2. Mortgage bonds of the Huando-Esperanza Corporation, 1926-1946, £120,000. Amount issued: £120,000 at the Banco Italiano by Señor Antonio Graña, in mortgage bonds of £100 denominations. Amortization: £3,000 semiannually in June and December of each year. Dates of interest payments: March 31, June 30, September 30, and December 31 of each year. Date of maturity: Loan to become extinguished in 20 years. The first amortization was made in December, 1926. Security: The cotton plantations Huando and La Esperanza in the Chancay Valley, owned by Señor Antonio Graña. Information furnished by the Ministry of Finance and Commerce to the Commission of Financial Advisers (Kemmerer, 1931). NOTE. The amounts noted in the following paragraphs are (or were) payable in Peruvian pounds, except the bond issues, principal and interest, which is payable in pounds sterling at the option of the bondholders. This fact was ascertained by a member of the commission of financial advisers by inspection of bonds now in the vaults of the Banco Italiano. As the bondholders will naturally seek payments in pounds sterling, the bond issue is shown in this currency. 1. Under contract dated December 17, 1926, the Government and Señor Antonio Graña formed a corporation by the name of "Irrigación de la Esperanza." 2. The purpose was to rent and sell, in small parcels, the irrigated land of the estate "La Esperanza," and, in particular, to irrigate the uncultivated land. 3. The capital of Lp. 61,174 was contributed in equal portions by the Government and Señor Antonio Graña. Any additional capital required to carry out the irrigation scheme was to be furnished by the Government. 4. At the time of the formation of this company, Señor Antonio Graña sold to the latter the estate "La Esperanza" together with all materials, tools, fixtures, etc., and the irrigation works already completed, for the amount of Lp. 230,587. But as there were the following liens encumbering the "La Esperanza estate: Bond issue of the Italian Bank__ Promissory notes in favor of the Italian Bank_. the Government assumed liability for the payment of the above, for account of the company, and issued the supreme decree of February 5, 1927, to that effect. 5. The difference of Lp. 30,587.0.00 represents the capital contributed by Signor Antonio Graña. 6. That portion of the debt assumed by the Government and consisting of the notes amounting to Lp. 64,109.6.11 and Lp. 15,890.3.89, in favor of the Italian Bank and International Bank of Peru, respectively, was paid off by the government as follows: (Source: Typewritten manuscript from the Ministry of Finance, specially prepared for the commission of financial advisers.). 3. Republic of Peru consolidated 1 per cent loan of 1889, S/.26,606,450. Laws authorizing loan: June 12, 1889, and October 31, 1889. Amount issued: Law of June 12, 1889, fixed the amount of this loan at Lp. 2,660,645, which, in accordance with law No. 2713 of February 6, 1918, are convertible at holder's option into cedulas of the consolidated 7 per cent internal debt of 1918 at 14 per cent of their nominal value. Amortization: There is no amortization service. Bonds of this issue are redeemed by exchange for cedulas of the consolidated 7 per cent internal debt of 1918, as authorized by law No. 2713. Dates of interest payments: March 31, June 30, September 30, and December 31. (Source: Balance y Cuenta General de la República, 1929, Ministry of Finance, pp. 263-4.) 4. Republic of Peru redeemable debt of 1898, S/.46,981,250.00. Law authorizing loan: December 17, 1898. Amount issued: Lp. 4,698,125.0.00. Amortization: Quarterly offers tendered by holders, with a yearly amount of Lp. 25,000.0.00 set aside for that purpose. Service on the loan: Through the office of deposits and consignment. (Source: Balance y Cuenta General de la República, 1929, Ministry of Finance, p. 264.) 5. Republic of Peru 7 per cent cedulas of the consolidated internal debt of 1918, S/.34,559,700. Laws authorizing loan: No. 2713 of February 6, 1918; No. 2736 of April 20, 918; No. 4075 of May 1, 1920; No. 4117 of May 11, 1920; No. 4230 of May 14, 1921; and No. 4922 of February 6, 1924.1 Amount issued: Lp. 3,455,970. Amortization: Semiannual drawings at par on May 1 and November 1, of each year. Commission: Office of deposits and consignments receives one-half per cent on the service of these cedulas. Dates of interest payments: March 31, June 30, September 30, and December 31, by the office of deposits and consignments. Security Net proceeds of alcohol tax. Service on the loan: Effected through the office of deposits and consignments. (Cource: Balance y Cuenta General de la República, 1929, Ministry of Finance, p. 264.) 6. Huacho 8 per cent, sanitation loan of 1923, S/.300,000.00. Contract: Executed June 26, 1923, with Carlos Ortiz de Zevallos and the office of deposits and consignments. Law authorizing loan: No. 4645 of April 4, 1923. Amount issued: Lp. 30,000 in bearer bonds of Lp. 100 denominations. Amortization: Semiannual, at par, after paying interest. Commission: One-half per cent. Dates of interest payments: March 31, June 30, September 30, and December 31. Date of maturity: Redeemable on any date, subject to 15 days' notice and payment of interest up to date of redemption. Security Proceeds of land and industrial taxes of Chancay and additional tax on exportation of cotton and sugar through the port of Huacho. Laws No. 2879 of November 27, 1918, and No. 4110 of May 11, 1920. Service on the loan: Taken care of by office of deposit and consignments. (Source: Balance y Cuenta General de la República, 1929, Ministry of Finance, pp. 264-265.) 7. Republic of Peru internal 8 per cent postal loan, 1924-1944, S/. 1,000,000.00. Laws authorizing loan: No. 4107 of May 11, 1920; and decree of June 25, 1924. Amount issued: Lp. 100,000.0.00 in bonds of Lp. 100 denominations. Price paid Government: Ninety per cent. Amortization: Lp. 5,000.0.00 per annum, applied semiannually to retire bonds at par. Commission: One-half of 1 per cent on the amount of the service for the office of deposits and consignments. Dates of interest payments: March 31, June 30, September 30, and December 31 of each year. 1 The date of the above-mentioned law, No. 4230, shown as May 14, 1921, in the Balance y Cuenta General de la República, is actually, Mar. 14, 1921. Security: Two per cent on parcel post goods and post office stores' rents. Service on the loan: Effected by the office of deposits and consignments. (Source: Balance y Cuenta General de la República, 1929, Ministry of Finance, p. 265.) 8. Collection Department of Office of Deposits and Consignments Loan, 10 per cent, 1927, S/. 3,000,000. Contract: Of March 31, 1927, approved by supreme resolution. Law authorizing loan: No. 5746, of March 14, 1927. Amount issued: Lp. 298,600 of the total authorized amount of Lp. 300,000 in denominations of Lp. 500, Lp. 100, and Lp. 50.. Price paid Government: One hundred per cent. Amortization: No special fixed amortizations are provided for. Amortiza tions are effected by drawings at par when the Government has funds available for that purpose, three days after receiving said sums. amortization to date. Commission: None. There has been no Dates of interest payments: March 31, June 30, September 30, and December 31. Date of maturity: No fixed date. Security: No specific security is provided for amortizations. As regards the service of interest on this loan, the office of deposits and consignments assumes liability for same with the proceeds of revenues collected for the Government, exclusively covering said service with the 8 per cent interest the Government is to pay for the Lp. 300,000 deposit, and the balance with part of the commission the office of deposits and consignments is entitled to for the collection of such revenues. Service on the loan: Lp. 30,000 yearly for interest, or 10 per cent. (Sources: (a) Note from manager of office of deposits and consignments, dated February 23, 1931; (b) booklet issued by office of deposits and consign |