Norwich bulletin., 1917-01-24
BRITISH COLLATERAL LOAN.

Subscription for $250, 1000. .00O United Kingdom of Great Britain and Ireland secured loan convertible gold notes are being received by a nationwide syn dicate at prices of 99.52 and interest
 for $10o, ,O00, 900 one-year notes and e9.oT for $15o, ,000, 900 two-year notes. The yield is per cent; in both cases. es or earlier.
 This is the third short-term British loan to be placed in this market in addition to the sSoe, ,0oe, ,oOo Anglo & British loans to have conversion rivilege, and it is this feature. coupled with the higher yield that makes these notes more attractive to investors than the other issues.
 At the option of the holder they are convertible at any time up to maturity into 20-year 1-2 per cent. bonds Of Great Britain and Ireland, due Feb. l, 1887, and not subject to prior redemp- tion Both the notes and the bonds are free from all present or future British taxes and are payable either in New York in United States gold coin or at the option of the holder in London at the fixed rate of exchange Of $4.S65 to
 le pound.
 This loan will be secured by deposit of securities having a value of at least $500, 900 900 calculated on the basis of prevailing market prices and exchange rates. This collateral will be com posed of wto groups, the first having value of $150,000, 900. being made up of securities of American municipalities and corpora tions, including the Cana dian Pacific railway and obligations of the government of the Dominion of Canada. the colony of Newfoundland and Canadian provincial and approved municipal securities. In this group there will be somewhat over S100,OG0,- GOO in value in United States municipal and corporation securities and Cana dian Pacific railway issues.
 q T. -A -LIs tons (either as maker or guarantor) of the following foreign governments: Argentina. Chile, Cuba. Austra lia Egypt, Japan, New Zealand and Union of South Africa; and obligations of approved railways in Argentina and the Grand Trunk railway of Canada and approximately $25, 900, 900 in value of bonds and other obligations of divi- dend-paying British railway compa- nies Aggregate value of this group will also be $150, 0,000, 900.
 Provision is made in the pledge agreement for maintaining the collat- eraI pledged at a value of at least 12O per cent. of the amount of the loan outstanding. The British government may sell for cash any of the pledged securities, in which event the pro ceeds of such sale shall be applied to the retirement of notes by purcha SC if obtainable at or below the then re- demption prices, or otherwise by re- demption by lot.
 The notes Will be subject to redemp- ton in whole or in part at the option of the British government at a pre- nium of per cent. for each year or any part of their uneXpired life. but if so called for redemption they may be converted into 20-year 1-2 per cent 1 bonds at any time up to the date of 1 redemption.
 The syndicate offering the notes is composed of T. P. Morgan & Co., who l are the syndicate mana gers: First 1 f1 City Co.,; Harris. Forbes & Co: Brown Bros. & Co.,; William A Read &, Co; l. 6 W. Seligman & Co.,; Kidder, Pea i body & Co.,; Lee, Higginson S, Co.,; l Lazard F'reres; Kissel, Kinnicutt & Co; White, Weld & Co.,: Guaranty | Trust Co., of New York; Bankers | Trust Co.,; Farmers Loan & Trust | Co; Central Trust Co. of Illinois: Un- | ion Trust Go. of Pittsburgh; Conti- mental & Commercial Trust & Savings l bank. Chicago: Marine National bank l of Buffalo and the First 6 Old De | troit National bank