NEWS OF THE WEEK.
THE announcement of the issue of new German loans, both Imperial and Prussian, is the most surprising foreign news of the week. It had been foreseen that more money must be raised, but none had predicted that the total would reach £32,500,000. Of this great sum the Prussian Government, which urgently needs money for buying out the Poles and for railway extension, will get £20,000,000, and the Imperial Government £12,500,000. It will be remembered that last January the Prussian Government dispensed with the services of the banks which generally act as agents, and sold bonds directly to the public. They were bonds issued on curious conditions ; the amount to be subscribed was not stated, and the interest was to be automatically reduced as time passed. About £9,000,000 was produced in that way, but the new issue proves that it was not nearly enough. The Imperial and Prussian Governments once more avail themselves of the banks as agents, and offer 4 per cent. interest without any automatic reduction. The issue price is fixed at 99i, and the subscription will be opened on April 11th. The syndicate of bankers has also taken over £10,000,000 of new Prussian Four per Cent. Bonds, which are not to be offered for public subscription. Altogether, the Imperial and Prussian loans issued this year will amount to over £50,000,000. The more we are convinced of the financial stability of Germany, the greater must be our astonishment at the system which adds to the National Debt at this alarming rate.
