B.—lla.

New Zealand Consols Convebsion. Results of the Operation, as affecting the Finances of the Colony, (a.) Capital of the debt— £ £ Immediate augmentation (4-per-cent. stock, created at par, to meet expenses) .. .. 17,351 Viz.: Bank of England initial charge, upon both converted debt and additional stock (£3,069,054) .. .. .. .. .. 2,201 Brokerage payable by the Bank of England .. .. .. 9,129 Stamp duty at Od. per cent, upon the converted debt (£3,651,700) .. 913 Stamp duty at 12s. 6d. per cent, upon the additional stock (£17,351) .. 108 Incidental expenses .. .. .. .. .. 5,000 Additional augmentation at the end of seven years .. .. .. .. .. 279,210 Viz.: Premium at 7 per cent upon the converted debt .. .. .. 255,619 Pour-per-cent. stock, created at par, to meet expenses then incident, viz. .. 23,591 Stamp duty at 12s. per cent upon the converted debt and premium (£3,907,31!)) .. .. .. .. ..23,444 Stamp duty at 12s. 6d. per cent upon the further additional stock (£23,591) .. .. .. .. .. .. 147 Total augmentation after seven years .. .. .. .. .. .. 296,561 .(&.) Annual charge— For the first seven years .. .. .. .. .. .. .. 183,279 Viz.: Interest at the rate of 5 per cent, upon the converted debt (£3,051,700) .. 182,585 Interest at the rate of 4 per cent, upon the additional stock (£17,3-351) .. 694 Eighth and subsequent years .. .. .. .. .. .. .. 157,931 Viz.: Interest at the rate of 4 per cent, upon the whole debt (£3,948,261) — Viz.: Converted debt .. .. .. .. £3,651,700 Premium upon conversion .. .. .. 255,619 Additional stock created .. .. .. 17,351 Further additional stock created .. .. 23,591 (e.) Annual reduction in charge— For the first seven years (sinking fund, as below, not allowed for) .. .. .. 100,452 Eighth and subsequent years (ditto) .. .. .. .. .. .. 125,800 (d.) Total reduction in annual charge— For the remaining years of the currency of the consols, say, 21-14 (sinking fund, as below, nor, allowed for) .. .. .. .. .. .. .. 2,481,976 («.) Liquidation of increase in debt — Annual sinking-fund (4 per cent, interest) for 44J years, ending Ist November, 1929, for retirement of increase of debt (£296,561), as in (a.) .. .. .. .. 2,511 A. H. Bailey. 18th May, 1885. Ralph P. Habdy. [Approximate Cost of Paper.—Preparation, Nil; printing (1,225 copies), £1 2s. 10d.]

By Authority: George Didsbury, Government Printer, Wellington.—lBBs.

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