Quick Work

In Manhattan, the subscription books for the $150,000,000 Japanese loan (TIME, Feb. 18) were formally opened --15 minutes later they were closed; the loan had been oversubscribed.

Prying deeper into the transaction, however, the actual sale of bonds took about three days and 1,000 banks and investment houses were engaged in the distribution. On the day preceding the issuance of the bonds, potential investors were in full possession of all the details; the next day, when the subscription books were opened, the entire issue had actually been heavily oversubscribed.

Taken from any point of view the issue of the bonds was unusually rapid and reflected considerable confidence in the U. S. in the financial situation in Japan.

It was not without considerable justification that the undertaking was said to have been an example of a shrewd timing of the market and an instance of thorough preparation. For the former, the Japanese envoys were given credit; for the latter, John P. Morgan.

In Japan, the terms of the loan raised in the U. S. caused much resentment, some anger. Referring to the virtual 7% interest offered, the Asahi, Tokyo journal, said: "Such a high rate is our national shame. Is the flotation of a foreign loan sufficiently urgent to justify such disadvantageous conditions? Following the Russo-Japanese War, when we were less prosperous, loans were raised on better terms. The authorities are guilty of a serious blunder, and our business will find itself in a difficult position. Briefly, the new loan is a failure."