In Effect

When the White Star liner Homeric steamed out of New York harbor, there were on board Seymour Parker Gilbert and wife. Mr. Gilbert was en route to relieve Owen D. Young of the arduous duties of Agent General of Reparations (TIME, Sept. 15).

About the same time, a small group of men assembled in the Governor's rooms of the Bank of England and signed an important contract. Chief among the men present were the Rt. Hon. Montagu Collet Norman, Governor of the Bank of England; J. P. Morgan, representing U. S. underwriters; Dr. Schacht, President of the Reichsbank, and Dr. Hans Luther, German Minister of Finance, representing their Fatherland.

The contract was for the 800,000,000 gold marks ($200,000,000) loan to be advanced to Germany by the world under provisions of the Experts' Plan (TIME, Apr. 21). The U. S. will take $110,000,000; Great Britain -L-12,000,000 ($54,000,000; the remaining quarter will be divided among France, Switzerland, Holland, Belgium, Sweden, Italy.

The bonds mature in 25 years, are issued at 92 and bear interest at 7%. The total yield over the period is about 7 1/4%.

After the Bank of England meeting, J. P. Morgan made a few points:

"The essential cooperation of Continental markets has been assured; and confidence is expressed as to the success of the issue. The contract under which the loan of 800,000,000 gold marks is to be issued for the German Government, as provided under the Plan, was signed this afternoon. . . . The contract for the issue becomes effective upon receipt of official notification from the Reparations Commission that it has completed its action subordinating present reparations claims against Germany to the lien of this loan and that it has taken the necessary action for putting the Dawes Plan completely into effect."

The Reparations Commission met later, announced that all the guarantees for floating the loan had been secured, that the Experts' Plan was legally in effect.