It was officially announced at New York on Tuesday night
that the Anglo-French Loan would be for B100,000,000, at the rate of 5 per cent. Lord Reading, in a statement made on Wednesday, stated that the negotiations had resulted in the framing of a definite plan on a broad and popular basis. "The proceeds of the Loan," he explained, "will be employed exclusively in America for the purpose of making the rate of exchange more stable, thereby helping to maintain the volume of American exports." The Loan will be issued to the American public in the form of five-year notes at 98, and to the underwriting syndicate at 96, on the joint and several liability of Great Britain and France, hearing interest at
5 per cent., and convertible after five years at the holder's option into 4i per cent. bonds running for a further ten to twenty years, the Governments having an option to repay at any time after ten years—i.e., after fifteen years from the original date of the issue of the loan. The bonds will be issued to the public, yielding approximately 51 per cent, to the investor.
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