'm
rerial Russian Government. whose faith
and credit arc pledged to the prompt
payment OF principal and interest when
due.
Tho syndicate which will underwrite
tho new loan will offer only $4,000. 200
at nrst. but retains an option on the
remaining s25. 600, 900 in tho proportion
10 Its subscription on the first lot. II
Is expected that the second lot will alsv
be taken up by the syndicate.