150
OOP Y.
Enclosure No.
to Despatch No. 466 of the 34th. October, 1903,
Hinute by the Colonial Treasurer.
Hon. Colonial Secretary,
C. O.
46550
I have consulted the Chief Manager of
the Hongkong Bank and looked up terms of Shanghai Municipal Loans. and we are both agreed that the minimum robe of interest which this Government would bave to pay for a local Loan would be 5% and even then there would be grave doubt whether the Loan would be filled up.
The issue of $250,000 Hongkong Club Debentures fully secured by e Mortgage on the whole property re- sulted in applications for the sum of $30,000 only though inte- rest is at 3%.
The Shanghai Loans (redeemable in 30 years at most) are selling as follows:-
33
5%
108.
95
so that it would app-er to be very inprobable to float a local Loan at 5% even at a discount. The Chiet Manager and myself agree that (at the present rate of Exchange it would be exceed- ingly inexpedient to flost a local boen at 5% which might not be filled up, when a Loan can be gob in London at 344 with a small premium.
Insurance Companies can get 3 to 7% on their investments, so there would be little chance of depending on them and the number of small Investors in Robgkong is very small.
Besides, the investment of the Sinking Puod which would have to be in Gold would bring in the question of fluctuation of Exchange as regards repayment of the boan.
It appears to me therefore that the raising of a Silver Loan is absolutely out of the question, as compared with a Goll Loan at home.
29th. September, 1903.
(33.) A. M. Thomson,
Treasurer.
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