HG 5478 He UC-NRLF o >- BONDS OF THE GOVERNMENTS OF THE FREIVCH REPUBLIC AND THE KIKGDOJM OF BELGIUM •-• .'■. w. B. HiBBs AND Company HIBBS BUILDING WASHINGTON, D. C COPYRIGHTED, 1920, BY W. B. HiBBS AND COMPANY, WASHINGTON, D. C. Coaxar. ■ ' Frederic L. GOVERNMENT OF THE INTERNAL LOAN DATE OF ISSUE MATURITY 3% REDEEMABLE RENTES 4 J • - J August 12, 1878, March 17, 1881, and February 12, 1884. Various maturities, each determined by annual drawings on March 1st, which will retire the entire issue by April 16, 1953. RATE OF INTEREST 3% NOTE: 1. The face of a French bond specifies the yearly income produced by that bond, not the principal amount or the par value of the bond itself. The denomination may be ascertained by calculating the siun necessary to produce, at the rate of interest specified, the amount of annual income stated on the face of the bond. 2. As a rule, the interest — whether in the form of coupons or of registered interest — ^is paid quarterly. 3. In France it is customary to cut coupons two weeks before the date when they fall due. This custom often results in bonds being sold "ex-coupon" at times which seem unusual to the American investor. 4. Coupons must be collected within five years after the date of their maturity (Law of August 24, 1793, Article 156). Failure to cash coupons within such period renders them not only voidable but absolutely void. 5. Bonds must be presented for payment within thirty years after the date of their maturity or redemption, otherwise they become absolutely void. 6. A "Lottery Bond" is one the holder of which receives a prize in money — ^irrespective of any fixed premium — provided that the number of the bond drawn for redemption ' corresponds to the number of a prize ticket. The laws of the United States forbid the sale of lottery bonds in this country. INTEREST PAYABLE PRE-WAR January 16th, April 16th, July 16th and October 16th, at the Ministry of Finance in Paris and at all the General Treas- uries in the vari- ous Departments of France. FRENCH REPUBLIC LOANS AMOUNT OUTSTANDING r[SSUES On December 31, 1919, 3,039,569,000 francs, out of a total issue of 4,254,146,500 francs. Price at Which Issued In 1878, 80 francs, 50 centimes per 3 francs of income. In 1881, 83 francs, 25 , centimes per 3 francs of income. In 1884, 76 francs, 60 centimes per 3 francs of income. Approximate Cost at Date of Issue If Rate OF Exchange Had Been at THE Normal (I FRANC=:19.3 CENTS) $155.37 $160.67 $146.84 per 1,000-franc bond Principal AND Interest free from French Taxes If Bonds Are Held by Non- residents Yes -Yes Yes REMARKS These 3% Redeemable or Amortizable Rentes (income bonds) were orig- inally authorized by the Law of June 11, 1878, which created "the debt redeemable by annuities." They were issued in three installments, viz.: (1) on August 12, 1878, 414,542,047 francs principal, bearing 37o interest from July 16, 1878, the particulars of this first issue being fully described in the President's Decree of July 16, 1878, and in the Orders of the Minister of Finance, dated July 16 and August 6, 1878; (2) on March 17, 1881, 1,000,000,000 francs principal, bearing interest from April 16, 1881. This second install- ment was issued under authority of the Laws of June 11, 1878, De- cember 22, 1878, December 21, 1879, March 23 and December 22, 1880, and the details were announced in the President's Decree and in the Order of the Minister of Finance, both dated March 7, 1881 ; and (3) on February 12, 1884, 350,000,000 francs principal, bearing in- terest from April 16, 1884, the provisions of which were fully set forth in the President's Decree and in the Order of the Minister of Finance, both dated February 2, 1884. The issues of August 12, 1878, and February 12, 1884, were in two forms: (1) Coupon bonds to bearer, in denominations producing an annual income of 15, 30, 60, 150, 300, 600, 1,500 and 3,000 francs; and (2) Registered bonds — principal and interest — in annual income amounts of 15 francs and multiples thereof. The issue of March 17, 1881, had, in addition to the above, a third form, viz.: "Mixed Rentes" — bonds registered as to principal only — in annual income amounts of 15 francs and multiples thereof. The issue of August 12, 1878, was divided into 175 series, all of which are to be retired within 75 years after 1878 at par on the interest date (April 16th} following the successive annual drawings on March 1st, beginning in 1879, in accordance with the following "Table of Amor- tizement annexed to the Decree of July 16, 1878. Years From 1878 to 1907 29 From 1908 to 1925 18 From 1926 to 1938 13 From 1939 to 1945 7 From 1946 to 1950 6 From 1951 to 1953 3 75 1 series per year 2 series per year 3 series per year 4 series per year 5 series per year 6 series per year Series 29 36 39 28 25 18 175" In conformity with the above table, the issue of March 17, 1881, was divided into 172 series and the issue of February 12, 1884, into 169 series. Article 3 of the Law of June 11, 1878, prescribed that "all the privileges and immunities attached to Rentes on the State are assured to the 3% Redeemable Rentes." These 3% Redeemable Rentes were not made convertible into subsequent Government loans nor were they accepted in payment of subscriptions to any of the National Defense Loans issued during the war. The principal and interest of these Rentes are exempt from all French taxes. NOTE. French Rentes, whether Redeemable or Perpetual, are inscribed in the Grand Livre de la Dette Publique at the Ministry of Finance in Paris either ( 1 ) under a number alone in the case of coupon bonds to bearer ("Rentes au porteur"), or (2) registered in the name of the holder ("Rentes nominatives"). An "extract from the Grand Livre" or "certificate" is then issued containing either (a) a sheet of coupons in the case of bonds to bearer, which coupons are payable to the bearer thereof, or (b) a space for recording payments of interest in the case of registered bonds. Such registered certificates must be presented and stamped in order to obtain payment of the interest thereon. In certain instances there is a third form, known as "Mixed Rentes" which correspond to bonds registered as to principal only. These are in holder form, but are accompanied by coupons which are payable to the bearer thereof. French Rentes are not classified according to their principal or par value, but according to the amount of annual revenue which they produce. 444171 INTERNAL LOAN DATE OF ISSUE MATURITY RATE OF INTEREST INTEREST PAYABLE 3% PERPETUAL RENTES May 10, 1886, November 14, 1887, January 10, 1891, December 21, 1901. No fixed date of matu- rity, but redeemable at par at any time, at the option of the Gov- ernment. 3% January 1st, April 1st July 1st and October 1st, at the Ministry of Finance in Paris and at all the General Treasu- ries in the De- partments of France. LOANS (Continued) AMOUNT OUTSTANDING On December 31, 1919, 19,745,460,767 francs, out of a total issue of 21,922,217,434 francs. Price at Which Issued 79 francs, 80 cen- times per 3 francs of income in 1886. 