B.—6a

2

Practically this £163,702 represents a new loan for the Public Works Fund, and it may be assumed that there would have to be paid something like the following if it were necessary to go upon the London market for the money : — To provide £163,702 of cash plus expenses of raising, it would have been necessary to have created and sold— £ £ £173,000 stock at 96 ... ... ... ... 166,080 Interest at 34 per cent, on £173,000 ... ... ... 6,055 Management at £500 per million ... ... ... 86 Annual charge ... ... ... ... ... £6,141 This gives a saving of upwards of £2,700 of annual charge for interest; so that the difference between the conversion operation and obtaining a new loan may be set down as effecting a saving of £8,700 per annum. J. W. POYNTON, Secretary to the Treasury. R. B. Vincent, Accountant to the Treasury. The Treasury, Wellington, 23rd August, 1910.

Approximate Cost of Paper.—Preparation, not given ; printing (1,500 copies), £1 7s.

Authority : John Mackay, Government Printer, Wellington.—l9lo.

Price 3d.]