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remitting the interest annually, and paying off in future years, a considerable premium per cent, and the annual charge on the Colony would be found to exceed by much the estimate of $15,000.
There is another, but minor disadvantage of sterling loan, and that is what usually obtains when borrowers and lenders are so far apart - the extra labor, trouble and inconvenience involved in conducting the business.
The advantages of a local loan, raised at the same rate of interest as sterling one, are, to consider, very important in some respects.
1st. The Government, when borrowing, will know exactly, and with certainty, that it has and will only have to repay what it borrows, and it will also know the exact amount of interest annually it would have to pay: no question as to the rate of Exchange between sterling and Dollars arising, which, judging by the positions of affairs, would be undoubtedly against the Colony.