CANADIAN WAR LOAN

Manawatu Herald, Volume XXXIX, Issue 1677, 20 February 1917, Page 1

CANADIAN WAR LOAN

The second Canadian war loan, like the first, was greatly over-sub-scribed. It was issued in September last, the amount asked for being one hundred million dollars, equal to £20,000,000. Subscribers pay 871 nominally, but their gain in interest on collecting the first coupon will bring the net cost down to about 97.09 for a 19-year bond bearing 5 per cent, interest. The interest yielded is therefore about 5.29 per cent. This is a slightly lower yield than obtained in the case of the first domestic loan announced in November, 1915. As on the former occasion, the chartered banks put in a subscription for half the amount advertised for, “if necessary.” Including the banks’ subscription for the total amount applied for was about £40,000,000. The banks were excused from taking up any of the bonds, on the Understanding that they hold themselves in readiness to provide £lO,000,000 in connection with the financing of British purchases of shells, etc., in the Dominion. Even after the withdrawal of tile banks’ application, it was necessary to drastically cut down the allotments to the larger applicants.