Natal Government Railways. Draft Law to Raise a Loan for the Construction and Equipment of Certain Railways [n.d.]; held at the National Archives, CO 879/7/19.

This chapter discusses the draft law to raise a loan for the construction and equipment of Natal Government railways. Debentures were bearer securities, the ownership of which was not recorded. They could therefore be sold without reference to the issuing house or payment of stamp duty. Although popular with the city, they were disliked by the public, as they were liable to theft or misappropriation, and, to obtain dividends, coupons attached to the certificate had to be sent to the issuing house. On issue, each debenture was offered for a set price that was above or below the ‘par’ price at which it would eventually be repaid. The Crown Agents generally set below-par prices, as trustees were averse to purchasing stock at a considerable premium and they were prohibited by law from buying above par securities if they managed trusts with less than fifteen years to run.