-3--
38
6. We would observe that issue to the public at so big a
discount as 93 offers a very great attraction to speculators.
Holders whose bonds were drawn at the first redemption date
would receive a bonus of seven points in addition to the 31%
interest, i.e, a return of 11.3% per annum if the drawing took
place one year after issue, or 18.8% per annum if it took
place six months after issue.
7.
Finally, it appears to be a question whether the whole
of the unused borrowing powers under Ordinance 11 of 1934 need
be exercised. The Government's desire for liquid surplus
assets may perhaps be met by converting into some other form a
part only of the $11,140,000 which it has advanced for loan
works. Moreover, some portion of that amount might well be
written off permanently as paid out of revenue seeing that,
during the period for which the issue has already been
postponed, the savings mentioned in the latter part of
paragraph 4 above have been, in effect, accruing.
I have the honour to be,
Sir,
Your obedient Servant,
Chamoni
for CROWN AGENTS.