New-York tribune., 1921-05-19
Early Investment
Offerings Likely
To Be S2OO,OOO,OOO
Loan to France Expected to
Lead Financing; Union
of South Africa and Urla-
quay Also Negotiating

Preliminary details have been ar
ranged for new French government
loan Offering in the American market
as the first of a series of important
pieces Of foreign and domestic fnanc-
ing involving the sale to the invest
ment public of an aggregate of
5000, 100000.
The several items of financing al
ready negotiated or under discussion
by the bankers are:
French government loan. =. 81 OF, ,oee, ,eoe
Union OF South Africa. ....... 15,oee, ,ooe
Republic OF Uruguay ......... 1e.0o0.ooo
miscellaneous domestic Issues. $4,000. 900
Negotiations for the new French
loan have been carried on In Paris
by Thomas w. Lamont, who has been
holding a series of conferences with
representatives of the French Treasury
stood that Otto H. Kahns Of Kuhn,
Loeb & Co., the bankers who brought
out the $5oooO,o00 City Of Paris loan,
which is being paid off out Of the
proceeds Of the new French loan. AL
bert Breton, head of the foreign de-
partment of the Guaranty Trust Com
pany, and Maurice Casenave, head of
the French financial commission in this
country, who are in Paris, also sat in
the loan conferences.
Indications are that the formal Of
fering of the French loan probably
will be made some time next week
and 1t Is possible. that negotiations
will have been closed In time to enable
the bankers to bring the issue out on
Monday. While representatives of the
will head the syndicate that will
underwrite and distribute the new
bonds, would not make any comment
yesterday regarding the financing, it
was learned in authoritative quarters
that the bankers are considering a
setup which will provide for $780,
100000 of 71z per cent bonds to be
offered to the public around 95. Ex-
tremely liberal sinking fund provis-
ions will be arranged for and the
bonds are expected to be non-caIIable
and run for fifteen to twenty years.
The $100,0G0,000 French loan hoated
in this country in September of last
year carried an per cent coupon rate
and was offered at par.
French financial requirements in this
market between now and the end of the
year include funds for meeting the $780,
100000 City Of Paris loan, falling due
in the fall; $10,0oo,o0o of French
Treasury bills, and S1o,000,o0U due the
United States governmen in August
on account of the settlement of war
contracts. Money will also be needed
for the purchase of American food
stuffs for export Co France.
The Union of South Africa financing
under negotiation Is business that
under normal pre-war conditions would
have gone to London. However, eondi-
tions in that market are not considered
favorable TO the fotation of the S15,-
100000 sought, and the financial repre-
sentatives of the Union have begun
discussions with leading investment
house. With the completion of this
transaction the South African Union
will have borrowed in New York for the
first time in history.
Urugay, now conducting negotiations
for a loan OF $4,000, 900, originally
sought $25,oo0,o0o but the figure was
considered too large by bankers and IL
has been scaled down The ready sale
of $25 100000 OF United States of
Brazil 8 per cent bonds here Is viewed
by bankers as having provided good
test of the absorptive power of the
investment market in the case of South
m yiean iuSunS