The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-12
SWEDEN BORROWS
$25,OOO,OOO HERE
National City Company Heads
Syndicate Which Bought
the Bonds.
WILL BE. OFFERED TO-DAY
Proceeds to Be Used to Pay fo-
Swedish Purchases in
United States.

The first private borrowing here on
TIE part Of any European Government
since the entrance of the United States
Into the war was consummated yester-
day when the National City company
announced that It headed the syndicate
for the purchase of sa5,oOo,oO twenty
year 6 per cent. gold bonds from the
government OF Sweden. The purchase
has been underwritten by syndicate,
which will offer the bonds this morning
at ssh, or practically on a COS basis
me members of the underwriting syn
1Icste are the National City company,
RUM, Loeb q Co.. the Guaranty Trust
Company. the First National bank.
Brown Bros. Co.. Lee, Higginson q
Co., kidder, Peabody Co, the Cont.
nontal and Commercial Trust ana saw
nes Bank of Chicago. Mellon National
Bank and Union Trust Company Of
Pttsburg, the First National Bank OF
81. Paul and the Anglo London ana
Paris National Bank of San Franc,sco
The bankers are organizing a selIin1
syndicate. which is to be Composed IN
Distributors of securities in ali marta Of
the country. The State Department was
consulted concerning that piece of for
elgn financing and expressed no disap-
- ". tio PrVJect. inc personnel of
the distributing syndicate IL To be nattor
Wide' ana Will rival the selling organiza-
tlon formed to float the Anglo French
loan before the United States entered
tho war e'eieu
Inc proceeds of the loan are To he
used for the purchase of commodities
IN tne United states. This Is the only
lhhl. placed on the Swedish Govern
ments borrowing, and Il is understood
that the proceeds win be used for buv-
ing machinery and foodstuffs.
Cnaries f. Mitchell, president of the
National City Company, acting as
spokemen for the underwriting syndi-
cate yesterday, said in part In explana-
tlon of the new loan:
These twenty year per cent. gold
PONDS VIII be the direct general credit
oUhsdtlons OF the Swedish Government
whose faith and credit are pledged for
the prompt payment of principal ana
interest. They will be issued under
authority of the Riksdag National Leg
lsiature OF Sweden) and the Swedish
National Debt Office
Inc wealth of Sweden, embracing
private and public property was esti-
mated officially in 1917 as approximately
sf'oso'ooo,0oO, based on pre-war prices.
ued at ss21.152,0oo IN 1918. Her total
national debt, funded and unfunded was
i4l,o2O,S0O on December 81. 1919.
sweden has prospered financially ana
commercially during the war. Her total
resources OF the private commercial
banks increased 14s per cent. from
March 81. 1913. to March 81, 1919
Her bank clearings in 1918 were So
times those of 1914. Her total foreign
trade has increased from s33s,233. 2ss
IN 1910 to s591.234,soo in 1918, or rs
per cent. Her total visible favorable
trade balance from 1914 to 1918, in
elusive. was s462.3O1,77s.
The fiscal system of Sweden has
been established and developed on a
conservative basis. Her funded debt has
Deem Issued to construct national en-.
terprises, which are revenue producing.
and substantial amounts have been
raised by taxation for the same pur-
poses. Her taxes during the war have
been increased to meet extraordinary
governmental expenditures for national
defence. She has incurred short time
debts during the war to purchase food.
fuel and raw materials, and II is ex-
pected that those debts will be liquidated
largely from time to time as the sun
plies are sold.
Sweden enjoys very high credit. In
normal times her external loans bore
n rate of interest from to Az per-
cent and sold on the London and Paris
STOCK exchanges at average prices to
yield 1923 to 4.2s per cent The aver
age yield of four representative Swedish
Government bonds quoted on the Lon
Don Stock Exchange on May 10, 1918,
Wa9 b.31 Der cent"