Phoenix tribune., 1920-09-25
AMERICAN BANKERS
MAKE SIOO,OOO,OOO
LOAN TO FRENCH GOVT

cate OF American bankers a loan of
Sl00,000,000, running for twenty-five
years, and bearing interest at the rate
OF per cent. per annum. according
to official announcement made recent
ly from the office of j. P. Morgan &
Co. head of the syndicate. The terms
of the loan do not differ materially.
except in the date of maturity, from
the forecast printed a little more than
a week ago
A chief of the loan as finally con-
cluded is that of redemption. Under
the loan contract, the French govern
ment agrees to pay annually to ]. P.
Morgan & Co.. as trustees, not less
than S4,400,000, to be applied to the
purchase of the bonds up to and in
Guiding 10 per cent and accrued in
terest. During the first five years
these payments are to be made in
quarterly instalments, and thereafter
in semi-annual instalments. After the
five-year period 100000 or more of
the bonds will be called yearly for
redemption at no
A syndicate composed of thirty-five
banks and banking houses is offering
the issue for subscription at par and
accrued interest to yield 8 per cent
The subscription books will not be
opened formally until Thursday, but
it is known that a very large number
of subscriptions have been received.
A feature of the subscriptions sent in
was the very large volume of small
subscriptions of 800 and $500, insur-
ing an exceptionally wide distribution
for the loan. The bonds will be dated
September IS, 1920, and mature on
September Is, 1945. Their principal
premium and interest are payable in
United States gold coin without de-
duction for any French taxes, present
or future
The proceeds of the loan will be
used to aid France in liquidating her
share of the Anglo-French loan, which
natures on October Is. That loan,
amounting to $5OO,OO0,OO0, is a joint
obligation of France and England,
each of these countries being liable
for the payment or Sz50O00,000 at
this time. The entire British share
will be paid off at maturity, a large
number of the bonds having been pur-
chased already in the market. The
balance of Frances share, amounting
to $150000,000, will be liquidated by
the shipment of gold, the first OF
which has been sent from Havre, and
by the use of credits established in
this country by the sale of francs in
this market. 1t is estimated that from
S50,000,OOO to $4,000 900 of gold will
be sent here. while from $75,0000 900
to $100,00O,000 will be taken care Of
by the purchase of dollar exchange.
The syndicate which has under
written the issue is headed by ]. P.
Morgan & Co. The other participants
are the First National Bank, Brown
Brothers & Co. the National City
Company, the Guaranty Trust Com
pany, Harris, Forbes & Co., the Bank
ers' Trust Company. Lee, Higginson
Co., VIM. A. Read & Co., Kidder,
Peabody & Co. j. & w. Seligman &
Co., White, Weld & Co., Spencer
Trask & Co., Kissel, Kinnicutt & Co.,
Lazard Freres, Bombright & Co., E.
H. Rollins & Sons, Halsey, Stuart &
Co, the Chase National Bank, the
National Bank of Commerce in New
York, the Liberty National Bank, the
American Exchange National Bank
the Central Union Trust Company,
the First National Bank of Boston,
the National Shawmut Bank of Bos-
ton, the Old Colony Trust Company
Of Boston, the Commercial Trust Com
pany of Philadelphia, the First Trust
and Savings Bank of Chicago, the
Illinois Trust and Savings Bank of
Chicago, the Continental and CONNER
cial Trust and Savings Bank of Chi
cago, the Central Trust Company Of
Illinois, the Union Trust Company of
Pittsburgh, the Mellon National Bank
of Pittsburgh, the First National Bank
OF Cleveland, the First National Bank
Of Cincinnati, and the First National
Bank of ST. Louis.
The loan was negotiated by the
French government through Maurice
Casenave, director of the French serv-
ices in the United States, and Jean
Parmentier, director of the French
ministry of finance. The latter came
to this country a few weeks ago and
aided M. Masenave in carrying
through the loan negotiations. Those