The sun., 1919-11-01
BRITAIN TO SPEND
NEW LOAN IN U. S.
All Money Received From Sale
Of S250,000,000 Notes
Will Be Used Here.

That all money which Great Britain
600, 600 gold notes being offered in this
country by a syndicate headed by ]. p.
Morgan & Co. will be spent in America
was made yesterday clear in authorita-
tive sources, where the story that Eng
lend plans to relend portion of the
money to Belgium was secuted OF the
total amount which Great Britain will
receive from the sale of the notes, APP
proximstely s135 900. 900 will be utilized
for the payment of the 1915 United
Kingdom issue. The remainder will be
used for the movement of cotton. grain,
&c. 1t was pointed out yesterday that
whenever the British Government sells
exchange 10 one of her own importers
she lifts cotton or grain bills or similar
obligations ~ the case may be.
Rumors to the effect that Belgium
was getting a 50.Q00,0O0 pounds sterling
loan from England have been given
pretty general circulation In the last
week or two. That report and the fact
that the Belgian Government had not
obtained a loan in this country gave to
many the idea that the British Govern
ment was using the money received here
to take care of her obligations in Amer
loan to Belgium. The result, 1t was
believed, would be trade concessions and
other advantages which otherwise would
come to America. Prominent interna-
tional bankers Immediately got in touch
with all sources which would be apt to
be aware OF such a transaction between
England and Belgium. and were met
with the answer that nothing whatever
was known of the matter. While the
American bankers could not deny
definitely that such a loan was pending,
they did declare yesterday that they did
not believe that II was, because. they
said, the British Treasury and other
similar agencies would be apt to know
something about it.
No information was yesterday avail
able as to progress being made by the
American syndicate in the sale of the
new British notes.
Reports from various sources have
declared from time to time that the loan
was not going as well as the bankers
had expected. 1t was asserted yesterday
at the Offices OF j. p. Morgan & Co. that
several largo and important corporations
had placed subscriptions for large
amounts of the notes. That the United
states Steel Corporation has entered Its
subscription for 100000 of the 5 -
per cent notes and has also subscribed
$40 900 600 to the syndicate which will
guarantee the sale of the notes was an
nounced yesterday by Judge Ebert H.
Gary, chairman of the corporation, who
declared that he believed that the securi-
ties were a very desirable investment.
The judges statement reads The
United States Steel Corporation has
agreed to purchase s10,00O.000 of the
new So per cent. United Kingdom loan
amounting 10 $3.50, 100000. and to sub
scribe s1O,000,0G0 to the syndicate which
will guarantee the sale of the total issue.
We believe these securities Will be first
class In every respect and very desira-
BILE investment
1--WE think II is decidedly to the inter-
est of the United States, as well as
Great Britain. that purchases OF this
character be made by Americans at this
particular time. This should have a
marked influence toward restoration Of
normal rates of exchange and lettering
financial and commercial relations be-
tween the two countries, and therefore
of advantage 10 the entire business stu
alton"