Sessional_Paper_1894 — Page 421

No. 867.

The Honourable

417

7. This is, it appears to us, a moderate estimate of the results of the scheme: If the rate for capitalisation and investment had been taken in paragraph 5 at 31 per cent, instead of 3 per cent., the saving which the calculation in that paragraph shews would have been no less than £11,792, or, with the disappearance of the Debenture Sinking Fund Deficit, a total saving of £16,858. At present we are investing our Sinking Funds to produce £3. 12. 0 considerably more than the earlier investments of the Debenture Sinking Fund, and it appears to us probable that the eventual saving will approximate rather to the higher, than to the lower, figure re have named. Moreover if we succeed in effecting such sales of Stock as may be necessary at any premium above £100, some further saving will accrue which will probably suffice to provide for the expenses of the operation.

8. When the Conversion and Redemption are closed Hongkong will have but one form of Public Debt in this Country, a 3 per cent. Stock of £341,400, to which, for some years to come, any further loans which the Colony may require can be conveniently added, unless, as we hope may be the case, we can succeed in introducing a 3 per cent. Stock.

I have the honour to be,

Sir,

Your obedient Servant,

HONGKONG.

W. F. OMMANEY.

DOWNING STREET, LONDON, 24th April, 1894.

SIR,

Referring to our letter of the 2nd March last, I have the honour to inform you that Debentures of the 4 per cent. Loan Ordinance No. 11 of 1886 to the extent of £140,000 have been surrendered for conversion into 3 per cent. Inscribed Stock at par, and that the conversion is now closed.

I have the honour to be,

Sir.

Your obedient Servant,

THE COLONIAL SECRETARY,

$€.

&C.,

&c.

Hongkong.

W. F. OMMANEY.