13.
233
On the other hand the last Loan which we sued viz £2,000,000 for the Government of Lago 8 was, in deference to the views of the Secretary of St.te, iss ed directly in the shape of 34 per cent Stock but with unly qualified success. This has reacted on the popularity of the Luan so that the Laros Stock has stood at a price of more than 3 per cent below that of Sierra Leone although un its intrinsic merits the Lagus Luan is the better security.
14.
Such being the facts of the case it appeared to us that as further legislation was necessary in the case of the forthcoming Hong Kong borrowings, the better course would be to place the borrowing powers of the Colony on such a basis that we should he able in case of necessity to issue Loans in the shape of Stuck or Debentures as each case might require, and I would point out that in the absence of such powers we may un some occasion or other find ourselves forced, to issue a Loan in the shape of Stock as a very considerable discount and therefore on terms prejudicial to the credit of the Colony,
15.
I would add that the obligation which is imposed upon us by Loan Ordinances of making all issues "upon the best and most favourable terms that can be obtained" would appear to secure that the conditions of isque shall always be fully considered before a decision is arrived at as tu whether the issue shall be in the form of Stuck or Debenture
99.
I have the honour to he
Sir
Your Obedient Servant
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