Wilson Municipals

Following the precedent of Mrs. Edith Rockefeller McCormick who borrowed $11,000,000 by issuing notes against stocks held in trust (TIME, July 1), last week Mrs. Matilda R. Wilson, widow of Motor-maker John F. Dodge, offered through her bankers $3,000,000 worth of certificates at 6% interest in a collateral trust of municipal bonds.

Chief difference between the McCormick and Wilson plans is that Heiress McCormick borrowed at 6% against stocks that might rise and offset interest charges, while Heiress Wilson borrowed at 6% against collateral that probably yields no more than 5%. The reason generally suspected to be in back of the Wilson move is that her collateral probably consists mostly of bonds that have no ready market. As the certificates are outstanding until 1932 and the collateral does not have to remain fixed, Heiress Wilson can therefore gradually sell her municipals as a market for them appears; meanwhile she has the $3,000,000 to spend or otherwise invest.