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18. I do not, however, propose that the Colony should be committed abso- lutely even to this currency of 20 years, because, by making the issue a 5/20 loan, the Colony would be able to pay off its whole debt any time after five years, by giving the necessary six months' notice of its intention to do so, or could postpone the repayment at its option for 20 years. I transmit a Draft Ordinance which I have caused to be prepared, authorizing such a loan, from which you will perceive that a 20 years' currency involves, as I have already stated, the annual charge for interest and sinking fund of £15,000. I may add that for 15 and 10 years cur- rency respectively, the corresponding annual charges would be about £18,000 and £25,000.
19. The reason given by the Chief Justice for raising the loan locally, viz., the desirability of thereby giving trustees and executors the means of safe invest- ment, is one which would have weight, provided the object could be secured without additional cost to the revenue; but, in any case, the advantage would pro- bably be lost after a short time, owing to the debentures being absorbed by the various public companies; and, even if they were not so absorbed, the early repayment of the loan, which was an essential condition of the scheme to which the Chief Justice referred, would make this form of investment of little use for the purpose in question.
20. For the reasons which I have stated, and which I trust, will have the concurrence of the Legislative Council, to whose consideration I request you to submit this despatch, I am of opinion that the interests of the Colony will be best consulted by raising the loan in this country, and if only small sums will be required from time to time, it will be possible for the Crown Agents to adopt the course specified in the concluding words of my Despatch of the 30th June, until the aggregate of the sums borrowed reaches an amount which can conveni- ently be provided by the actual sale of debentures.
I have, &c.,
FRED. STANLEY.