41

8.—17

Conversion of Loans, 1886.

* To January, 1892. + Alter January, 1892. February, 1886. A. H. Bailey. Ealph P. Hardy. CoNVEKSION OF LOANS. 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 that would be payable if all the Bonds were converted. Five-per-cent. Consols (Annual Drawings) : — S, s. d. Amount in circulation, £2,043,400 — Quarter's interest on above, to the 15th April .. .. .. .. .. 25,542 10 0 Sixteen days' interest, at 5 per cent., to the 30th April .. .. .. .. 4,478 15 5 £2,043,400 at 106 = £2,166,004—5 ix months' interest, at 4 per cent., to the Ist November, 1886 .. 43,320 1 7 Total .. ■ .. .. .. .. .. £73,341 7 0 Interest payable, supposing no conversion had taken place, £102,170; saving in interest charge for financial year 1886-87, £28,828 13s. Five-per-cent. Loan of 1863: — Amount in circulation, £488,000 — Interest, at 5 per cent., from the 15th January to the 30th April (106 days), on the above .. 7,086 0 9 £488,000 at £112 10s. = £549,000 —Six months' interest, at 4 per cent., from the Ist May to the Ist November .. .. .. .. •■ .. •• •• 10,980 0 0 Total .. .. .. .. .. .. £18,066 0 9 Interest payable had no conversion taken place, £24,400; saving in interest charge for financial year 1886-87, £6,333 19s. 3d. Five-per-cent. Ten-forties of 1876, 1877 :— Amount in circulation, £3,500,000 — Interest from the Ist March to the 30th April (sixty-one days), at 5 per cent., on the above .. 29,246 10 2 £3,500,000 at 102 = £3,570,000—5 ix months' interest, at 4 per cent. (Ist May to the Ist November) 71,400 0 0 Total, 1886-87 .. .. .. .. ..£100,646 10 2 Interest payable had no conversion taken place, £175,000 ; saving in interest charge for financial year 1886-87, £74,353 9s. lOd. Five-per-cent. Loan of 1879 : — Amount in circulation, £524,000 — Interest from the Ist November to the Ist May on the above, at 5 per cent. .. .. 13,100 0 0 £524,000 at 103 = £539,720—Interest, at 4 per cent., for six months (Ist May to the Ist November) 10,794 8 0 Total, 1886-87 .. .. .. .. .. £23,894 8 0 Interest payable had no conversion taken place, £26,200 ; saving in interest charge for financial year 1886-87, £2,305 12s. Six-per-cent. Loan of 1860: — Amount in circulation, £93,100 — Interest on the above, at 6 per cent., from the Ist January to the 30th April (120 days) .. 1,836 910 £93,100 at 109 = £101,479—5 ix months'interest, at 4 per cent. (Ist May to the Ist November) .. 2,029 11 7 Total, 1886-87 .. .. .. .. .. £3,866 1 5 Interest payable had no conversion taken place, £5,586; saving in interest charge for financial year 1886-87, £1,719 18s. 7d. Six-per-cent. Loan of 1863: — 6—B. 17.

(1860) Sixes of (1803) Sixi is of 1891. Fives of 1914, £488,000. 5-per-cent. Tenforties. Fives of 1879. 44-per-cent. Fivethirties. Option 1. Option 2. 1891. £03,100 at 109. £201,500 at 109. £329,900 at 109. £3,500,000 at 102. £524,000 at 103. £2,946,100 at 101. Debenture and 110. At £11210s. (a) Capital of debt— Premium on conversion Augmentation for Bank of England charges, stamp, and brokerage Share of incidental expenses £ 8,379 959 £ 18,135 2,075 £ 29,691 3,398 £ 48,800 5,072 £ 61,000 5,186 £ 70,000 33,735 £ 15,720 5,099 £ 29,461 28,118 115 249 408 604 604 4,330 649 3,645 Total augmentation of debt.. 9,453 20,459 33,497 54,476 66,790 108,005 21,468 01,224 (Z>) Annual charge 4,102 8,878 14,536 24,400 227 22,192 144,323 21,819 120,293 (c) Annual reduction in charge .. 3,346 7,242 11,856 *24,627 121,699 *4,653 17,581 194,700 (28 years) 7,088 30,677 4,381 12,282 [d) Total reduction in annual charge (e) Liquidation of increase in debt — Annual sinking fund (4 per cent, interest) for retirement of increase in debt as in (a) above. 16,730 (5 years) 36,210 I (5 years) I 59,280 (5 years) 198,464 (28 years) 46,016 (1J years) 15,334 (3J years) 233,358 (19 years) 1,726 10/ (5 years) I 4,194 18/| (4$ years) 6,118 4/ (5 years) 1,072 16/ (28 years) 1,315 6/ (28 years) 70,621 6/ (1J years) 5,775 8/ (3J years) 2,182 2/ (19 years)