New-York tribune., 1919-06-12
Syndicate Underwrites Bonds
and Will Offer Them to
Public To-day; Other Is
sues Expected to Follow
To Be Spent in U. S.
Proceeds of Loan Will Be
Used toFinance Purchases
of American Commodities

The Kingdom Of Sweden has OBJ
tanned a 25,00G,0OO loan in this coun
try. Charles E. MITCHELL president
of the National City Company, yester-
day afternoon announced that syn
dicate headed by the National City, be-
ginning to-day, would offer for public
subscription twenty-year per cent
bonds, which constitute direct gen.
eral "credit obligation Of the Swedish
government, whose faith and credit
are pledged for the prompt payment
OF principal and interest"
The proceeds of the loan. it was
SAID, are to be used wholly in the
United States for the purchase of COM
modlties, chiefly foodstuffs. Bankers
associated with the underwriting SYM
dlcate declared that Sweden has heavy
deposits here, but is borrowing now to
get into an extremely strong position
IN regard to the purchase of commodi-
ties. 1t was said that Sweden was ask
ing for the funds at this time to get
ahead of the other European nations,
nearly all of whom are expected to
seek credit in this country.
Switzerland to Get Funds
Since the signing Of the armistice
the Belgian credit of $5O,000,000 and
the fiotation of $10,000,000 of the: City of
Rio de Janeiro bonds have constituted
the only two pieces of foreign fnanc-
gin. The loan to Sweden is regarded
in the financial district as the forerun
ner of a series to the European neu-
trails and belligerents, which will be
practical expression Of Americas new
position as creditor nation. Switzer-
land is expected to be the next bor-
rover 1t is reported that she will get
between $20,000,000 and $25,00O,0O0 at
~ per cent. The Danes have feelers
out in the money market at present
and the Czecho-Slovaks are CARRYING on
negotiations, but it is the belief Of
bankers that the Czechs' loan will not
be consummated until after peace has
been formally proclaimed.
The fotation of the Swedish bonds
will be carried on on a national scale.
In addition to the syndicate members.
bond distribution agencies in manv
cities have been enlisted in the sell
ing organization. Besides the National
City Company. the syndicate consists
of Kuhn, Loeb & Co., the Guaranty
Trust Company, the First National
Bank, Brown Brothers, Lee, Higginson
e. Co., Kidder, Peabody e. Co., Conti-
nent Trust and Savings Bank of Chi
cago, Mellen National Bank of Pitts
burgh, Union Trust Company of Pitts
burgh, First National Bank of St. Paul
and the AngloLondon and Paris Ma
tional Bank Of San Francisco.
Yield COS Per Cent
The bonds will be offered at 9eh.
to yield 6.05 per cent in coupon bonds
in denomination of $1,000 They are
redeemable, as a whole, on June is,
1929, or any subsequent interest dats,
at 102 and accrued interest. PRINCIPAL
and interest are payable at the Ma
tional City Bank.
Swedcn's last appearance in the
American money market was in Decen-
Der, 1914, when she borrowed S5,OOO.-
600 on two-year 6 per cent notes. In
addition to foodstuffs, Sweden will use
the proceeds Of the present loan for
other commodities, especially machin-
cry and cotton.
At present the exchange rate IS
slightly against Sweden, being 25.75
cents to the kroner, compared with q
parity of 26.8 and 35 about a wear ago