CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 27

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ニコ

circumstances, I think it is clear that, as the

Governor points out, there would be no

advantage whatsoever in issuing a Loan

immediately unless there is reason to fear a

considerable increase in the rate of interest.

Moreover, even if the rate of interest were to

increase, I presume that this would result in

a depreciation of the securities in which any

issue of the Loan would have to be re-invested

at the moment.

The question of a rise in the rate of

interest is not one on which I am competent to

comment, though I am not aware that there is

any reason to fear a considerable increase in

the near future. Perhaps it would be as well

to consult the Crown Agents.

? Copy 9 and 10 to Crown Agents under

covering letter, saying that the S. of S.

disposed to agree with the Governor that the

whole question of fresh borrowing may be

deferred for the time being but that he will

be glad to have the observations of the Crown

Agents on the question of a possible increase

in the rates of interest in the near future.

P. Rogers

Si J. Campbell

4 Noors

૪.૫, ૩૪.

we

can put

Etus

que to the Crown Agents

ń such

Came

am

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ar

Thing

to comment themselves to.