NO CONVERSION. TO THE EDITOR.

Otago Daily Times, Issue 10625, 21 March 1896, Page 3

NO CONVERSION. TO THE EDITOR.

Sre,—The mayor deserves tb.B thanks of the ratepayers for the clear and convincing way he has placed the figures and calculations before thfi council showing the great loss that the city woold incur by convertion; and I think the bank's premium, as advised, i# as low as could be advised, especially when we see the cost of Mr Leary's conversion—£10,500 sterling eonverted coating £1750, or, say, £17 for every £100 converted. Ths actuarial figures limply show what would be an equitable value given in exchange should both parties be desirous of making the exchange ; bat when one party desires to bay and the other party does not desire to sell, if yon mast bay yon must offer him some inducement to sell—not only over the actuarial figures, but also over the market price—or he will keep his bond, and you cannot make him sell. The saving of interest as printed is only annual for the next two years, as then bonds fall due of £20,900, which you will then get without paying a £9 boons for, releasing interest and sinking fund to the amount of £1672 ; or if you borrow the amount at 4 per cent., with the £ per cent, added, there will be a saving of 3£ per cent, interest and sinking fund, or £731 10s to be reduced from the amount problematically saved, and so year by year as the loans fall due during the next 12 years. But the interest payable on the premiums given would be payable every year until the expiry of the loans —say 30 years hones, —when the premiums would have to be paid, which, added to the amount of interest it wonld have co»t the ratepayers, would amount to a very large sum.—l am, &c, Dunediu, March 20. Accountant.