80 francs, 10 cen- times per 3 francs of income in 1887. 92 francs, 55 cen- times per 3 francs of income in 1891. Par in 1901. APPROXIMATl Cost at Date or Issue If Rate OF Exchange Had Been at THE Normal (1 Francois. 3 CENTS) $154.02 $154.59 $178.62 $193.00 per 1,000- franc bond Principal AND Interest Free From French TAXES If Bonds Are Held by Non- residents REMARKS Yes Yes Yes Yes The 3% Perpetual Rentes were issued in four installments for various pur- poses, such as the conversion of the old 4% and 41/2% Rentes, the consolidation of the sexennial obligations, the retirement of the thirty- year obligations and liquidation bonds, and to anticipate the portion of the indemnity from China due to France for her expenses in con- nection with the Peking Relief Expedition. They were subsequently utilized for the conversion of the old 3y2% Rentes. The first issue, bearing interest from April 1, 1886, was authorized by the Law of May 1, 1886, to an amount "necessary to produce an effective capital of 500 millions of francs," and the full particulars were set forth in the President's Decree and inl the Order of the Minister of Finance, both dated May 1, 1886, the latter fixing the amount of the issue at 504,000,000 francs and announcing that it would be offered for public subscription on May 10, 1886, only. The above-mentioned Law also authorized the registration in the Grand-Livre de la Dette Publique of "the amount of 3% Rentes necessary to produce an ef- fective capital of 400 millions of francs," the annual income of which was fixed at 15,037,593 francs by the President's Decree of May 1, 1886. The second issue was authorized by the Law of November 7, 1887, to an amount of 37,632,997 francs income, bearing interest from January 1, 1888, and this law also prescribed the redemption of the farmer 4% and 4Vi% Rentes. The details of this issue were given in the Presi- dent's Decree and the Order of the President of the Council and Min- ister of Finance, both dated November 7, 1887, the former fixing the rates of conversion for each franc of 4Va% and 4% Rentes at 83.3 and 93.7 centimes respectively of 3% Perpetual Rentes. 759,812,486 francs principal were thus converted and the remaining 80,187,514 francs were paid in cash. This issue was not offered for public subscription. The third issue was authorized by the Law of December 24, 1890, so as to produce an effective capital of 391,863,000 francs and to retire short-term Treasury obligations amounting to 303,100,000 francs. The terms and conditions were described in the President's Decree and the Order of the Minister of Finance, both dated January 2, 1891, the former fixing the amount of the issue at 869,488,000 francs capital and the latter announcing that the loan would be offered for public subscription on January 10, 1891, only, and that the obligations of the Treasury and liquidation bonds would be retired. The fourth issue was authorized, to an amount of 265,000,000 francs, by the Law of December 6, 1901, which likewise provided for puttmg in order the expenses of the China Expedition." Full particulars were given in the President's Decree and the Order of the Mmister ol Finance, both dated December 8, 1901, and this issue was offered for public subscription on December 21, 1901, only. „,, -„ «so Under the authority conferred by the Law of July 9, 1902. 237,577,852 francs principal of old 3Va% Rentes were converted mto 203,638,159 francs principal of 3% Perpetual Rentes. The Issues of May 10, 1886, November 14, 1887, and January 10, 1891, were in three forms: (1) Coupon bonds to bearer, (2) Mixed Rentes-— L e., registered as to principal only, and (3) Fully registered bonds — principal and interest. The issue of December 21, 1901, was In two forms only: (1) Coupon bonds to bearer and (2) Fully registered bonds. Coupon Rentes to bearer are exchangeable, free of charge, for holder Rentes (fully registered bonds) 'Or Mixed Rentes, but registered Rentes can only be exchanged through an Agent de Change. . , , These 3% Perpetual Rentes are not classified according to their principal or par value, but according to the annual income which they produce, vil.: 2, 3, 4, 5, 6, 7, 8, 9, 10, 20, 30, SO, 100, 200, 300, SOO. 1,000, 1,500 and 3,000 francs. .... 1. . .. • .1,. By the Law of November 16, 1915, one-third of any subscription to the S% National Defense Loan of 1915 was made payable in 3% Perpetual Rentes. They were not, however, given the privilege of conversion into National Defense Loans other than that of 1915. » •* _ „ The principal and interest of the 3% Perpetual Rentes are exempt from all French taxes. INTERNAL LOAN DATE OF ISSUE MATURITY RATE OF INTEREST INTEREST PAYABL 314% REDEEMABLE RENTES July 7, 1914 No fixed date of matu- rity. Redeemable in series by drawings on July 1st of each year, beginning in 1915. The series thus drawn are retired at the next interest date, viz. : August 16th following. 3/2% February 16th, May 16th, August 16th an November 16tl at the Ministr of Finance i Paris and at a the Gener; Treasuries in th Departments c France. BONS DE LA DEFENSE NATIONALE At any time sub- sequent to September 13, 1914 One month, three months, six months and one year after the date of issue. NOTE. The following is a resume of the history of the BONS DE LA DEFENSE NATIONALE: issued under Presidential Decree of September 13, 1914. Issue sanctioned by the Law of February 10, 1915. Admitted in payment of subscriptions to the Obligations de la Defense Nationale by the Order of the Minister of Finance, February 13, 1915. Admitted in payment for the First National Defense Loan of 1915 in amounts of 100 francs and , upward if subscribed to before November 20, 1 9 1 5 — Presidential Decree and Order of the Min- ister of Finance, both dated November 16, 1915. Admitted in payment for the Second National Defense Loan of 1916 provided they had not been sub- scribed to before October 1, 1916 — Presidential Decree of September 16, 1916. Admitted in payment for subscriptions to the Obligations de la Defense Nationale issued on and after March I, 1917 — Order of the Minister of Finance, February 10, 1917. Admitted in payipent of the Third National Defense Loan of 1917 provided they had been sub- scribed to, or renewed, before November 26, 1917 — Order of the Minister of Finance, No- ■vember 1, 1917. Admitted, at an augmented value, in payment of the Fourth National Defense Loan of 1918 if subscribed to before September 15, 1918, and if issued before October 20, 1918. — Law of September 19, 1918, and Order of the Minister of Finance, September 25, 1918. Admitted in payment of the National 5% Amortizable Loan of 1920, if issued before February 19, 1920 — Order of the Minister of Finance, January 9, 1920. WAF 3.6% on one month bonds 4% on three months' bonds 4.5% on six months' bonds 5% on one year bonds. LOANS (Continued) AMOUNT OUTSTANDING Price at Which Issued Approximate Cost at Date of Issue If Rate of exchange Had Been at THE Normal (1 FRANC = I9.3 CENTS) ;0n December 31, 1919, 25,050,500 francs, out of a total issue of 884,614,000 francs. 