3 Adelaide place King Wm Street, London 26th February 1864 via Marseilles My dear Sir, I cannot let the mail leave without giving you a few private particulars about the sale of the provincial Debentures of Otago and Canterbury which are being privately by the Banks of N. Z. and Union of Australia. They are selling them at par but as their is accrued interest from the lst of January last it makes it equal to a discount of one per cent. I have heard also that the Bank of N. Z. are so anxious to place the Otago securities that they offered to forego their Commission to a Broker if he obtained a purchaser for a considerable amount. Whereas I have seen a party who purchased £1300 of the Canterbury Bonds for payment on the lst April next at par so that the interest which will be due up to that date is equal to 1 1/2% so that the Government will not realize more than 98 1/2. It is quite a change but the market is very sensitive at present and the resolution of the Committee of the Stock Exchange to exclude from their list provincial securities prevents many buyers from investing in them. The money market however is getting easier The Bank of England reduced its rate of Discount yesterday to 6%. It is quite possible that it may in a short time now come down to 5% but few expect or think it will be lower for some time to come. Notwithstanding this tightness in the money market the value of wool keeps up. The next sales are fixed for the for the 3rd proxo a mu larger quantity will be offered than usual but the consumption in the manufacturing districts continues large so that one is inclined to think that prices will be full as high at the approaching sales. I enclose a copy of the report that will be presented at the meeting of the Intercolonial Company next month. It may interest you as it referes to the Panama Service. It is becoming stronger here. I am anxious to hear how Mr. Wards arrangements is received in the Colony. I have heard one or two say that the Government will ignore it. For the credit of the Colony, I trust it will not do so. I have not observed that any progress has been made with your local Steam Company. Pray do not go and give such high prices for your Boats as the Wellington Company gave for the Rangatira, if report is correct it was about £3 or £4000 more than the cost a very high price for a 50 Horsepower Vessel. I amgetting one built and will be able to give you information, if required, when finished. You will observe that the New Zealand Examiner inserted the accounts of the province you were good enough to send me and begging you will excuse these hurried remarks I am my dear Sir, Yours faithfully, John Morrison His Honor, Donald McLean Esqr. NAPIER.