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negotiated with individual banking-houses or syndicates of banks,
which, as a rule, have subscribed the whole loan at a fixed rate,
and thereafter, on their own account, have sold the bonds in the
market. While the loans up to and including 1892, have as a
rule been raised in the English, and partly in the German,
market, the following loans — excepting the loan for purposes of
conversion raised in 1897, the bonds whereof were mostly
retained by the original bond-holders — have chiefly been raised
in France.
With reference to the terms upon which the loans have been
raised it may be noted that the nominal rate of interest has been
4 % for the loans contracted between 1825 and 1851, for the
loans from 1858 to 1878, 4 ½ %, for the loans of 1880, 1884,
1892, 4 %, for the loans of 1880, 1894 and 1895, 3 ½ % and for
the loans of 1888, 1896 and 1897, 3 %, and that, with the
exception of the earliest loans and the loan of 1888, which was quoted
at 86 ⅛ %, they have been raised almost at par, thus for the loan
of 1895 (3 ½ %) 99 ⅖ and for the loan of 1896 (3 %) 98 ¼ %.
The repayment of the loans is done by means of gradually
increasing instalments, so that the aggregate amount of interest and
instalment for every term is about the same. The interest and
instalments are paid (for loans contracted since 1858) semi-annually
and the repayment takes place (for the loans contracted since
1874) either by redemption of a certain number of bonds, drawn
by lot, or by free purchase of bonds in the open market. The
time of reimbursement has been, for the loans contracted prior to
1874, 10 to 31 ½ years, but for the later loans it has been lengthened,
and has varied from 40 to 75 years. An exception to this rule
is formed by the internal loan for purposes of defence, contracted
in 1895, which is reimbursable in 24 years. The state has reserved
its right, either at any time (in the case of some loans now
redeemed) or after the expiration of ten (in the case of the loan
of 1892, seven) years, after due notice, to pay the whole of the
remaining principal or to increase the instalments on the loans.
The interest and instalments on the loans raised in foreign
countries are paid in more and more places, as the market in which
the state sells its bonds is extended; thus, as far as the later
loans are concerned, not only in Norway, but also in England,
France and Germany, and in the case of a few loans, also in
Sweden and Denmark.
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