91% $175.63 per 1,000-franc bond Principal and interest Free From French Taxes If Bonds Are Held by Non- residents Principal, yes; interest, no ISSUES Dn January 30, 1920, 48,879,233,000 francs. 99.70% I 99% I 97.75% ; 95% $192.42 $191.07 $188.66 $183.35 per 1,000-franc bond Yes Yes Yes Yes REMARKS This issue was authorized by the Law oJ June 20, 1914, to the amount necessary to produce an effective capital of eight hundred and five millions of francs," of which 600,000,000 francs were made applicable to the extraordinary expenses of national defense — rendered imperative by the indications of probable war — and the remainder to be de- voted to the expenses incident to the military occupation of Morocco. The full particulars of this loan were announced in the President's Decree of June 24, 1914, and in the Order of the Minister of Finance on June 25, 1914, and the bonds were offered for public subscription on the one day of July 7, 1914. The SVa'/f Redeemable Rentes were issued in two forms only: (1) Coupon bonds to bearer, in denominations of 200, 400, 1,000, 2,000, 4,000, 10,000, 20,000, 40,000 and 50,000 francs principal, producing an annual income of 7, 14, 35, 70, 140, 350, 700, 1,400 and 1,750 francs respec- tively; and (2) Fully registered bonds — principal and interest — in de- nominations producing 7 francs of annual income or multiples thereof up to and including 700 francs income; from 700 to 1,400 francs income, in multiples of 70 francs; and above 1,400 francs annual income, in multiples of 140 francs income. This issue was divided into 73 series and is redeemable in 25 years by draw- ings on July 1st of each year, beginning in 1915, according to the TabU of Amortization which was as follows: "From 1915 to 1923 inclusive, 2 series per year. From 1924 to 1932 inclusive, 3 series per year. From 1933 to 1939 inclusive, 4 series per year.*' The transfer or conversion of this issue was originally made to conform to the regulations governing the 39^ Redeemable Rentes. The law of Sep- tember 11, 1914, however, permitted the 31/2'/^ Redeemable Rentes — provided they had been paid for as prescribed — to be converted at their price of issue (91'';^) and interest into future loans or short-term ob- ligations issued by the French Treasury prior to January 1, 1917. By virtue of the Orders of the Minister of Finance, dated November 1, 1917, September 25, 1918, and January 9, 1920, conversion into the 47r National Defense Loans of 1917 and 1918 and into the National 5""/^ Amortizable Loan of 1920 was permitted on condition that the 3Vi% Redeemable Rentes had been fully paid for prior to January 31, 1917, or permitted to benefit by the Laws of March 31, 1915, and June 30, 1917. This issue is entitled to the same privileges and immunities as the 3% Re- deemable Rentes, except that the interest of the 3V2% Rentes is subject to the French income tax. Within six weeks after the outbreak of war, the French Treasury was in need of resources since its outstanding bonds did not exceed 3,500,000,000 francs. The President of the French Republic, by a decree dated Bordeaux, September 13, 1914, authorized this issue and announced that "Tlie bonds of the Treasury emitted from this day and during the duration of hostilities will bear the title: "Eons de la defense nationale." These short-term War Bonds are discount notes or Treasury bills, and are issued in denominations of 100, 500, 1,000, 10,000, 100,000 and 1,000,000 francs principal. The interest is not paid by coupons but by the difference between the price at which they are issued and their value at maturity (par), with an ad- justment of accrued interest, if any. These National Defense bonds were originally "admitted for the payment of subscriptions to all future loans," but certain restrictions were im- posed by the terms of those loans, which are enumerated in the ad- joining Note. The Bank of France discounts these bonds at 5% at any time within three months of their maturity and will loan on them at the rate of 6% on four-fifths of the face value of such bonds as run longer than three months. The principal and interest of this issue are exempt from French taxes. INTERNAL LOAN DATE OF ISSUE MATURITY RATE OF INTEREST INTEREST PAYABLE OBLIGATIONS DE LA DEFENSE NATIONALE Five-year OBLIGATIONS DE DEFENSE NATIONALE LA Date of purchase subsequent to Feibruary 25, 1915 The 1st or 16th of the month in which the bonds are is- sued after March 1, 1917 February 16, 1925, at par. Redeemable at par less discount of interest, on and after Febru- ary 16, 1920, at the option of the French Treasury. Five years after the date of issue at 102.50% Redeemable at par either one year after the date of issue or, at the option of the holder, at the end of any six months there- after. 5% 5% February 16th and August 16th, in advance. NOTE. The following summarizes the history of the OBLIGATIONS DE LA DEFENSE NATIONALE: The original issue, maturing in 1925, was authorized by the Law of February 10, 1915, and the full particulars were announced in the President's Decree and in the Order of the Minister of Finance, both dated February 13, 1915. Pending the Botation of the First National Defense Loan of 1915, the issuance of these obligations was suspended on November 20, 1915, by the Presidential Decree of November 16, 1915. Admitted to subscriptions to the First National Defense Loan of 1915 by the Order of the Minister of Finance. November 16, 1915. Resumption of the issuance of these obligations ordered on March 20, 1916, by Presidential Decree of March 9. 1916. Pending the flotation of the Second National Defense Loan of 1916, the issuance was ordered to be suspended on October 1, 1916, by Presidential Decree of September 16, 1916. Admitted to subscriptions to that loan by Order of the Minister of Finance. September 16, 1916. Resumption of the issuance on February 16, 1917, directed by Presidential Decree of February 9, 1917. Maximum duration of the Obligations de la Defense Nationale authorized by the Law of February 10. 1915, limited to 20 years by the Law of February 16, 1917. Pending the flotation of the Third National Defense Loan of 1917, the issuance was ordered to be suspended on November 1, 1917, by Presidential Decree of October 28, 1917. Admitted to subscriptions to that loan by Order of the Minister of Finance, dated November 1. 1917. Admitted, at an augmented value, to subscriptions to the Fourth National Defense Loan provided these Obligations had been subscribed to before September 15, 1918. — Law of September 19. 