to that Ord;
the balance
the
cost is to be called in as the Govt may require it, & no question of interest thereon need arise.
Imagine that the money now in hand will not be lying idle for very long. The Govt is not bound by the terms of its Agreements with the Debtholders to turn this money to account by getting interest on it, but if it is invested any interest obtained will only be equitable to credit the fund with this interest obtained, which will have the effect of proportionately reducing the final call to be made upon each Debtholder; I object but I think the investment must be made by & in the name of the Govt, as to make the Debtholders liable for the loss in the Event investment failing.
I have trouble seeing why the investment should be made locally as they could doubtless get at least 4% interest. It is not short of amendment of the said Ord & a great amount of expense in supplementary agreements with such of the Debtholders as agreed to the plan, which agreements if not made under the Ord would have to be secured. For these reasons I say that the Secy of State considers the funds should be met in this Country, regarding Portland Cement Co., the question of possible loss by remitting the money back again arises; and little if any interest would necessarily have been received had the money been sent home as the Agents could for some time past have got it.
Probably so little interest has accrued against the Colony, any loss would be minimal. The Govt Agents should say therefore that the money should be remitted to England with instructions to draw this money when required for payments of the loan to be met in the Colony, should be set aside in the Treasury Chest, in accordance with instructions in the other despatch (No. 1590).
And add to the despatch No. 1590, that the Secy of State is surprised at the letter written to the Debtholders (within) which the instructions as to keeping Balances at the Banks in Hong Kong were blazed abroad to the world public, in a manner that was calculated to discredit the Banker, undesirable; and add that as some large part of the expenses of the work will no doubt...