Business: Current Situation: May 17, 1926

The most significant financial incident last week was the quiet withdrawal of the $100,000,000 bankers' loan to Italy. J. P. Morgan & Co. last fall headed a syndicate of 1,000 banks to float this loan, which was made immediately upon the arrangement of the Italian debt settlement. Enthusiasts oversubscribed the bonds at 94%, but their subsequent sale has been most lethargic. Last week the bankers withdrew their support, and the quotations dropped at once to around 89 with very little turnover.

The significance lies, not especially in a general distrust of European government bonds, but rather in the spreading reluctance of chattel...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!