1918. Also Order of the Minister of Finance, September 25, 1918. Admitted to subscriptions to the National 5% Amortizable Loan of 1920 by Order of the Min- ister of Finance. January 9, 1920. In order to make the yield to the purchaser virtually constant without regard to the date of purchase, the following increases in the price of issue of the Obligations de la Defense Nationale were prescribed: 30 centimes, by the Presidential Decree and Order of the Minister of Finance, both dated March 9, 1916; 45 centimes, by the Order of the Minister of Finance, August 4, 1916; 60 centimes, by the Order of the Minister of Finance, February 10, 1917. In advance on the 1st or 16th of the month in which the bonds are purchased and every sixth month there- after. LOANS (Continued) AMOUNT OUTSTANDING Price at Which Issued Approximate Cost at Date of Issue If Rate OF Exchange Had Been at THE Normal (1 KRANC=19.3 CENTS) Principal AND Interest Free From French Taxes If Bonds Are Held by Non- residents REMARKS I' Vide next issue. On November 30, 1919, 166,200,000 francs, in- cluding the preced- ing issue. 96.50% with an adjust- ment of interest $186.25 per 1,000-franc bond Yes Par, but less the first six months' interest paid in advance $193.00 per 1,000-franc bond Yes Issued under the Law of February 10, 1915. "authorizing the emission of short-term obligations" with maturity not later than 1925, the full par- ticulars of this loan were given in the Presidential Decree of February 13, 1915, which announced that the securities to be issued under that law will bear the title of "Obligations de la Defense Nationale." These obligations are in two forms only: (1) Coupon bonds to bearer, and (2) Bonds to order, transferable by endorsement, both in denomina- tions of 100, 500, 1,000, 5,000 and 10,000 francs principal. The following were received in payment of subscriptions to this loan: Cash, banknotes of the Bank of France and the Bank of Algeria, temporary certificates of the 3^2% Redeemable Rentes if fully paid for prior to February 1, 1915, or definitive securities delivered in exchange for such certificates, Bons de la Defense Nationale, or any combination of the above payments. This issue was convertible, at the option of the holder, into subsequent Government loans emitted before January 1, 1918, at the price of issue (96.50%) plus that portion of the redemption premium accrued at the date of conversion but less the prepaid interest for such period of the current six months as had expired on that date. The principal and interest of these Obligations de la Defense Nationale are exempt from all French taxes. These Five-year Obligations of de la Defense Nationale were issued under the Law of February 10, 1915, supplemented by the Presidential Decrees of February 13, 1915, November 16, 1915, March 9, 1916, September 16, 1916, and February 9, 1917, and by the Order of the Minister of Finance, dated February 10, 1917. They are in two forms only: (1) Coupon bonds to bearer, and (2) Bonds to order traflsferable by endorsement, both in denominations of 100, 500, 1,000, 5,000 and 10,000 francs principal. Beginning on March 1, 1917, these five-year obligations were issued at par, but the interest for the first six months was paid in advance at the time of subscription. They are retired at maturity at 102.50%, but holders may demand repayment at par on any interest date one year after the time of subscription or subsequently thereto. This issue was given the privilege of conversion into any future loan emitted by the Government prior to January 1, 1920, at the price of issue (par) plus that portion of the redemption premium accrued at the date of conversion but with a deduction of the prepaid interest for such part of the current six months as had expired on that date. Payments for subscriptions to this loan could be made in the same securi- ties and under the same conditions as those which governed the Obli- gations de la Defense Nationale maturing on February 16, 1925. The principal and interest of these five-year obligations are exempt from all French taxes. INTERNAL LOAN Ten-year OBLIGATIONS DE LA DEFENSE NATIONALE Six-year OBLIGATIONS DE DEFENSE NATIONALE LA FIRST AND SECOND NATIONAL DEFENSE LOANS (Also known as the First and Sec- ond War Loans, the 5% Rentes of 1915 and 1916, and as the Vic- tory Loan) DATE OF ISSUE MATURITY RATE OF INTEREST At any time on and after May 16, 1919 At any time on and after May 16, 1919 May 16, 1929, at par. Redeemable, at the op- tion of the French Treasury, on and after May 16, 1924, at par less the unearned por- tion of the interest prepaid. First War Loan, November 16, 1915. Second War Loan, August 16, 1916, or November 16, 1916 No specified date of ma- turity, but repayable six years after the date of issue at 103%. Redeemable, at the op- tion of the holder, at par 18 months after date of issue, at 100.60% 2 years after date of issue, at 101.20% 3 years after date of issue, at 101.80% 4 years after date of issue, at 102.40% 5 years after date of issue. No fixed date of matu- rity, but redeemable in whole or in part, at par on and after Jan- uary 1, 1931, at the option of the Govern- ment. 5% 5% 5% INTEREST PAYABLE In advance on May 16th and November 16th. In advance on February 16th and August 16th, or May 16th and November 16th, depending upon the date of issue. NATIONAl February 16th, May 16th, August 16th anc November 16th .OANS (Continued) AMOUNT OUTSTANDING Price at Which Issued )n November 30, 1919, 545,619,000 francs. 'n November 30, 1919, 202,152,000 francs. 96.50% with an adjust- ment of accrued interest and re- demp- tion premium Par, but with an ad- justment of ac- crued interest and re- demp- tion premium Approximate Cost at Date of Issue If Rate OF Exchange Had Been at THE Normal (I FRANC = I9.3 CENTS) Principal AND Interest FREE From French Taxes If Bonds Are Held by Non- residents DEFENSE LOANS a December 31, 1919, 25,152,580,000 francs. 88% for First War Loan of 1915. 88.75% for Second War Loan of 1916. $186.25 per 1,000-franc bond $193.00 per 1,000-franc bond Yes Yes $169.84 $171.29 per 1,000-franc bond Yes Yes REMARKS Issued, on and after May 16, 1919, under authority of the Laws of February 10, 1915, and February 16, 1917, supplemented by the Presidential Decree and the Order of the Minister of Finance, both dated May 14, 1919, these Ten-year Obligations de la Defense Nationale are in two forms only: (1) Coupon bonds to bearer, and (2) Bonds to order trans- ferable by endorsement, both in denominations of 100, 500, 1,000, 5,000, 10,000 and 100,000 francs principal. These obligations are dated and their value computed as of the first day of the quarter in which the subscription is made, these quarters beginning on February 16th, May 16th, August 16th and November 16th. They are convertible, at the option of the holder, into subsequent Govern- ment loans issued before January 13, 1922, at a price of 96.50% plus the accrued portion of the redemption premium but less the prepaid interest for such period of the current six months as has expired on the date of conversion. Payments of subscriptions to this loan were received in the same securities and under the same conditions as those governing the Obligations de la Defense Nationale maturing on February 16, 1925. The principal and interest of this issue are exempt from all French taxes. Issued, on and after May 16, 