THE GERMAN POTASH LOAN.
The huge success which attended the flotation on Tuesday of the Potash Syndicate of Germany Bonds for £5,000,000 suggests one or two very interesting considerations. Does the success, for example, indicate that the prejudice of the British investor against German securities has vanished ? Or is the explanation to be found rather in the exceptional character of the operation ? It may be recalled that a twelve-month ago, when the German Government International Loan itself was issued, although the terms were attractive and the security constituted practically a, first lien upon all German assets, the response from the ordinary British investor was not too good, the Loan being absorbed professionally. In other words, there was a clear political prejudice in the minds of the investor. With the passing of-time there is little doubt, how- ever, that interest in the German Loan began to extend over a wider area, with the result that the price steadily advanced to well- over par. That Loan, however, came out, it must be remembered, under the special auspices of the Bank of England, and until quite recently it had been doubted whether any private German industrial undertaking would command success in this market.
(Continued on page 1110.)
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