8.—4

44

PUBLIC DEBT OF NEW ZEALAND. PROPOSED CONVERSION OF PORTIONS OF THE DEBT INTO CONSOLIDATED 4-PER-CENT. STOCK. View of the Working of the Scheme, and Capitalization of the Results.

Present Annual Charge. Proposed Further Issues of 4-per-Cent. Stock. Annual Charge up to the 1st November, 1929, after Conversion. Capitalization of the Eesults of the Conversion: Interest at i per Cent, per Annum. Description of Debt. For Interest. For Expenses at 1 per Cent. on the Interest. Total. For Premium on Conversion. For Stamps, Brokerage, and Costs attending Issue. Total. For Interest. For Expenses, at £550 per Million of Stock. Total. Annual Saving. ! Present Value of Decreased Annual Charge. Present Value of Increased Capital of Debt. Balance in favour of the Conversion. H On existing Debt. On Increase I of Debt. ! ■d.> £1,832,000 short dated (Current to 1 Jan., 1886.) 2,000,000 5-30 .. (Current to 1 Feb., 1904.) 4,000,000 5-30 .. (Current to 1 Feb., 1905.) 1,250,000 5-30 .. (Current to IS July, 1000.) (2.) £91,600 90,000 (3.) £229 225 (4.) £91,829 90,225 I (5.) Nil £60,000 (6.) £13,427 20,135 (7.) £13,427 80,135 ! (8.) £73,280 80,000 (9.) £537 3,205 (10.) (11.) £1,015 £74,832 1,144 j 84,349 (12.) £16,997 5,876 ! 11,751 (13.) (M.) £13,103 £12,404 72,129 | 86,292 (15.) £699 35,837 180,000 450 180,450 120,000 40,270 160,270 160,000 6,411 2,288 168,099 150,434 j 69,766 80,668 62,500 156 62,656 43,750 12,630 56,380 50,000 2,255 719 ■ 52,974 9,682 138,352 | 23,127 115,225 £9,082,000 424,100 1,060 425,160 223,750 86,462 310,212 363,280 ! General re expenses ! 12,408 ■duction of 5,166 : 380,854 44,306 374,018 I 141,589 Profit by reduction of charges of nian232,421 319 319 319 6,65! 4,847 | 380,535 44,825 Consolidated Debt ( £239,081 MEMORANDUM. If the proposed conversion be carried out — £ £ £ 1. The capital of the debt will be increased by (col. 7) '.. .. .. 310,212 4. The present value of these savings is (col. 13) .. .. .. .. .. 374,01! viz., For premiums on conversion (col. 5) .. .. .. .. 223,750 But out of this saving provision should be made for the redemption of the inFor commuted stamp duty, brokerage, and attendant expenses (col. 6) 86,462 creased capital of the debt, amounting to £310,212 (col. 7) The present value of which is (col. 14) .. .. .. .. .. .. 141,58! 2. The annual charge upon the existing debt (increased as above) will be, until the 1st November, 1929 (col. 11) .. .. .. .. .. 380,535 Thus leaving a balance in favour of the conversion of (col. 15) .. .. .. 232,42! viz., For interest upon the existing debt (col. 8) .. .. .. 363,280 To which should be added the present value of the saving of general expenses .. 6,65! For interest upon the increase of debt (col. 9) .. .. .. 12,408 For expenses of management (less £319 for general reduction of Making a Total Balance in favour of the conversion op .. £239,086 charges) (col. 10) .. .. .. .. .. .. 4,847 , £239,08! 3. The total of the " decreased annual charge," or the savings in the yearly outlay, will amount to, in all .. .. .. .. .. 623,307 viz., For the years 1884-85 .. .. £44,306 per annum, or £88,612 1886 to 1903 inclusive 27,309 , 491,562 For the year 1904 .. .. 21,433 . 21,433 For the years 1905 to July, 1906, in- AH BAILEY elusive 9,682 . 14,523 Vatph P Hattoy For the years 1884 to July, 1906, in- -KALPH l. jiaedi. elusive (general saving of expenses) 319 , 7,177 London, 24th Isovember, 18»3.