THE NORTH ISLAND LOAN.

Evening Star, Issue 7356, 31 October 1887, Page 2

THE NORTH ISLAND LOAN.

[Prom Oub Pabliamentaby Reporteb.l

WELLINGTON, Octobeb 31

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, so as to obviate the necessity for placing the North Island Trunk Railway, loan in the market this year. I am now in a position to explain how the money was obtained. It appears that it amounted to : the sum of LfIOO.OOO, and , waa. 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 its credit .i would be injured' by its acceptance, of them. The matter, provisionally arranged about the middle of: September byj the Cokmial, Treasury and the bank's inspector, subject to ratification by the Board iof Directors in Auckland.! .This was communicated to.Sir J. Vogel on September 24, two dayaiefore the general eleci tion. The advance is made under .the terms of ,thfti Contract under which'the Bank of New Zealand .have the Government account; although the amount'is nearly to its full extent in excess of the sum which the Treasury is entitled to require the Bank ioaupply. Theadvancewasmadje in twosumsof L 300,000 each; one being in London andthe other in the' Colony. Both are repayable in March next. In regard to the advance in the Colony, the contract rate is 6 per cent, but the-Bank' oh: this occasion .only' charge LS 13s 4d per cent;, The.London money had to be remitted by and the authorised raja of. -exchange >to auch cases la«2J per cent., bnt in. therbther only 2 percent. bM been charged. ; vr ~ . . > s'-nm/K*. >A,- li'i'-:..ti>.)i''. ■- , ■'-' •■<-<.- e *.* cißlewtoroYauth: (inquiringly^: '"QuHfc sixteen, miss?" St Louis Mto(btahilig);t : jee>iS? fc/ioU ft