New-York tribune., 1920-09-08
Find Good Demand
For New Bonds of
French Government
Syndicate Members Say That
Many Inquiries Are for
$lOO Securities; Official
Terms Show Par Offering

Official announcement OF The terms
of the new $1OO,0oO,OOO 8 per cent
French loan, made public yesterday,
revealed that the bonds are being Of
fered at par and will run for twenty
five years from September Is. AL
though the subscription books will not
be formally opened until tomorrow
morning, it was said at the Offices of
j. P. Morgan e. Co. and other bank
ers. who are members of the under
writing syndicate, that large num-
ber of subscriptions have already been
tabulated. A noteworthy feature of
the offering to date, it was said, was
the inquiry for the bonds Of S10O de-
nominations. The present indica-
tons are that the entire issue will be
we'll overSubscribed.
Sale of the new French bonds will
complete Frances arrangements for
taking care of her half of the $780,
100000 Anglo French loan, which will
mature on October Is. The remain
ing $150,000.O0O is to be met by credits
already e'..-blished here and by gold
shipments, part Of which is
now on the high seas bound for New
York. AS England has completed
plans for meeting it's share of the
Anglo,French obligations payment of
the loan is now assured.
The circular announcing the terms
of the French offering, made public by
the American underwriting bankers
yesterday, said in part:
"The government Of tie French Re
public covenants in the loan contract,
under which these bonds are to be is
sued, to pay to J. P. Morgan & Co.,
as sinkin. funG trustees, the sum Of
not less than $4,4OO,0O0 annually, to be
applied to the purchase of bonds up to
and including 111 per cent and ac-
crued interest, prior to December Is,
1928, and thereafter to the redemption
of bonds by lot at 11O per cent and
accrued interest. During the first five
years sqch payments will be made in
quarterly installments beginning
December IS. 1920, and ending Sep
tember Is, 1925, and thereafter will
be made in semi-annua, installments,
commencing December IS, 1925.
THE amount of the interest accrued
on bonds purchased or redeemed is to
be paid by the government in addition
to the fixed sinking fund payments
Such sinking fund payments are suf-
hclent to redeem at 110 per cent all
of the bonds at or before maturity. In
the event that prior to December Is,
1925. bonds are not purchased at 40
per cent in an amount sufficient to ex-
haust the payments to the sinking
fund. any such unexpended balance is
to be used for the redemption of bonds
by lot at 40 cent at the earliest
date provided for such redemption,
namely, March IS, 1926"
There are thirty-six banks and
fnanc::l institutions that arc mem
bers of the underwriting syndicate
The New York participants include j.
?. Morgan & Co., the First National
Bank, the Guaranty Trust Company
the National City Company the Bank
ers' Trust Company, Lee, Higginson e.
Co., White, Weld & Co., Lazard
Freres, E. II. Rollins & Sons, the Ma
tional Bank of Commerce, the Ameri-
can Exchange National Bank Brown
Brothers & Co., Harris, Forbes e. Co.,
William A. Read G. Co., J. G. w. Selig-
man & Co., Spencer, Trask & Co., the
Chase National 3Ink, the Central
Union Trust Company. Kidder, Pea
body e. Co., Kissel, Kinnicutt & Co.,
Bonbright & Co., Inc, Halsey. Stuart
& Co. and the Liberty National Bank.