1919, under authority of the same laws, decree and order as the preceding loan, these Six- Year Obligations de la Defense Nationale are in two forms only: (1) Coupon bonds to bearer, and (2) Bonds to order transferable by endorsement, both in denomina- tions of 100, 500, 1,000, 5,000, 10,000 and 100,000 francs principal. "The price of issue shall be fixed for each fifteen days and will be obtained by adding to the nominal capital the accrued portion of the redemption premium of 3% and by deducting the interest corresponding to the period of the current six months which has not expired at the beginning of the fifteen days." Redemption prior to maturity made upon demand of the holder will be ejected as of the date of the last coupon matured. in all other respects, including exemption of the principal and interest from alt French taxes, this issue is identical with the Ten- Year Obligations de la Defense Nationale. The National Defense Loan of 1915 was authorized by the Law of November 16, 1915, and full particulars given in the Presidential Decree and in the Order of the Minister of Finance, both dated November 16. 1915. It was offered for public subscription from November 25 to December 15, 1915, but the bonds were dated November 16, 1915. The National Defense Loan of 1916, authorized by the Law of September 15, 1916, and fully explained by the Presidential Decree and the Order of the Minister of Finance, both dated September 16, 1916, was offered for public subscription from October 5 to 29, 1916. The bonds were dated August 16, 1916, if fully paid, or November 16, 1916, if paid in installments. These two issues are now quoted on the Paris Bourse as one loan. These securities are in three forms: (1) Coupon bonds to bearer, registerable in the Grand-Livre de la Dette Publique at the Ministry of Finance in Paris; (2) Mixed Rentes — i. e., bonds registered as to principal only — and (3) Fully Registered bonds — principal and interest. They are issued in denominations of 100, 120, 140, 160, 180, 200, 400, 500, 1,000, 2,000, 4,000, 6,000, 10,000. 20,000, 50,000 and 100.000 francs principal, producing respectively 5, 6, 7, 8, 9, 10, 20, 25, 50, 100, 200, 300, 500, 1,000, 2,500 and 5,000 francs income per annum. The Loan of 1915 was granted the same privileges and immunities as the 39r Perpetual Rentes, while the Loan of 1916 was afforded the same rights and privileges as the Loan of 1915. The following were received in payment for subscriptions to both loans, cash (specie, banknotes of the Bank of France and the Bank of Algeria, warrants, and cheques), Bons de la Defense Nationale subscribed to or renewed before November 20, 1915, and October 1, 1916, Obligations de la Defense Nationale, 3Vz^ '^ Redeemable Rentes fully paid for prior to January 31, 1915, and, in the case of the Loan of 1915, 3% Perpetual Rentes. The bonds of the Loan of 1915 are accepted by the Bank of France at 75% of their face value as collateral for loans. By the Law of October 26, 1917, the bonds of both loans are accepted at 87V2% in payment of the Excess War Profits Tax provided that it be shown that they were in the possession of the taxpayer for one year prior to October 24, 1917. The principal and interest of the National Defense Loans of 1915 and 1916 are exempt from all French taxes and from the special stamp tax. Both loans are quoted *'ex-coupon" 15 days before the interest dates. NATIONAL DEFENS LOAN DATE OF ISSUE MATURITY RATE OF INTEREST INTEREST PAYAI NATIONAL DEFENSE LOAN OF 1917 (Also known as the Third War Loan and as the 4% Rentes of 1917) NATIONAL DEFENSE LOAN OF 1918 (Also known as the Fourth War Loan, the 4% Rentes of 1918 and as the Liberation Loan) December 16, 1917 October 16, 1918 No fixed date of matu- rity, but redeemable^ in whole or in part, at par on and after Jan- uary 1, 1943, at the option of the Govern- ment. No fixed date of matu- rity, but redeemable, in whole or in part, at par on and after Jan- uary 1, 1944, at the option of the Govern- ment. NOTE. To prevent depreciation in the market value of the National Defense Loans, the Law of October 26, 1917, provided that there should be set aside monthly an amount of 60,000,000 francs — which was increased, by the Law of January 17, 1918, to 120,000,000 francs beginning on January 1, 1918— to constitute a fund to be used to purchase these bonds in the open market. The Laws of October 26, 1917, and September 19, 1918, prescribed that in no case should such purchases be made in excess of the following prices: For the 5% Rentes issued in 1915 and 1916: 87.50 plus interest accrued during the quarter. For the 4% Rentes issued in 1917: 68.60 plus interest accrued during the quarter. For the 4% Rentes issued in 1918: 70.80 plus interest accrued during the quarter. Whenever the unexpended balance of this fund exceeds 360,000,000 francs, the monthly payments will be suspended, but they will be resumed when such balance falls below 360,000,000 francs. This fund is administered by the Caisse d'Amortissement under the supervision of the Commission de Surveillance, and the bonds thus purchased are immediately cancelled. 4% March 16th, June 16th, September ll and December 16t in Paris. 4% January 16th, April 16th, July 16th and October 16th, .OANS (Continued) MOUNT OUTSTANDING Price at Which Issued Approximate Cost at Date of Issue If Rate of Exchange Had Been at THE Normal (I Franc=is.3 CENTS) Principal and interest Free From French Taxes If Bonds Are Held by NON- ' Residents REMARKS n December 31, 1919, , 12,961,300,000 francs. n December 31, 1919, 30,465,875,000 francs. 68.60% $132.40 per 1,000-franc bond 70.80% $136.65 per 1,000-franc bond Yes Yes Issued under the Law of October 26, 1917, which authorized the emission of "the amount of 4% Perpetual Rentes necessary to produce an effec- tive capital of ten milliards" (10,000,000,000 francs), the full partic- ulars of this loan were given in the President's Decree of October 31, 1917, and in the Order of the Minister of Finance on November 1, 1917. It was offered to public subscription from November 26 to December 16, 1917. , ^ ... J The securities are in three forms: (1) Coupon bonds to bearer; (2) Mixed Rentes — i. e., bonds registered as to principal only; and (3) Fully registered bonds — principal and interest. The coupon bonds to bearer are issued in denominations of 100, 200, 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000 and 100,000 francs principal, producing respectively 4, 8, 20, 40, 80, 200, 400, 800, 2,000 and 4,000 francs income per annum. The registered bonds are issued in all de- nominations. In addition to cash, banknotes, warrants and cheques, the following _ were accepted in payment of subscriptions to this loan: Bons de la Defense Nationale subscribed to, or renewed, before November 26, 1917; Obli- gations de la Defense Nationale; 3'/:% Redeemable Rentes fully paid for prior to January 31, 1915, or entitled to benefit under the Laws of March 31, 1915, and June 30, 1917 — the value of the last three being