13
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IV/20 CA. (W/C8 < extract fr. It hd).
CA. (11 ans) - inte
18 JAN 1932
14 to 0.A.G. 9 (~/C 12 u/ennels) A.1. 18.1.32
I have run through this, and made some marginal
comments; but time does not admit of any detailed
examination of the situation.
The proposal to raise money locally, if possible,
seems entirely sound. The plan of redemption
by drawings is sound, from the point of view of
the Govt:--it cuts out the heavy exchange risk,
and presumably it will not be unpleasing to
local investors.
The general loan position seems to want watching;
but rough calculations I have made--I am not
familiar with the pps:,or with the position--
suggest that, even apart from sinking funds in
hand, the loans issued, and contemplated, do not
exceed one and a half years' revenue. That is
not at all unsatisfactory.
My view has always been that we have been much
too accommodating in admitting,as charges against
loan funds, works which are not productive in
the commercial sense. In the case of developing
Colonies, there is a strong--and financially sound--
case for admitting such debit to loan moneys;but
17
in the case of what one may call established"
Colonies, where things have had time to settle
down and become stabilised, my view is that such
expenditure is not properly chargeable to loans.
Things like schools, jails, court houses, and so
No comments yet.
Private notes are available after approval.