The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-08
ANNOUNCE PLANOF
LOAN TO DOMINION
Canada's S75,O00,000 Issue to
Be Secured by Long Term
Bonds and Short Notes.
MORGAN GROUP IN CHARGE
Distributing Syndicate Will Be
Vast Machine Covering
Whole Country.

Announcement that the new $4,000
900 Dominion of Canada loan, which is
TO be handled by large group OF Amer
lean bankers, will be secured by long
term bonds and short term notes which
will be sold at prices TO yield slightly
better than $50 per cent. was made
yesterday. Practically all of the details
Of the new loan have been worked out
and the offering will be dated August /,
1919. In announcing the progress that
has been made and making public more
details OF the proposed loan, J. p. Nor
gan q Co., heading the banking group
behind the loan. issued yesterday the
following statement:
''Sir Thomas White. Canadian Minis
ter of Finance. has announced the issue
of q new Dominion loan Of S75,000.0 900.
the proceeds OF which will be devoted TO
the retirement of the Canadian loan of
500, 900, issued here two years ago
and maturing August 1.
THE new issue will consist partly Of
two year notes, due August 1, 1921. and
partly Of ten year bonds, maturing
August I. 1899. The issue price on the
two year notes will be 90 u and interest
ana on the ten year bonds 81 and inter-
est, the Yield on both classes OF securi-
ties being slightly over $50 per cent.
I'VE and our associates, consisting Of
Brown Bros. q Co., Harris, Forbes 4
Co., First National Bank. National city
Company, Guaranty Trust Company.
Bankers Trust Company. William A.
Read & Co. and the Bank Of Montreal,
have purchased these securities from
noyninion GayarnYpanf and haya
taken steps to form a distributing syn
dicate which will offer the securities
for public subscription at later date
this week"
The group OF bankers named in the
Morgan statement 10 the same as the
group which participated in the Cana
dian loan two years ago. The distribute
ing syndicate through which the bonds
will be disposed OF will be q vast ma
1t was declared.
It IL understood that the proportion
OF the amount which go into short term
notes will be left to the discretion of
the banking syndicate managers. 1t
was declared yesterday that the sub
scription books for the new issues will
be opened at the Office OF j. p. Morgan
& Co. at the beginning OF business on
July 0. and that the syndicate will be
Terminated at the discretion of the man
A9ers at an earlier date.
The Issuance of the S75, 900, 900 loan,
it was said, Is subject to its ratihcati ton
by the Canadian Parliament. Its prin-
cipal and interest are payable in gold
dollars at the agency of the Bank of
Montreal in this city without deduction
for all Canadian taxes, present or fu-
ture. but that clause will not exempt
from Canadian taxes payments made in
discharge of notes or bonds owned by q
Canadian subject. In other words. the
bonds and notes are exempt from all
Canadian taxes for American citizens
owning them.
The two year notes are in coupon
form. in denominations OF $1,000 and
multiples OF that amount. The long
term bonds are In denominations of 500
and in coupon form. 1t is probable that
the two issues Will be made interchange
able. Tho bankers handling the loan re-
serve the rights to reject any or all APP
rlications and to award smaller
amount than applied for in any case.
Amounts due on the allotments will be
payable at the Office OF j. p. Morgan a
Co. In New York. Those amounts and
the date of their payment will be given
IN the final notices Of allotments, 1t was
declared Temporary certificates will be
delivered pending the engraving of the
notes and the bonds.