CO129-554-1 Loans for public works 13-3-1935 - 30-11-1935 — Page 28

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Enclosure No.3.

27

To provide the cash necessary to amortise the Sterling Loan, Sinking Funds were sold out as also were our Investments on account of Surplus Funds and the balance was obtained from the cash subscribed by the Bondholders. Sinking Funds are, however, not included in the accounts as assets whereas "Investments" are so included and when sold the proceeds have to be credited in the books to cancel out the debit entry made when they were purchased. The result was that although these items produced sufficient cash yet as the proceeds of the sale of the stock had to be credited to "Investments" it meant that this sum was not available and a similar amount had to be debited against the loan account thereby increasing

item No.7 to $3,864,943.