8.—4

46

PUBLIC DEBT OF NEW ZEALAND. NET RESULT OF THE CONVERSION OF THE FOLLOWING 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. Further Issue3 required of 4-per-ceut Stock. Annual Charge up to the 1st November, 1929, after Conversion. Capitalization of the Besults of the Conversion: Interest at i per Cent, per Annum. Description of Debt Converted. For Expenses at i per Cent on the Interest. Total. For Premium on Conversion. For I] iterest. For Expenses at £550 per Ou Increase Million of Debt. of Stock. iterest. Net Annual Saving. Present Present Balance Value of Value of in Decreased Increased favour of Annual Capital the Charge. of Debt. Conversion. For Interest For Stamps, Brokerage, and Costs attending Issue. Total. Total. On existing Debt. a.) £1,832,000 short dated (Current to 1 Jan., 1886.) 990,100 5-30 .. (Current to 1 Feb., 1904.) 1,910,300 '5-30 .. ,i (Current to 1 Feb., 1905.) 503,700 '5-30 .. (Current to 15 July, 190G.) £5,236,100 ' (2-) £91,600 (3.) £229 (4.) £91,829 44,666 I (5.) Nil (6.) £13,756 (7.) £13,756 (8.) £73,280 (9.) (10.) £550 j £1,015 1,603 567 (11.) £74,845 (12.) £16,984 (13.) (14.) £13,078 £12,708 (15.) £37i 44,555 111 29,703 10,371 40,074 39,604 41,774 2,892 35,459 18,149 17,3H 85,964 215 86,179 57,309 20,009 77,318 76,412 3,093 1,093 917 290 80,598 5,581 71,397 : '33,657 37,741 25,185 63 25,248 17,630 5,295 22,925 20,148 21,355 3,893 55,623 9,404 46,21! ! I 247,304 247,922 6,163 ! 2,905 reduction ;es .. 319 618 104,642 49,431 154,073 209,444 General of expens 218,578 29,350 175,557 I 73,918 Profit by reduction of charges of management of present | Consolidated Debt 101,63! 319 j 319 2,646 l j 218,253 29,669 { 6,65! £108,291 MEMOR JNDUM. By the conversion — £ £ 1. The capital of the debt will be increased by (col. 7) ... .. .. 154,073 viz., For premiums on conversion (col. 5) .. I.. .. .. 104, G42 For commuted stamp duty, brokerage, and attendant expenses (col. 6) 49,431 £ 4. The present value of these savings is (col. 13) .. .. .. .. .. 175,55' But, out of this saving, provision should be made for the redemption of the increased capital of the debt, amounting to £154,073 (col. 7) The present value of which is (col. 14) .. .. .. .. .. 73,911 2. The annual charge upon the existing debt (increased as above) will be until the 1st November, 1929 (col. 11) .. .. .. .. .. 218,253 viz., For interest upon the existing debt (col. 8) .. .. .. 209,444 For interest upon the increase of debt (col. 9) .. .. .. 6,163 For "expenses of management (less £319 for general reduction of charges) (col. 10) .. .. .. .. .. .. 2,646 Thus leaving a balance in favour of the conversion of (col. 15) .. .. .. 101,63! To which should be added the present value of the saving of general expenses .. 6,65! Making a Total Balance in favour of the conversion op .. £108,298 3. The total of the " decreased annual charge," or the savings in the yearly outlay, will amount to, in all .. .. .. .. .. 303,778 viz., For the years 1884-85 .. .. £29,350 per annum, or £58,700 1886 to 1903 inclusive 12,366 „ 222,588 For the year 1904 .. ..9,474 . 9,474 For the years 1905 to July, 1906, inclusive ... .. .. 3,893 , 5,839 For the years 1884 to July, 190G, inclusive (general saving of expenses) .. .. .. 319 , 7,177 A. H. Bailey. Ealph P. Hardy. London, oth December, 1883.