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.