2nd The Coan Bonds would undoubtedly find their way largely into the possession of the natives, giving them a greater permanent interest in the Colony than they possess. Retired and retiring Chinese Merchants and Traders have of late years been depositing their moneys in the local Banks, coming to the Colony to collect the interest annually rather than run the risk of the Mandarins squeezing them on the mainland, should they there show themselves possessed of means; and seeing they do this, it may be assumed they will invest considerably in Government Bonds safely.
3rd - The proximity of borrowers and lenders would much facilitate the transaction both at its initiation and year by year as payments of interest and repayments of principal are made.
If I am correct in surmise that, in London, to obtain par for the Loan, 5% interest will have to be given, then I can state, as a matter of fact, that the