8.—16

4

Conversion of Loans, 30th April, 1886. —(Enclosure in the Actuaries' letter of the 5th May, 1886.)

sth May, 1886. A. H. Bailey, Ralph P. Hardy

Enclosure 5 in No. 1. Computation, showing the Amount of Interest that would be payable within the Financial Year 1886-87 upon Bonds of the Loans specified in the present Conversion, and the Amount payable on the Bonds that were converted. Five-per-cent. Loan of 1863: — Amount converted, £65,600 — £ s. d. Interest on above, at 5 per cent., from the 15th January to the 30th April (106 days) .. 952 11 0 £65,600 at £112 10s = £73,800—Interest on £73,800 at 4 per cent, for six months .. .. 1,476 0 0 Total .. .. .. .. .. .. £2,428 11 0 Interest on £05,000 had no conversion taken place, £3,280: saving in interest for financial year 1886-87 on conversion of £65,600, £851 9s. Five-per-cent. Consols (Annual Drawings) : — Amount converted, £38,200 — £ s. d. Quarter's interest on above, to the 15th April .. .. .. .. .. 477 10 0 Sixteen days' interest, to 30th April .. • .. .. .. .. .. 83 14 6 £38,200 at 106 = £40,492—5ix months's interest on £40,492, to the Ist November, at 4 per cent. .. 809 10 9 Total .. .. .. .. .. .. £1,371 1 3 Interest on £38,200 had no conversion taken place, £1,910 : saving in interest for financial year 1880-87 on conversion of £38,200, £538 18s. 9d. Five-per-cent. Ten-forties of 1876-77: — Amount converted, £1,292,700— £ s. d. Interest from the Ist March to the 30th April (sixty-one days), on the above at 5 per cent. .. 10,801 19 10 £1,292,700 at 102 = £1,318,554 —Six months' interest on the above, at 4 per cent., to the Ist November .. .. .. .. .. .. .. .. 20,371 1 7 Total .. .. .. .. .. .. £37,173 1 5 Interest payable on £1,292,700 had no conversion taken place, £04.635: saving in interest for financial year 18S6--87 on conversion of £1,292,700, £27,461 18s. 7d. Five-per-cent. of 1879: — Amount converted, £136,000 — £ s. d. Six months' interest on above to the Ist May .. .. .. .. .. 3,400 0 0 £130,000 at 103 = 140,080 — Interest on the above, at 4 per cent., for six months to the Ist November .. .. .. .. .. .. .. .. 2,801 12 0 Total .. .. .. .. .. .. £0,201 12 0 Interest payable on £136,000 had no conversion taken place, £6,800 : saving in interest for financial year 18S6-87 on conversion of £130,000, £598 Bs. Six-per-cent. Loan of 1860: — Amount converted, £19,000 — £ s. d. Interest at 6 per cent., for 120 days, to the 30th April, on £19,000 .. .. .. 374 15 10 £19,000 at £109 = £20,710—Six months' interest on above, at 4 per cent, to the Ist November .. 414 4 0 Total .. .. .. .. .. .. £788 19 10 Interest payable on £19,000 had no conversion taken place, £1,140: saving in interest on £19,000 for financial year 18S6-87, £351 os. 2d. Six-per-cent. Loan of 1863 : — Amount converted, £40,700 (Interest due March and September) ; £67,700 (Interest due June and December— £ s. d. Interest from the 15th March to the 30th April (forty-seven days) at 6 per cent., on £46,700 .. 360 16 2 £46,700 at 109 = £50,903—Interest for six months' on £50,903, at 4 per cent... .. .. 1,018 1 2 Interest from the 15th December to the 30th April (137 days), at 6 per cent., on £67,700 .. 1,524 12 10 £67,700 at 109 = £73,793—Interest on £73,793, at 4 per cent., for six months to the Ist November.. 1,475 17 2 Total .. .. .. .. .. .. £4,379 7 4 Interest payable on £114,400 had no conversion taken place, £6,864 : saving in interest for financial year 1886-87 on conversion of £114,400, £2,484 12s. Bd.

Fivesofl863. Redeemable 1914. 5-per-cent. TenForties. £1,292,700 at 102. (1800) Sixes of 1891. £19,000 at 109. (1803) Si: :es of 1891. Option 2 At 112 10 £65,600. Fives of 1879. £136,000 at 103. Option 1. Deb. and 110 £43,000. £40,700 at 109 (Mar. & Sept.) £67,700 at 109 (June & Dec.) [a) Capital of Debt — Premium on conversion Augmentation for Bank of England charges, stamps, and brokerage Share of incidental expenses .. £ 4,360 454 183 £ 8,200 699 275 £ 25,854 12,496 5,414 £ 4,080 1,327 569 £ 1,710 190 • 80 £ 4,203 482 196 £ 6,093 699 283 Total Augmentation of Debt [b) Annual Charge 4,997 To Jan. 1892, 2,205 After 1892, 1,944 To Jan. 1892, 411 After 1892, 672 17,250 (28 years) 9,174 2,991 43,764 53,459 5,976 5,679 1,986 839 4,881 2,003 7,075 2,991 \c) Annual Reduction in Charge '945 11,176 1,121 681 L073 2^425 [<*.) Total 'Reduction in Annual Charge [e) Liquidation of Increase in Debt — Annual sinking fund (4 per cent, interest) for forty-three and a half years ending the 1st November, 1929, for retirement of increase in debt as in (a) above 20,460 (28yrs.) 16^764 (1* yrs.) 3,923 (3-1 yrs.) 3,405 (5 yrs.) 8,305 (5 years) 12,125 (5 years) 43 9s. 61 10s. 79 15s. 380 10s. 51 19s. 17 5s. 42 9s.