A LOAN RAISED IN THE COLONY AND A LOAN RAISED IN LONDON (COMPARATIVE RESULTS OF).

Appendix to the Journals of the House of Representatives, 1899 Session I, B-22

8.—22

1899. NEW ZEALAND.

A LOAN RAISED IN THE COLONY AND A LOAN RAISED IN LONDON (COMPARATIVE RESULTS OF).

Laid on the Table of the House of Bepresentatives by leave.

Comparative Besults of a Ten Years' Loan to produce £250,000 Net if raised in London at 3 per cent, and at £94 for every £100, or if raised in the Colony at 3f per cent, at par. If raised in London, — There would require to be raised ... ... ... ... £270,280 to produce £250,000 net, after providing for raising loan at £94 and 1J per cent, for cost of raising such loan. If raised in the Colony, — There would require to be raised ... ... ... ... £250,312 as the cost of raising such loan would be nominal, say, £ per cent.

The Yearly Amounts required to be set aside for Loans. If loan is raised in London, —■ 3 per cent, on £270,280, interest ... ... .. £8,108 Sinking fund to provide for difference between selling-price, £94, and face-value of debentures, £100 ... ... £1,416 Cost of remittance of interest-payments to London, £ per cent, on £8,108 ... ... ... ... £20 £9,544 If raised in the Colony, — 3f per cent, on £250,312 ... ... ... ... ... £9,387 • So that, if the loan is raised in the colony, the saving will be £157 per annum in the yearly charges, besides having to provide at the end of the currency of the loan (ten years) only £250,312, whilst if the loan is raised in London there would be required to be provided at the" end of the currency (of ten years) of loan £270,280. Jas. B. Heywood, Treasury, Wellington, 28th August, 1899. Secretary to the Treasury.

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Comparative Besults of a Ten Years' Loan to produce £250,000 Net to be raised either in London at 3 per cent, interest and at £95 for each £100 of loan, or in the Colony at 3f per cent, at par. If raised in London, — There would require to be raised to allow for cost of raising loan at £95, namely, at 1£ per cent. ... ... ... ... £267,380 If raised in the Colony, — The cost of raising such loan would be nominal, say $• per cent., so that there would require to be raised ... ... ... £250,312

The Yearly Amounts required to be set aside for the Loan. If raised in London, — Would be 3 per cent, on £267,380 ... ... ... £8,021-4 Sinking fund to provide for difference between £95 and £100 ... ... ... ... ... £1,169-3 Cost of remittance of interest-payments, J per cent.... £20-21 £9,211 If raised in the Colony, — 3f per cent, on £250,312 ... ... ... ... ... £9,387 So that, if the loan is raised in the colony, the loss will be the payment of £176 per annum for ten years, but at the end of the ten years the colony would only require to provide £250,312 instead of £267,380 if the loan was raised in London. Jas. B. Heywood, Treasury, Wellington, 28th August, 1899. Secretary to the Treasury. Approximate Cost of Paper.— Preparation, not given; printing (1,375 copies), £1 2s. 6d.

By Authoiity : John Mackay, Government Printer, Wellington.—lB99. Price 3d.]