Internal War Loans Belligerent Countries

The following obligations of the Italian Government
were accepted in payment of subscriptions: (i) Ordinary
Treasury Notes at ioo, up to the total amount subscribed.
(2) Five-year Treasury Bonds due in 1917 at 99 and due
in 1918 at 97.80, plus accrued interest to date of payment.
These bonds were accepted up to 50% of the amount sub-
Scribed. (3) Bonds of the 4}^% War Loan of July, 1915,
by paying to the Government 2,y2 lire for each 100 lire of
par value converted. Interest at the rate of 6% per annum
was charged on payments in default until one month after
the succeeding installment date when the bonds subscribed
were subject to sale for the subscriber's account.
Fiscal Service—Principal and interest payable at designated
agencies of Italian Government in Italy and Italian colonies.
Taxation—Exempt from all present and future taxes.
Collateral Privilege—In addition to the privileges granted to
the three Italian Banks of Issue, approved by Royal Decree
of April 28, 1910, Number 204, in regard to advances on
government bonds, the banks were authorized to make advances
on bonds of this issue at 5% during 1916 and 1917.
Such loans were exempt from the special tax on advances.
Banking Syndicate—A banking syndicate in which the three
banks of issue, ordinary savings banks, ordinary credit
institutions, popular banks, cooperative credit companies
of every kind and many Italian banking firms and companies
participated, was formed to cooperate with the President
of the Cabinet and the Minister of the Treasury to
insure the successful flotation of the loan. This syndicate
presided over by the general manager of the Bank of Italy
was authorized to avail itself of the aid of the Deposit and
Loan Bank, the National Prudential Bank and the National
Insurance Institute with all its agencies; also to cooperate
with the Collectors of direct taxes and with the post offices
according to an agreement with the Minister of Finance
and with the Minister of Mails and Telegraphs.
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