The Terms of the River Plate Settlement were as Follows:—

"That for the outstanding debt at the 31st March, 1884, your Company was to receive £20,000 in 9 per cent, debentures, and the balance of £8,440 was to be paid for in 9 per cent, preference shares, £5 each, at the price of £4."

One of the stipulations in the settlement was that the River Plate Company should, on demand by the Consolidated, pay off £500 of the above debentures every month.

This option has not been exercised for the present, as we think it would be most prejudicial to your interests in the River Plate, that that Company should have to find a sum equal to £6,000 per annum, in addition to the interest on the 9 per cent, debentures, and the 9 per cent, cumulative dividend on the preferred shares, and further we do not think it advisable that the 9 per cent, debentures should be paid off, as they form a satisfactory investment.