New-York tribune., 1920-09-04
French Loan
TOBeOffered
Here Tuesday
Syndicate Will Announce
Terms After Triple Holi-
day; Redemption Plan at
ITO Is Favorable Feature
To Sell $1OO,OOO,OOO
Securities Bearing 8 Pct. ON
Face May Sell at Discount;
Mature in Twenty Years

Americas elaborate machinery 70.
placing new bonds in the hands Of in
vestors has been geared up to offer
to the public next week $100,000,000 of
securities of the Republic Of france.
A nationwide syndicate, which will in
cludc the leading banks, trust COM
panies and private bankers of the
country, has been organized to handle
the new loan to France, which will en-
= allie it to refund 40 per cent Of its
share of the Anglo-French loan of
s500,ooO,000 (of which Frances share
IS 250,0OO ,O00). which natures October
Is rext. France will take care of the
other 60 per cent, bankers say, by ship
ping gold and buying dollars with
francs and sterling in the open foreign
exchange market. The ship bringing
will leave Havre to-day and others will
follow regularly until the day the
Anglo-Frencn loan, which was the
largest foreign loan ever absorbed by
American investors, falls due.
Official announcement of the terms
of the new loan to France will be made
next Tuesday afternoon and the sub
scription books will open Wednesday
morning, it is understood. Several OF
unsettled, but in broad outline the
terms have already been made known
to members Of the syndicate and to
outside bond dealers.
A syndicate member In q communi-
cation to bond men pointed out that
France, ain the midst of one Of the
most remarkable industrial and dnan-
cial recoveries in the history Of gov
ernments, has arranged to pay OF at
the Anglo-French loan and has asked
American investors to refund the ba.-
ance by purchasing bonds Of the new
loan. This banker asserted: "That
the acceptance Of this responsibility Is
our very clear duty will be recognized
by every thoughtful American"
In the opinion Of we'll informed Wall
Street men, the new bonds on their
face will bear interest at the rato OF
slight discount to yield. approximately
$40 per cent, and will run for twenty
years. Besides the high interest rate,
which is 8 per cent more than tn.
Apglo-French loan bears, the bonds
will have trimmings" including o
sinking fund and redemption feature
and possibly conversion feature. Il is
UnOetStOOu tnat Un0er the redemption
plan $5,ooo,ooo will be retired each
year at ITO.
In connection with the rate, bankers
explained that friends of France in
this country wish that the terms could
havo been less severe, but that tho
French government understood the
need OF meeting the requirements o.
"an abnormal financial situation"
At present, besides the An9lo-French
loan, France has no external loans out
standing in the hands Of American in
vestors except City Of Paris loan and
the French Cities loan.
Great Britain has slready provided
for nesting its half Of the Anglo
French loan. and 10 understood to have
balances in this country in excess Of
the smount needed to redeem outstand-
Ing bonds which have not slready been
bought In. It has been estimated that
Great Britain has alrsady bought in
100000 900 Of the bonds and that
\ rance has purchased more than Sz0.-
100000: !a-lior in the year IL de-.
weloped thAe neall. 500 900 600 OF
Aa9io-Srench bonds were In tho nos.
session Of the japanese, but Il is f1ke-
y that some Of this block have already
oesn sold In the open market.