The sun., 1919-07-20
SELL $sO,OOO,OOO
SWISS BONDS HERE
Syndicate Of Bankers Is Buyer
Of New Issue, Which Will
Be Offered to Public.
EXPECT PRICE TO BE 90
Funds to Be Used for Retiring
Last Of 1915 Issue and
Buying Supplies.


ming extensive purchases of foodstuffs,
machinery and raw materials in the
United States, has sold an issue Of
s3o.oe0.ooo 5h per cent ten year bonds
in this market They have been taken
by q syndicate composed OF Lee, Hig-
ginson G. Co., fiscal agents of the Swiss
Government in the United States; the
Guaranty Trust Company and the Ma
tional City Company. A public offering
Of the securities will be made early
next week, when the issuing price will
be named. It is expected that this price
will be 90. at which the bonds will be
worth an even per cent.
A part of the funds thus obtained
probably will be used to retire the last
s5.000,000 of an issue of $15,000.000
floated in this country by the Swiss
Government in 1915. 1t was 8 per
cent loan. maturing in one. three and
five years. The portion of this loan
unpaid, amounting to $5,000,0p0, will
mature in March, 1920. and tho current
loan is of sufficient size to retire the
last of that issue and finance prospec-
tive purchases here.
Lee, Higginson & Co. issued the fol-
lowing statement yesterday:
"A new issue Of $30,000.000 5h per
cent. ten year bonds of the Government
of Switzerland has been bought by a
syndicate headed by Lee. Higginson &
Co.. the Guaranty Trust Company and
the National City Company and soon
will be offered to the public. The total
Swiss general debt in 1918 was about
$685.. 900, or about SIS per capita,
considerably lower than that OF any
other European country with the pos
sible exception OF Denmark. The Swiss
loans quoted in London and in the
United States have fiuctuated very little
and the interest rate has been lower
than that Of most European countries.
In spite OF the unusual cost of main
tanning itself on a war footing to en-
force neutrality. the financial situation
of Switzerland Is sound and the country
has come through the severe test OF the
last four years with Its credit good and
Its resources intact
How Funds VIII he Spent.
TN 1915 a syndicate headed by Lee,
Higginson & Co. sold S15,O00,0O0 gold
serial notes issued by the Government
Of Switzerland. OF which $4,000, 900 ma
tured and promptly was paid
TT Is expected that the proceeds from
the issue OF $4,000. 600. soon to be Of
fered. win be devoted to the purchase OF
commodities produced in the United
States.
Tho naturalization of the railways
late IN the last century puts about 1000
of the approximately 5000 miles Of rail-
road in the country under Governmental
control With the railways the State
assumed a debt amounting in 1918 to
about $34e,S00, 900, not included in the
general debt OF Switzerland, as the rail-
way accounts are kept separate from
those of the Government. In normal
years the railways have shown sub
stantial profit. considerably in excess Of
the annual requirements for interest and
sinking funds.
THE Swiss banking system resembles
that in the United States. There are
more than 800 banks, with resources of
about s2,414,0o0. During the war the
Swiss franc was quoted at a substantial
premium in most countries.
The foreign trade Of Switzerland
amounts to nearly 81. 900, 000, 900 a year
The help OF foreign capital will permit
Switzerland to develop its great water
power. making the country independent
OF the costly importation OF coal and oil
switxeriand's Help During War.
THE Swiss people have maintained
neutrality during the war with much diff
hculty and at large cost. An efficient
militia of $1,000 troops was maintained
In this Oldest of all existing republics,
but II cost the country about s207,70o,-
600. OF which, with that prudence char
acterizing this simple, frugal and indus
trious people. more than one-third has
been covered by direct taxation.
The worlds gratitude is due Swift
zerland for its humane care Of the sick
and wounded and prisoners Of all oom-
Blatant nations. In one portion OF this
service, the distribution of mail. the
Swiss postal authorities handled more
than 500.000.000 letters and parcels
| free of charge. at a net loss to the State
! treasury OF $500.
Tho basis OF security for these bonds
| Is the character of the Swiss people
Contributing to this character Is a uni
| versal compulsory system OF education,
which makes illiteracy almost unknown.
| Schools are numerous and well attended,
and there are many private schools.
| Special schools make a feature of COM
| mercial and technical instruction. Seven
universities have more than 5000 stu
/ dents. Agriculture in the valleys is
highly developed, wheat. oats. corn, bar
| ley, flax, hemp and tobacco forming the
| principal crops. Forests cover about a
sixth of the surface of the country
Tho manufactures consist chiefly of
| silks, cottons linen. lace. thread, wool
lens. clocks. watches. leather. gloves,
pottery, tobacco, snuff and cheese.
THE labor situation has been salts
| factory. Bolshevism is finding no soil
/ In which to grow, although the asylum
granted 80 freely to all people has per-
mitted the presende of agitators."