CO129-561-10 Estimates 1938 2-9-1937 - 23-9-1938 — Page 6

6

A

The authorised borrowing under the 1934

Dollar Loan Ordinance was $25 million. of this $14 million has been issued in the form of bonds at 99 carrying interest at 31% 1/25 th of the issue is to

be annually drawn for repayment at par.

all was taken up by the Banks.

Pratically

Against the unissued balance of the 1934

Loan there has been advanced already from surplus

balances a sum of $11 million i.e. rather more than the cash which would be forthcoming from the issue

of the balance of that Loan.

Nevertheless the Officer Administering the Government proposes to go on meeting the cost of these works (which we can agree to be of a character suitable to be charged to a loan) by means of advances from available surplus cash. If the surplus cash

is found to be insuffuent

est

the Officer Administering the Government expresses the belief that the balance of the 1934 Loan can be issued on approximately similar terms as at A above. The Crown Agents could no doubt give sound advice about the likely terms on which money

could be borrowed in London in present circumstances,

entiny

but this would not be

local circumstances, Waimate S

necessary before my poply.

y relevant to the

There is no doubt that the Water scheme

must go on. It is of the greatest importance from

the economic, social, and defence aspects, and the

proposal to meet the cost for the present out of

surplus funds advanced against a future loan, if that

becomes