30
12.2
proportion to the amount,
4 paid by cash, the time during which such amount
and the time
has remained unexpended,
But the question arises as to the manner in which these amounts shall be
invested. According to instructions received from the Secretary of State only
a certain balance may be retained in local Banking Institutions,
any excess to be remitted for investment in England; and as the aggregate
of the amount paid in respect of the Reclamation
Scheme is likely to be continually the cause of such excess, it would be His Excellency's duty to remit the greater part of the amount
to England, if the Colonial Government is to be regarded as liable to the contributors in respect of any principal.
But, as investment in England will involve, of course, a very considerable loss in interest and a risk of further loss on exchange in the event of a rise in the value of silver, His Excellency would be glad to know the views of the contributors on the point.
It must, however, be clearly understood that if, for the sake of higher interest, they desire to have the investment made in the Colony, the Government will not be liable for any loss sustained thereby, the Governor being quite satisfied that only on such terms will the Secretary of State consent to a relaxation of the rule with regard to investment in England.
I have
(Signed) A. Lister,
Acting Colonial Secretary.