868.51Refugee Loan, 1924/54
Speyer & Co. to the Secretary of State
[Received December 13.]
Sir: Referring to the Department’s request that American bankers furnish information regarding loans that they may be negotiating with foreign governments, we beg to submit the following concerning the loan to the Greek Government, for participation in which we are in negotiation:
The Greek Government proposes to issue $11,000,000 principal amount of its Forty-Year 7% Secured Sinking Fund Gold Bonds, being part of an International Loan known as the Refugee Loan of 1924, of an authorized amount of approximately £12,500,000 (to yield the Greek Government, say, £10,000,000). Of the Bonds constituting this loan, £7,500,000 principal amount have been sold, through public subscription, in London by Hambros Bank, Limited, and £2,500,000 principal amount are being offered in Greece by a group of banks, headed by the National Bank of Greece. Of the proposed Dollar issue, it is expected that $5,000,000 will be placed in London and the balance in the United States.
The purpose of this loan is to provide funds for the reestablishment in Greece of Greeks who lived in Turkey and who, in accordance with the Treaty of Peace with that country, are returned to Greece.
The entire loan will be issued under the auspices of the League of Nations.
We enclose a preliminary descriptive circular39 and trust that the Department will agree with us in believing that the participation of American bankers and the American public in this loan will be in harmony with the policy of our Government, to encourage our people to assist in the rehabilitation of European countries.
We call your attention to the fact that the amount of the Dollar issue has been increased to $11,000,000 principal amount from $10,000,000, which was the amount in contemplation when our Mr. Millhauser communicated with Dr. Young over the telephone yesterday.
Respectfully yours,
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