computed as of December 16, 1917. This National Defense Loan was granted the same privileges and immunities as the loans of 1915 and 1916, and its bonds are accepted in payment of the Excess Profits War Tax. The principal and interest are exempt from all French taxes, including the special stamp tax. The bonds are quoted "ex-coupon" 15 days before the interest dates. Authorized by the Law of September 19, 1918, and the particulars fully set forth in the Presidential Decree on September 24, 1918, and the Order of the Minister of Finance on September 25, 1918, these 4^/< Rentes were offered to public subscription from October 20 to November 24, 1918. This issue is in three forms: (1) Coupon bonds to bearer; (2) Mixed Rentes — i. e., bonds registered as to principal only; and (3) Fully reg- istered bonds — principal and interest. The coupon bonds to bearer are in denominations of 100,200,500,1,000,2,000, 6,000, 10,000, 20,000, 50,000 and 100,000 francs principal, producing respectively 4, 8, 20, 40, 80, 200, 400, 800, 2,000 and 4,000 francs income per annum. The registered bonds are in all denominations. This issue was granted the same privileges and immunities as the National Defense Loans of 1915, 1916 and 1917. No limit was placed on the amount of bonds to be issued, but a large part of this loan was floated by the conversion into it of previous issues. Apart from cash, banknotes of the Bank of France, etc., the following were received in payment of subscriptions to this loan: Coupons of French Rentes matured or to mature on November 16 and December 16, 1918; Bons de la Defense and Treasury bonds emitted before October 20, 1918; Obligations de la Defense Nationale; 3Vi% Redeemable Rentes fully paid for prior to January 31, 1915, or entitled to benefit under the Laws of March 31, 1916, and June 30, 1917; and, to the extent of not more than half of each subscription, coupons of loans issued or guaranteed by the Russian Government, matured or to mature during 1918, held in France by Frenchmen. Like the preceding National Defense Loans, this issue is accepted in pay- ment of various Government taxes. The principal and interest of this loan are exempt from all French taxes, including the special stamp tax. The bonds are quoted "ex-coupon" 15 days before the interest dates. LAST INTERNAL LOAN ISSUEI LOAN * DATE OF ISSUE MATURITY RATE OF INTEREST INTEREST PAYAB NATIONAL 5% AMORTIZABLE May 1, 1920 No fixed date of matu- s% May 1st and LOAN rity, but redeemable, in series of 25,000,000 francs capital each, by semi-annual draw- ings on March 16th and September 16th, beginning on Septem- ber 16, 1920, and ex- tending over a period of 60 years, terminat- ing in 1980. The bonds thus drawn will be redeemed at 150% of their par value at the next in- terest date. Bonds not thus drawn are redeemable at 150% of their par value at any time, at the option of the Government. ■ November 1st, in France. FRENCH GOVERNMENT LOANS FLOATEI LOAN DATE OF ISSUE MATURITY RATE OF INTEREST INTEREST PAYAE French portion of the ANGLO- FRENCH EXTERNAL LOAN TWENTY-YEAR, 5>4%, GOLD BONDS October 15, 1915 April 1, 1917 October 15, 1920 April 1. 1937 5% 5^% April 15th and October 15th. i April 1st and October 1st. BY THE FRENCH GOVERNMENT AMOUNT OUTSTANDING PRrCE AT Which Issued Approximate Cost at Date of Issue If Rate OF Exchange Had Been at the Normal (1 FRANC=19.3 CENTS) Principal AND Interest Free From French Taxes If Bonds Are Held by Non- residents REMARKS tn April 15, 1920, 15,730,000,000 francs. Par if fully paid; 101 if paid in install- ments Yes $193.00 $194.93 per 1,000-franc bond Issued under authority of the Law of December 30, 1919 — which fixed no limit to the amount — the particulars of this loan were fully set forth in the Presidential Decree and In the Order of the Minister of Finance, both dated January 9, 1920. It was offered to public subscription from February 19 to March 20, 1920. The securities are in two forms only: (1) Coupon bonds to bearer. In denominations of 100, 200, 4O0, 500, 1,000, 2,000, 4,000, 10,000 and 20,000 francs principal, producing respectively 5, 10, 20, 25, SO, 100, 200, 500 and 1,000 francs income per annum; and (2) Regis- tered bonds — principal and interest — in multiples of 100 francs principal. It was specifically provided that *'no mixed securities will be created*' (i. e., bonds registered as to principal only). Subscriptions were payable (1) at par If made in one installment, or (2) at 101 if made in four installments, viz.: 25% down, 25% on May 1, 1920, 25% on June 16th and 26% on August 1, 1920, or within ten days after those dates. The following were accepted in payment of subscriptions: (a) cash — I. e., specie, banknotes of the Bank of France, the Bank of Algeria or the issuing banks of the French colonies — ; (b) warrants of clearing houses or cheques to the order of authorized Treasury agents; (c) coupons of the 4% and 5% National Defense Loans matured or to mature between January I and March 31, 1920; (d) Bons de la Defense Natlonale and Treasury bonds Issued before February 19, 1920; (e) Obligations de la Defense Nationale emitted prior to that date; and (f) 3y2% Redeemable Rentes If fully paid before January 31, 1915, or entitled to benefit by the Laws of March 31, I9I5, and June 30, 1917. In the case of several of these Issues, an adjustment of interest and accrued amortization pre- mium was required. The bonds of this National 5% Amortizable Loan will enjoy all the privileges and Immunities granted to the various French Rentes. They are negoti- able In the open market, will — if fully paid for — be accepted by the Bank of France at 80% of their face value as collateral for loans, and matured coupons may be utilized in payment of taxes. The principal. Interest and premium of this loan are exempt from all French taxes. Including the special stamp tax. N THE UNITED STATES AND NOT YET MATURED MOUNT OUTSTANDING Price at Which Issued Principal and Interest Free From French Taxes If Bonds Are Held by Non- residents REMARKS ■50,000,000. The total Anglo-French Loan authorized and out- standing is $500,000,- 000. 98 ;i May 7, 1920, '52,110,000. Par Yes Yes (1) Coupon bonds to bearer in denominations of $100, $500 and $1,000, which may be regis- tered as to principal only, and (2) Registered bonds in denominations of $1,000, $10,000 and $50,000 and authorized multiples. Coupon and registered bonds are interchangeable. This loan is a joint and several obligation of the Governments of the United Kingdom of Great Britain and Ireland and of the French Republic. One-tenth of the French half and one-tenth of the British half are for Russia. The securities of the Anglo-French External Loan are convertible, at the option of the holder, either not later than April 15, 1920, or — provided that notice were given on or before April 15, 1920 — at maturity, at par for par, into the 15 — 25 year. Joint and Several, 4V2%, bonds of the Governments of the United Kingdom of Great Britain and Ireland and of the French Republic, maturing on October 15, 1940, but redeemable, in whole or in part, at par and accrued interest, on any interest date~ on or after October 15, 1930, upon three months' notice. The principal and interest of this latter issue are payable in New York City in United States gold coin, free from deduction for French or British taxes, present or future. Both the principal and interest of the Anglo-French External Loan are payable at the office of J.