New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-02-27
CANADIAN LOANS
TO BE OFFERED
HERE In DOLLARS
J. p. Morgan & Co. Take
Over S1O,OOO,OOO City of
Montreal Issue

Two important Canadian financial
operations affecting this market are
nearing completion, according TO au-
tboritative information obtained yes
terday. The city of Montreal is arrang-
ing TO refund an issue of slO,OOO,ooo
of sterling bonds which was placed IN
Iondon some time ago with new is
sue of dollar bonds in New YORK. Inc
Dominion government is shortly TO
hiring ont 500 ,OOO,O 900 of per cent IN
ternal war loan bonds, large portion
Of which is expected to be offered for
sale in New York.
The Canadian government loan VIII
probably be foated the middle oil
March. Unlike other Canadian war
loans issued in the last two years, II
will be made payable in gold dollars in
New York, as we'll as in Montreal. Com
ment is favorable as to the wisdom
of making the loan payable at both
places, as this, it is hoped, will induce
a large participation in the loan in the
United States.
Loan 10 Run Twenty Years
While the terms of the issue are
somewhat indefinite, il Is known that
the loan will consist of twenty-year b
per cent bonds, yielding about 5h per
cent. A part of the proceeds will, 1t IS
said. be used to refund that part of the
500. coo. 600 two-year notes due August
/ which have not yet been converted
into ,the twenty-year 5 per cent bond
issue Of 1916.
This will be Canada's third internal
war loan. and the first of this kind of
credit offered directly by the Dominion
bankers in the United States. OF the
first war loan it is estimated that APP
proximatcly $25,OOO,OOO ultimately
found its way into this country. and
of the second loan about S30,OOO,OOO
The new loan was recently authorized
by the Dominion Parliament, at the re-
ouest of Sir Thomas White, Minister of
Finance, who asked that the issue be
floated either in Canada or New York.
No underwriting syndicate is to be
formed to make the offering Of the
bonds here. The per cent ten-year
bonds of the first war loan, issued in
November, 1915, at 97lA, will be con-
vertible into the new issue. The first
war loan gave a yield of approximately
5.4S per cent, and the second about
$50. The new loan is expected to yield
around $50 per cent.
Canadian Issues Popular
Bankers here are of the opinion that
the impending issue will be well taken
by local investors, and some said that
nearly all of it might be subscribed
for in the United States. In the past
Canadian loans floated here have met
with marked success. A year ago an
issue Of S75,OOO,O00 bonds was oversub-
scribed several times. The new issue is
said TO form but a small part of this
years financial programme, and it is
expected that another loan of 100000
600 will be hoated exclusively in this
market later on.
The new financing by the City of
Montreal provides for the redemption
of approximately $1O,OOOOo0 of bonds
issued in London, in a similar manner to
the refunding operations carried out
last year by the provinces of Sas-
katchewan and Manitoba and the City
of Winnipeg. The details will be worked
out by J. P. Morgan e. Co. The trans
action is being arranged at the sugges-
ton Of the British Treasury and is part
Of the plan for maintaining sterling ex-
changes.
Agreement with Morgan & Co.
The resolution adopted by the Mont
real Council dealing with the transac-
ton Is as follows: THAT the Bank of
Montreal be requested and authorized
to agree on behalf of the city to the
following conditions proposed by
Messrs. j. P. Morgan & Co., New York,
for the purchase of civic issues in Eng
land at prices not exceeding the fol-