B.—6a

1910. NEW ZEALAND.

CONVERSION OF £500,000 GUARANTEED DEBENTURES, DUE 1915 (RETURN RELATIVE TO).

Laid on the Table by Leave of the House.

The net result of the conversion may be stated thus :— The public debt was increased, — £ 3J-per-cent. new inscribed stock ... ... ... 616,000 Guaranteed debentures converted ... ... ... 500,000 ■ 116,000 Less sinking-fund debentures redeemed ... ... ... 96,371 Net increase ... ... ... ... £19,629 Annual charge for interest lessened, — Original charge— £ 4 per cent, on £500,000 ... ... 20,000 4£ per cent, on £96,371 ... ... 4,337 24 ' 337 New charge— 3£per cent, on £616,000 ... ... ... 21,560 Decrease ... ... ... ... >## 2 777 Annual charge for management increased, — £500 per million on £616,000 ... ... ... 308 Less per cent, commission on payment of £20,000 interest ... ... ... ... 50 258 Net decrease... ... ... mas ... ... £2,519 Consequent upon the conversion, the accumulated sinking funds of the guaranteed £500 000 were released, the amount realized being as under :— 4 per cent, stock, £236,191 ss. 5d., sold for ... ... 247 413 7 li 3* per cent, stock, £10,052 12s. lid., sold for ... 9*700 4 0 Interest on securities received ... ... ... 2 95y 10 6 Amount realized ... ... ... zsw ... 260,073 2 5 Less applied to redemption of sinking-fund debentures "... 0 0 £163,702 2 5