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-nent has done the same. He submits that there is no reason why exchange should not fall to a shilling.
The Treasurer and Mr. Messer are of opinion that the loan should be raised in London (where money can be had at less than 3¼% which with a Sinking Fund of 1% would mean an annual charge of something under 4%), inasmuch as exchange would have to drop from 1/5 to about 1/4¼ before the difference in the annual charges would be eliminated, assuming that the interest on a local loan would approximate to 4¼%.
We are however unanimously of opinion that such loan, if authorised, should be raised by the sale of Stock to such amount as may be required from time to time, for specified works and up to an authorised limit, as we believe that the possession of a large balance tends to extravagance in the expenditure of other moneys in the hands of Government.
......
Such loan would set free the larger portion of the proceeds of Land Sales in the next few years to be devoted to building up that reserve which the Colonial Office has more than once desired should be accumulated.
As an additional argument in favour of a loan it might be pointed out that the raising of $100,000 extra per annum to pay interest &c., thereon, entails the payment of only $20,000 per annum to the Military Authorities, whereas the raising of an additional $400,000 for payment of extraordinary works out of ordinary Revenue means the transfer annually of $80,000.
(Sd.) E. H. May,
Colonial Secretary.
(Sd.) A. M. Thomson,
Treasurer.
(Sd.) C. M. Messer.
4th July, 1908.
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-nent has done the same. He submits that there is no reason why er- change should not fall to a shilling.
The Treasurer and Mr. Messer are of opinion that the loan should be raised in London (where money can be had at less than 34% which with a Sinking Fund of 1% would mean an annual charge of something under 4%), inasmuch as exchange would have to drop from 15 to about 144 before the difference in the annual charges would be eliminated, assuming that the interest on a local loan would approximate to 44%.
We are however unanimously of opinion that such
loan if authorised, should be raised by the sale of Stook to such amount as may be required from time to time, for specified works and up to an authorised limit, as we believe that the possession of a large balance tends to extravagance in the expenditure of other moneys. in the hands of Governzant.
......
Such loan would set free the larger portion of the proceeds of Land Sales in the next few years to be devoted to building up that reserve which the Colonial Office has more than once desired should be accumulated.
As an additional argument in favour of a loan it might be pointed out that the raising of $100,000 extra per annum to pay interest &c., thereon, entails the payment of only $20,000 per aanum to the Military Authorities, whereas the raising of an addition- al $400,000 for payment of extraordinary works out of ordinary Revenue means the transfer annually of $80,000.
(sd.) E. H.. May,
Colonial Secretary.
(Sd.) A. M.. Thomson, Treasurer.
(Sa.) C.. Mol. Messer.
4th. July, 1908.
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