CO129-539-12 Loans for public works- military finances 26-2-1932 - 7-3-1933 — Page 2

1 Gov Conf

memorandume prepared by

Treasurer, and requesti

teley cath

on

10.3

the Colonial

lus

deus um

2

the proposed conversion

in November 1932

of the present

の

Puthur Works Loan of 1924.

1.A. Col Ser. 3.PN

15/2

Nem

amienny, of paragrafons in ensi tö (1)

DESTROYED UNDER STATUS

The Treasurer's Memo on Loan Finance

was written on February the 26th, and sets out

his estimate of the loan position, assuming the

continuation of an exchange rate of ls.5d. to

ls.6d. to the dollar.

Since then the exchange

rate has dropped to about 1s.3d., but the

additional expenditure which this will involve

will be set off to a considerable extent by an

increase in the duties payable in sterling.

Unless there is a further fall in the exchange,

the main contentions put forward in the Memorandum

are not likely to be upset, though the surplus

estimated for 1932 may not be realised.

In the Treasurer's opinion, if nothing

abnormal occurs, the Colony can easily advance

a further $ 1,500,000, which is all that will be

required for loan works in 1932.

We have already approved in principle

the plan to raise a loan by a bond issue to be

redeemed by drawings (paragraph 6 of No. 15 on

82850/31), and I think we can now approve the

proposals put forward for the conversion of the

Public Works Loan, 1927. I see no objection to

the