The Washington herald., 1919-02-25
BIG FINANCING
DEAL FINISHED
British Short-Term Notes
Converted Into Long
Time Securities.

Time Securities.
When J. p. Morgan sailed a few
weeks ago for Europe he said to n
friend that the excursion was to be
the first one across the sea which he
mas been able 20 take for two years.
lie was looking for rest and recrea-
I tion.
Nevertheless the impression was
sNong that ne would find opportunity
between rest ard recreation 10 como
In touch with the leading financial au-
thoriti-s Of London. perhaps of Paris.
IhaS slt-Tnisc is proved to have been
cog-ert.
= considerable number OF the part
ncrS Of the mouse OF J. p. Morgan and
Company have been at the same time
IN Europe. although one Of them, Mr..
Dawson. has been exclusively occu-
pea with the Red Cross work. He
hopes TO set on foot measures by
means OF which the Red Cross organ
izatlon will p" thoroughly interna-
uonalizCd and established in all parts
OF the world
MIR. S.cttinius las been occupied for
some time in Parts with important
matters and Nj. Morrow returned q
few weeks ago from a long sojourn
In Euroi.". being occupied with some
special work. NJ. Lamont is now iu
Paris.
Conferred in London.
Mor-an and I.sTort met in Lon
don and sr"rr' TO have ACCOMPLISHED
a work Which may bc o. moaleutouS
1 consequence 20 Tho United States
~Thcy ar" u.pO I'd TO have perfected
negotiations With tNc British author
1 tiles which viii cnaAl" them to con-
tinEC the great HnaUrinE involved in
the cOnveTsiO OF British Short-timc
notes into longtime securities.
Alr"aGy they have partially per
fCCtct this conversion. applying i
to the notes which became due Il
few weeks ago. There stiH remain
somc Of these notes which will prou-
ably sooner or later be converted
into long time securities.
NeTE likely Mt Morgan will make
no other explanation OF this nCgo-
tiatiOn than by the announcement
that he with others in the United
states is now prepared to under
axe the CONVERSION Of British short
me notes into securities which will
have a long time to run.
He does no. need to make any
other explanation. These securities
will be aS much part Of the gov
ernment ObliE- lions C Great Britain
as are the consols They may not
have as permanent life - the con
soils do. but their life will continue
well into the next generation, in all
probability.
Big PIccc OF Financing.
nF i.~.lF g.. y--h,r,-, 80 -b,r+ f-v,N
notes for securities which will have
long time to run and which will bear
q tempting rate Of interest, is no
more than an ordinary. although very
large piece OF financing But aSsO-
Ciated with il are some features which
should he understood. especially at this
time when StupendOUS financing of
various kinds Is under way.
In the first place tEo marketing in
the United states Of 3 very large block
OF British government securities which
Hays a long tim" to run. Illustrates
The changed relations or some of
them, which have been accustomed ny
|'thc war. For presumably these Sc
curttieS Will remain permanently in
the United States.
That viii be "A shifting Of positions
when comparison is made with the
market which was found in Great
Britain at the time Of the civil war
and later Tor the bonds Of the United
States
More than half q Ecncrauon's time
has passed since The United States
HundertOok 10 make a market for a
khlock OF English cousoIs The amount
Is understood to have been $1,000. ~
This was very small in comparison
with this later financing 30 far as the
SamOunt OF money involved IS con-
carued. but il actually contains the
same principle as the one which lies
st the bottom of Mr. Morgan's nego-
ti0tlon with the authorities of Great
Britain for the conversion Of British
FEor; time notes into ;hc long time
bonds
James StiIImnn's LeaderShip.
Soon rrte- the close OF the Boer
MAR JuTcs StiIImuu. Pre- S,dl.rt Of the
SotiOna' city Rank at that time.
ront -"-ue weeks ia London. so that
fle might -,Ct good view of the
'nunciai situation in England and in
he United States.
I-pur ms return 20 New York he said
rat GnaEcir! conditions throughout
@ VOL uuc especially IN the Unit
{ Scs-rs would not become normal
III FIci-Lslu mad io'Iud the way u
uancs the great war debt incurred
y it i'm the South African war Eng
and did lind the way and the event
gas as Mr.. StiIIman predicted. lie
attributed 81" so--aIrsI r.cn mans
7uic iT' rIr- rruI:ry 'vh.,h followed
he close OF 'aa Iiorr war in cons der
hlc Eiea~':r' g., tuc unsettled imam
iaI cord iiu..
Mr.. StillmHU did more than merely
comment Upcu tho situation. He
las persuaded that it would be of
vail both to the United States and
Great Britain If there were market
p in this country a large amount OF
English consOl5. He actually caused
consignment OF 10000 Of these
Ionsols to be sent to the United
(tatCs.
He knew that the rate of interest
as such as to make il impra cticabIe
place these bonds with private in
estors. but he WAS convinced that
hey would admirably supplement the
esourCcs Of the American banks
furthermore, the purchase Of them
hd tho holding OF them permanently