Despatch from Baring Brothers & Co. to Hon. A.J. Smith & Hon. J.C. Allen (2 August 1865)
By: Baring Brothers & Co.
Citation: Despatch from Baring Brothers & Co. to Hon. A.J. Smith & Hon. J.C. Allen (2 August 1865) in Journal of the House of Assembly of the Province of New Brunswick (1866).
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London, August 2nd, 1865.
GENTLEMEN,—We have the honor to acknowledge the receipt of your letter of yesterday, inquiring on what terms we would undertake to dispose of the Debentures to be issued by the Province of New Brunswick, and if it would suit us to grant the Province a cash credit for a period of five years, any amount advanced to be reimbursed within a year.
It would not be in accordance with our practice to open a credit for five years; but we are willing to allow the Province a credit of £25,000 (twenty five thousand pounds) for one year, to continue after that period, subject to be revoked by our giving six months previous notice, and we trust this arrangement will meet your views.
The charges for selling the Provincial Debentures would be as on former occasions—viz: our commission of one per cent., and a quarter per cent. brokerage; and we should charge an additional commission of one per cent. if we came under cash advance before making sales.
There will also be a stamp duty of 1/8th per cent. on the amount of the Debentures.
We should charge interest on advance at the rate of five per cent, per annum, allowing four per cent. when the account is in cash.
We think that thirty years will be a suitable period for the Debentures to run ; but it is desirable that they should all be of the same date, whether issued at once for the full amount, or by partial instalments, so that the whole should be reimbursable at the same period ; it will be advisable to adhere to the form of the Debentures now in circulation, and to make the dividends payable on the 1st January and 1st July.
We shall be glad to learn at what price yo would wish to effect sales, and if you would prefer to fix a limit at which we could open a subscription for the whole amount, or to make gradual sales as opportunities may offer. At present these securities are not much in demand and the market limited.
We have, &c.
(Signed) BARING BROTHERS & CO.
The Hon. A.J. SMITH, President of the Executive Council of New Brunswick,
The Hon. J.C. ALLEN, Attorney General of New Brunswick.