«P. Morgan A Company, New York, in United States gold coin without deduction for French or British taxes, present or future. (1) Coupon bonds to bearer in denominations of $100, $500 and $1,000, which may be regis- tered as to principal only; and (2) Fully registered bonds — principal and interest — without coupons, in denominations of $1,000 and $10,000. Coupon bonds to bearer may be registered as to principal only at the Central Union Trust Company,, 80 Broadway, New York. Coupon bonds may be exchanged for fully registered bonds and vice versa at the Central Union Trust Company, upon payment of the fee prescribed by the French Government. This issue represents the converted portion of the Government of the French Republic, Secured Loan, Convertible, 5V2'/^* two-year, gold notes, dated April 1, 1917. which were issued in New York at 99 and interest, to the amount of $100,000,000, and which matured and were redeemed on April 1, 1919, with the! exception of the notes thus converted. The principal and interest of these Twenty-year, Sy2%, gold bonds are payable, at the option of the holder, either at the office of J. P. Morgan & Company, New York, in United States gold coin, or at the Caisse Centrale du Tr^sor Public In Paris, in French francs, at the rate of 5.16V8 francs to the dollar. Both principal and interest are exempt from all French taxes, present or futurv. GOVERNMENT OF THI INTERNA] LOAN MONETARY RESTORATION THREE-YEAR TREASURY BONDS 5% NATIONAL RESTORATION INTERNAL LOAN DATE OF ISSUE December 1, 1918 June 1, 1919 MATURITY December 1, 1921 RATE OF INTEREST INTEREST PAYAB 5% No fixed date of matu- rity, but redeemable at par on and after June 1, 1934, at the option of the Govern- ment. 5% June 1st and December 1st. June 1st and December 1st. The following Internal Loans of the Kingdom of Belgium are purposely omitted from this list since they possess but little interested for American investors, save in rare cases: (1) 214% PERPETUAL RENTES (income bonds), issued in 1842 to the amount of 389,417,632 francs, which represented Belgium's share in the national liability of The Netherlands by virtue of the Treaty of November 5, 1942, which brought about the separation of the two kingdoms. Interest dates, January Ist and July Ist. Amount outstanding, 219,959,631 francs. (2) 3% PERPETUAL RENTES, First Series, issued from 1895 to 1898 to the amount of 544,956,275 francs for the conversion of the 3^% Belgian debt (first series), the redemption of the con- cessions to the Antwerp-Ghent, Grand Central and Liege-Limburg railways and for other pur- poses. Interest dates, January 1st and July 1st. Amount outstanding, 516,822,975 francs. 3% PERPETUAL RENTES. Second Series, issued between 1873 and 1913 to the amount of 2,999,686,582 francs to provide funds for the purchase of railways and the execution of public works. Interest dates. May 1st and November 1st. Amount outstanding, 2,856,808,982 francs. 3% PERPETUAL RENTES, Third Series, issued in 1895 to the amount of 259,896,600 francs for the conversion of the Belgian 3 % % bonds, third series, and for other purposes. Interest dates, February 1st and August 1st. Amount outstanding, 244,932,700 francs. (NOTE. The 2%% Perpetual Rentes (Netherlands' debt) and the 3% Perpetual Rentes of all three series are redeemable by a cumulative sinking fund of 3% per annum, utilized semi-annually for amortization or for the purchase of bonds in the open market when the price is below par. When the price is above par, the action of the sinking fund is temporarily suspended. Funds not utilized for the purchase of bonds are transferred to the Budget of Extraordinary Revenue, 3.3% of the funds thus transferred being employed as a supplemental sinking fund operating in the same manner as the original sinking fund.) (5) 3% STERLING LOAN, issued in London in February and March, 1914, to the amount of £12,000,000. Redeemable by 1939 by annual purchases under par or at par, by annual draw- ings in January of each year. Interest dates, February 5th and August 5th in London, Brussels and Antwerp, free from Belgian taxes. Amount outstanding, £12,000,000. (3) (4) I INGDOM OF BELGIUM DANS OUNT OUTSTANDING December 26, 1919, 040,342,700 francs. Price at Which Issued Par Approximate Cost at date of Issue If Rate OP Exchange Had Been at the Normal (! FRANC=I9.3 CENTS) Principal AND Interest Free From Belgium Taxes If bonds Are Held by Non- residents REMARKS $193.00 per 1,000-franc bond March 26, 1920, 450,765,800 francs. 95% No $183.35 per 1,000-franc bond Principal, no; interest, yes. Coupon bonds to bearer in denominations of 100^ 500, 1,000 and 10,000 francs principal. This Monetary Restoration Loan, authorized by the order-law of Novem- ber 9, 1918, was issued for the purpose of withdrawingr from circulation the German money issued in Belgium during: the war. In payment for this loan, the Belgian Government accepted (1) German marks, to a maximum of three-fourths of any subscription, at the rate of one mark per 1.25 Belgian francs. Apart from German coin, it also accepted the banknotes of certain German banks — such as the Reichsbank* Reichskassenscheine and Darlehenkassenscheine — and of the issuing banks of the Confederated German States — such as the Sachische Bank, Bayerische Bank, etc.; and (2) Belgian francs at par, to a minimum of one-fourth of any subscription, as well as "the banknotes of the Depart- ment of Emission of the Societe Generate de Belgique, the overdue interest of registered Rentes, matured interest coupons of the obligations of the direct and indirect Public Debt and of the bonds of the Belgian Treasury.