THE TRUNK RAILWAY LOAN

Auckland Star, Volume XVIII, Issue 256, 31 October 1887, Page 5

THE TRUNK RAILWAY LOAN

HOW THE LATE GOVERNMENT

AVOIDED FLOATING IT.

(BY TELEGRAPH. —SPECIAL REPORTER.)

Wellington, this day. Some time ago a statement was made on the authority of the late Treasurer that arrangements had been made to place sufficient money to the credit of the colony in London as to obviate the necessity for placing the North Island Trunk Railway loan in the market this year. lam now in a position to explain how the money was obtained. It appears that it amounted to the sum of six hundred thousand and was obtained from the Bank of New Zealand, application having in the first instance been made to the Bank of England but the terms offered were such that the credit of the colony would have been seriously injured by its acceptance. .',.<.' The matter was provisionally arranged about the middle of September between the Colonial Treasurer and the Bank Inspector, subject to ratification by the Board of Directors in Auckland, This was communicated to Sir J. Vogel on September 24th, two days before the general election. The advance is made under the terms of the contract under which the Bank of New Zealand has the Government account, although the amount is nearly to its full extent in excess of the sum which the Treasury was entitled to require the Bank to supply.

The advance was made in two sums of £300,000 each, one being in London and the other in the colony. Both are repayable in March.

In regard to the advance in the colony, the contract rate is 6 per cent., but the bank on this occasion only charges £5 13s Id per cent. The London money had to be remitted by cable, and the authorised rate of exchange in such cases is 2_ per cent., but in this instance only 2 per cent, has been charged.

The meeting of the shareholders of the Arch Hill Brick and Tile Company which was to have been held to-day lapsed for want of a quorumi