The question is whether interest on borrowed money for the construction of the railway should be charged to the Construction account.
In principle, it can be argued that interest on loan moneys should be charged to the construction account. (See the argument in para 2.)
But Sir F. Lugard does not carry this principle to its logical conclusion. He only proposes to charge interest on advances from the C.A. and on the advances from the special fund to the Construction account.
The special fund is composed of instalments from the C.A. and Sir F. Lugard does not propose to charge interest on the loan itself to the Construction account, which is inconsistent.
The argument is weakened by the fact that the sinking fund is postponed.
Yours,
2. The question, therefore, to be decided is whether interest on borrowed money for the construction of the railway should be charged to the Construction account.
As far as Railway finance is concerned, the alternative is to let the Colony borrow at a lower rate from the Crown Agents the amount necessary for the purchase of the (temporary) Railway station.
Page 300
Page 301
borrowed for the hars Kano railway
being charged to general reveive
is
I not to the construction account te that with the approval of the Treas.
balances
8
the Colony.
For
Att. Näre
12532
being pressed into the service
are being being
are
If
Dese
wed
ara
in building the live.
left out of account,
of constricting
real cost o
the line
ندار
1. Stubbs
There
ذا
also Tha
tta Stann
g
Greek Railway
么
Br. Hand was.
where
The
interest
Loan
raised for
છે.
of The Colony.
Lugard has
the
the expenditure
is charged to the general
Berefore. I think
In practice, Therefore.
precedents against
on
building
the railway expenditure
:
Si F.
him.
In principle
9 Thánh
Here
محكمة
/
deal
to be said fu
The
vieur
4 good
nat
be
interest
a
loan moneys
should
charged
+
constructin
account. (see
The argument in para 2.)
But
Si
F. Lugard
out
his
ACAMERA.
not carry
principle to its
logical conclusion. He only propores
to charge
to
Dha
interest
Construction
advances
account
from the C.A.
and on the advances from The way special
fund is the fund composed
it of.
Segment extraction
count withark on the instalments
No loan to the
sanely he ought interest
in
also
A
Viceroy of Wuchang,"
his own showing
advances from
to change
also
the surplus
I think the
argument whackened G fact that the carmen coment
Nthe sinking for postponed?
5 Yours
x which are
being repait
2.
at
which Sir F. Lugard
not
shoren.
aiming,
The question, Merethe, to decision
في
whether
Inst
So
much
That
8
interest on
bonowed money
railway should be charged
to
Construction
is open
account
fill
sectio
any
as
whether for
Na
Colonial frances,
hi
allou
exception, the
to the general
rule. bonover
Louvemence
skulo
particular case
So
for
for the
24
8
part of
the money
construction o
Concerned.
The alternative
the line
apparently is
Railway finance is concerned
(so far as Railway finance
matter Continue
to let the Colony
AA
Hey
are.
bonow
rate from the Crown Agents amount necessary
the Lands
near
4
گو
نیز
to let
at Bank
2.
the purchase of
the (temporary)
Railway station.
Page 300Page 301
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