** Banknotes of the Banque Nationale de Belgique and banknotes of the Banque de France at par were likewise accepted in payment for subscrip- tions. This Monetary Restoration Loan was granted no privilege of conversion into future Government issues. The principal and interest are payable, in Belgian francs, at the Banque Nationale de Belgique and its agencies. The interest is, however, subject to a tax of two per cent. There are no paying agencies in the United States. ( 1 ) Coupon bonds to bearer and (2) Fully registered bonds (principal and interest), both in denominations of 100, 200, 500, 1,000, 2,000, 5,000 and 10,000 f rakes. Coupon bonds to bearer are exchangeable for registered bonds. Bonds are registerable at the Banque Nationale de Belgique, but the regulations governing this registration are rather complex, e^ecially in respect to non-residents of Belgium. A cumulative Sinking Fund, created by setting aside annually ^2% of the par value of the issue outstanding, will be utilized to amortize this loan by purchases, in the open market, of bonds for redemption. In case that the market price exceeds par, the purchases will be temporarily sus- pended. Belgian Treasury bonds, with the exception of the Monetary Restoration, three-year, 5%, bonds, were accepted at 95% in payment for the Na- tional Restoration Loan. The principal and interest are payable Nationale de Belgique and its agencies, from all Belgian taxes. There are no States, but coupons may be collected, the Guaranty Trust Company of New exchange. All coupons and all interest on registered bonds become void five years after the date when they fall due. The last coupon attached to the National Restoration bonds is dated June 1, 1942. Belgian francs at the Banque The coupons only are exempt paying agencies in the United through the Brussels office of York, at the current rate of INTERNA] LOAN 5% INTERNAL PREMIUM LOAN DATE OF ISSUE MATURITY May 15, 1920 No fixed date of matu- rity. Redeemable at 150% (in Belgian francs) in 75 years by annual drawings be- ginning on March 1, 1921. Bonds drawn on March 1st will be redeemed at 750 francs each on the first of May follow- ing, through the op- eration of a cumula- tive Sinking Fund. The entire issue is call- able, as a whole, on and after May 15, 1940, but at a re- duced premium. RATE OF INTEREST 5% INTEREST PAYAB May 15th and November 15t EXTERNAL LOANS FLOATED IN TH LOAN DATE OF ISSUE MATURITY RATE OF INTEREST INTEREST PAYAE EXTERNAL GOLD LOAN > consisting of (1) One-year gold notes January 1, 1920 January 1, 1921 6% January 1st (2) Five-year gold notes January 1, 1920 January 1, 1925 6% July 1st. 1 TWENTY-FIVE YEAR EXTER- ■ NAL GOLD LOAN, 7^2% SINK- ING FUND REDEEMABLE June 1, 1920 On or before June 1, 7/2% June 1st and BONDS 1945. Redeemable on June 1st of any year until and includ- ing June 1, 1945, at 115% of the princi- pal, plus accrued in- terest, through the operation of the Sink- ing Fund or other- wise. December Is : OANS (Continued) UOUNT OUTSTANDING Price at Which Issued Approximate Cost at Date of Issue If Rate OF Exchange Had Been at THE Normal (1 FRANC=19.3 CENTS) issue of 2,500,000,- *00 francs was au- horized, and is out- standing. 499 francs per 500-franc bond $96.29 per 500-franc bond Principal AND Interest Free From Belgium Taxes If Bonos Are Held by NON- Residents Yes REMARKS Coupon bonds only in the single denomination of 500 francs. To meet the interest charges, the premium and the redemption of principal, the Belgian Government will set aside annually a fixed amount of about 136,686,750 francs. The first drawing on March 1, 1921, will retire 15.600 bonds (7,800,000 francs capital). The interest on all bonds retired will be added each year to this cumulative Sinking Fund, thereby increasing the number of bonds to be drawn in each subse- quent year. The entire issue outstanding can be called, at the option of the Government, on and after May IS, 1940. "In that case, the securities will all be redeemed at the same amount, that is to say, the capital of 500 francs augmented by the average value of the premiums recalled, at the rate of S%, on the date fixed for the prior redemption.*' Public subscriptions to this loan were opened on February 12th and were closed on March 6, 1920. This issue is listed on the Brussels Bourse. The principal and interest are payable in Belgian francs at the Banque Nationale de Belgique and its agencies, but may be collected at the current rate of exchange, through the office of the Guaranty Trust Com- pany of New York at Brussels. NITED STATES AND NOT YET MATURED 10UNT OUTSTANDING April 2, ; 6,400,000 18,600,000 1920, June 18, 1920, 550,000,000, which vas the total amount ssued. Price at Which Issued 99 953/4 Principal AND Interest Free From Belgium Taxes If Bonds Are Held by Non- residents 97% and interest Yes Yes Yes REMARKS Coupon notes only in the single denomination of $1,000. At any time before the maturity of these notes, the holders have the option of surrendering their notes and of requesting the Fiscal Agents, J. P. Morgan &. Company and thr Guaranty Trust Company of New York, to sell for each note 11,000 Belgian francs at th» market rate, but not less favorably than 11 francs to the dollar (i. e., 9.09 cents pel franc). In consequence of such sale, the holder will receive par and interest for each note thus surrendered, together with one-half of the resulting profit, the other half being retained by the Belgian Government. The noteholder is to pay all necessary commissions, but not in excess of y4% of the par value of the notes surrendered. Such an option operates during the life of these notes as a "call" on Belgian exchange at the rate of 11 francs to the dollar. The Belgian Government has agreed, in case it offers in the future any loan secured by a lien on any of its specific revenues or assets, to secure these notes pro rata with any subse quent loan. The principal and interest of these notes are payable in United States gold coin at J. P. Morgan & Company or at the Guaranty Trust Company of New York, "without deduction for any Belgian taxes, present or future." Coupon bonds to bearer in denominations of $500 and $1,000 only. In the loan contract under which these bonds are issued, the Belgian Government has obli- gated itself to pay to the Trustees of the Sinking Fund, in New York, in United States gold coin on or before March 10th of each year from 1921 to 1945, both inclusive, an amount not less than $2,300,000 per annum, which is to be utilized by the Trustees of the Sinking Fund for the redemption by lot on the first of June following each of such payments and at a price of 1159r of the par value, together with interest accrued to the date of redemption, of not less than $2,000,000 principal amount of the bonds of this loan. The Belgian Government has also covenanted that, in case it offers for public subscription any^ future loan secured by a lien on any specific revenue or asset of the Kingdom of Belgium, the present issue shall be secured ratably with such subsequent loan. The provisions of the Sinking Fund are such that the entire issue will be retired on or before the date of maturity, June 1, 1945, at 115% of the principal or par value of the bonds. The principal, premium and interest of this loan are payable in United States gold coin of the present weight and fineness at the office either of J P. Morgan & Company or of the Guaranty Trust Company of New York, Fiscal Agents of the Belgian Government, in New York, without deduction for any Belgian taxes, present or future. W. B. HiBBS AND Company I MEMBERS NEW YORK STOCK EXCHANGE BOSTON STOCK EXCHANGE PHILADELPHIA STOCK EXCHANGE WASHINGTON STOCK EXCHANGE NEW YORK COTTON EXCHANGE CHICAGO BOARD OF TRADE HiBBS BUILDING WASHINGTON, D. C. 'T^HE information herein contained has ■'- been taken from authoritative sources and is believed to be correct, however, guaranteed. Its accuracy is not July, 1920. W. F. ROBERTS CO. WASHINGTON D. C.