CO129-365 - Governor Sir Lugard - 1910 [1-3] — Page 113

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exceed 9% of the face value of the coins, up to a sum of

say $500,000 from the Reserve Funds of the Colony. Since

the operation must obviously be kept secret it will be

necessary to legalize the expenditure later (when the

transaction is completed) by vote of the Legislative

Council. The Treasurer recommends that the money required

should be obtained by an overdraft on the Crown Agents,

on the Railway Account. I anticipate that the expenditure

of this sum will temporarily at any rate rehabilitate the

Subsidiary Silver Coinage of the Colony and if it should

be necessary thereafter to spend a larger sum than can be

met from current Revenue, in order to maintain the local

currency at par value, e.g. by undertaking further

operations of the same nature when the discount had become

BO heavy as to minimise the loss to be incurred (as at

the present moment), I will again submit proposals for

meeting the cost either from further accumulations of the

Reserve,

or possibly by a small gold loan. I shall be glad

if possible to have Your Lordship's concurrence by tele-

unysesp

-gram in order to avail of the present very high rate of

discount, and set at rest as soon as may be the present

inconvenience.