New-York tribune., 1920-01-14
Morgan & Co. to
Offer B Belgian
Notes This Week
Feature of Issue Is That
Holders Get Chance for
Profit if Foreign Ex-
change Improves

change Improves
): P. Morgan & Co., in behalf of
Yesterday announced that so5.Ooo 600
q one and five year gold notes Of Tho
Ningdom Of Belgium would be offered
'a0er IN the week to the American in
.esting public. The proceeds of the
oan' IL is anticipated, will be used for
ne payment of commodities purchased
II }hls country. particularly foodstuffs.
me notes Will be in denomination Of
wv ana VIII on their face bear in
rest at the rate OF per cent. The
'Hering price has not yet been an
iounced, but it is known that it will
ee less than par. The yield may ex-
ceed 612 per cent.
Speculation Chance
In the record Of Americas participa
Won IN world finance, this loan is of
.nlerest because of the speculation it
provides for the noteholders in foreign
eXchange. The rate on Belgian franc
cables last Friday was eleven to the
dollar, and this has been agreed upon
as the fixed rate. The noteholders will
IN effect have call on Belgian francs
at II at any time before maturity.
belglum's fiscal agents, the Morgan
III anu tne guaranty Trust Company,
and the National Bank of Belgium
have worked out an arrangement where re-
py the American institutions can sell
drafts on the Belgian bank up to the
full amount of the loan. Holders of
the notes may at any time surrender
them to the fiscal agents, and request
them to sell 1000 Belgian francs per
$1,000 note at such rate" according
to the announcement Of the syndicate,
'as may be obtainable, but not less
favorable than II francs per dollar
q. e., 500 cents per france, approx
mately the present exchange rate" The
ncteholder who exercises this option, it
Is agreed, will receive par and accrued
interest for his notes and one-half of
the profit on exchange representing
the disparity between the rate at the
time Of the sale and the fixed rate Of
II francs to the dollar), and the other
share of the profit will be retained by
the Belgian government. If the rate
OF exchange on Brussels should return
to par before the maturity Of the notes.
the principal amount of a $1,000
security would be thus increased to
81 o6l so.
Subscription books will be opened
( Thursday morning. Besides the fiscal
agents, the syndicate consists of: The
First National Bank, the National City
Company. the National Bank of Com
merce, the Bankers Trust Company,
the Chase National Bank. the Liberty
National Bank. the Central Union
Trust Company; Lee. Higginson &
Co.; Kidder, Peabody & Co.; Harris
Trust and Savings Bank of Chicago,
Central Trust Company Of Illinois, the
First Trust and Savings Bank Of Chi
cago, and the Illinois Trust and Say
ings Bank of Chicago.
-,
situation in Belgium, the circular says:
the Belgian government agrees
that If in the future it shall offer for
public subscription any loan secured
bv q lien on any specific revenue or
asset OF the government. this present
loan shall he secured ratably with sucn
loal
Relieved of War Debt
treaty and related agreements, the
Belgian government is to be relieved
Of practically its entire war debt M
curi ed prior to the armistice. In addl-
tion, it is to receive the first Z.ooo. opo,-
900 francs Cat par of exchange,
1882, ,o00,0Oo) of payments from the
German reparation, to be applied IN
part toward liquidation Of advances
maze to Belgium by Allied govern
ments since the armistice.
THE peace treaty indicates the pur-
pose, through reparatlon payments, 10
restore Belgium to her pre-war
( financial, industrial and economic
position. The diversified Belgian in
custrv is RAPIDLY regaining its normal
production, which should enable Bel
riGm to resume prominent place
IN world trade.
"Tne per cent perpetual bonds OF
Belgium sold in Brussels during the
Years 1901 to 1907 at prices to yield
not over 315 per cent; in the years
1905 70 1912, not over per cent; and
At the present time are selling at
Brussels on approximately Abs per
cert basis"
Since the armistice two internal
bond issues have been foated in Bel
gium on a per cent basis. One loan
was for 5000, 900 900 francs. The Bel
gian vernment hopes, it was in
dicated that the new s25,000.0O0 loan
will liquidate itself before maturity
through exchange operations.
1t is understood that the present
loan, together with other financial ar
range rnents that have been made, will
take care Of Belgiums essential needs
in this country until the middle of the
year. Belgian rcprese esti,
mated that the kingdom would need
100000 600 credit in the United states
during 1920. In June next the $50, ,0O0,-
600 acceptance credit made to Belgium
~ svndicatc of American banks will
mature Belgium is purchasing loco
motives in this country on long time
credit granted by the manufacturers
Investment Banking