THE CONSOLIDATION OF LOANS.

Lyttelton Times, Volume XXIX, Issue 2344, 27 June 1868, Page 3

THE CONSOLIDATION OF LOANS.

Mr Fitzherbert has launched his scheme for the consolidation of the public debts of New Zealand, on the London market, in the following terms : At present there exists in the market a great variety of New Zealand bonds of different denominations, owing to which they bare suffered depreciation. The object contemplated by the Act is to remedy this state of things so far as may be found practicable, and to consolidate all the existing debts of New Zealand into one uniform security. And for the future the system under which the provinces of New Zealand have heretofore been enabled to borrow money upon security of their provincial revenues without the direct sanction of the General Assembly has been put an end to. The whole existing external debts of New Zealand, direct and indirect, are as follows, viz. : GENERAL GOVERNMENT LOANS. Imperial Guaranteed Loan of 1857 £500,000 Loan of 1861, 6 per cent, redeemable July, 1891 150,000 WAR LOAN, Of 1863. Ist Instalment, 5 per cent,redeemablelsth July, 1914 £1,000,000 2nd Instalment, 4 per cent, guaranteed by Imperial Government, redeemable Ist Nov., 1915 500.000 3rd Instalment, 6 per cent,redeemablelsth March, 1891 ... 500,000 4th Instalment, 6 per cent, redeemahlel sth June, 1891 100,000 sth Instalment, 6 per cent, redeemablelsth June, 1891 250,000 Cth Instalment, 6 per cent, redeemablelsth June, 1891 144,600 7th Instalment, 6 per cent, redeemahlel sth December, 1891 ... 505,400 Total £3,650,000 PROVINCIAL GOVERNMENT LOANS. Brought forward, ... £3,650,000 Total By what Go- Amount Rates of vernrnent. Authorised. Interest. Auckland £500,000 6 per cent Taranaki 25,000 8 „ Do 50,000 7 „ Wellington 50,000 8 „ Do 25,000 8 „ Do 50,000 8 „ Do 30,000 10 „ Hawke's Bay 60,000 6 „ Nelson 29,000 8 & 10 „ Do 5,000 Do 20,000 8 „ Canterbury 30,000 8 „ Do 300,000 6 „ Do 500,000 6 „ Otago 35,000 10 „ Do 50,000 8 „ Do 500,000 6 „ Do 50,000 8 „ Do 50,000 8 „ £2,359,000 Less 400,000 Not issued 1,959,000 Total £5,609,000 In addition to the foregoing amount, it is proposed to raise—for payments under " the Southland Provincial Debt Act, 1865," and the " Santhland Provincial Debt Act, 1866." £380,000 For liabilities of the provinces of Otago and Southland, under " the Surplus Revenue Adjustment Act, 1867." 32,000 For further liability of the province of Southland 42,000 For telegraph extension lighthouses, colo ni al defence, redemption of Taranaki debentures and Marine survey 260,000 For taking up the total unraised and unissued debentures, authorised by various Acts 400,000 £1,114,000

Power has been taken to convert the whole of the Loans of the Colony and different Provinces of New Zealand, as above specified:— but the portion of the Colonial Debt which has been guaranteed by the Imperial Government, amounting to £1,000,000 and the 7, 8, and 10 per cent Provincial Loans amounting to ... ... _ £499,000 are not included in any present proposal; they must be dealt with, if at all, separately. It is proposed to issue a 5 per cent Lonn with 1 per cent Sinking Fund, to be invested in animal drawings, and the conduct of the entire operation has been placed in the hands of Messrs Julyan and Sargeaunt, the Crown Agents for the Colonies. It is highly satisfactory to be able to state that the Imperial Claims which have been for along time outstanding against New Zealand, on account of the late war in that Colony, have been withdrawn.

To the above, Mr Fitzherbert has appended a series of tables shewing the exports, imports, and revenue—consolidated and territorial—of the colony from 1853 to 1867 inclusive. The following are the advertisements in which Messrs Julyan and Sargeaunt explain their proposals to capitalists : In order to remedy the frequent complaints which have been made by holders of the Provincial Government debentures, in consequence of the difficulty of negotiating 1 these securities in the London market at their full value, and to remove the inconvenience arising from the want of uniformity in the securities of the General Government now in circulation, it has been determined, if possible, to convert the whole of the public loanß of the colony, General and Provincial, into one loan, to be called " The New Zealand Consolidated Loan."

In furtherance of these objects, it is proposed by the Government of New Zealand, under the powers granted by the Act above cited, to issue in exchange for the various securities now in circulation, new debentures of uniform character, charged on the consolidated revenue of New Zealand. These new debentures will bear interest at the rate of 5 per cent, per annum, payable quarterly, and the principal will be repaid at par by a one per cent, cumulative sinking fund, applied by annual drawings to the extinction of the debt. By this process the whole amount will be paid off in about 36 years,

The Crown Agents for the Colonies, acting on behalf of the Government of New Zealand are now prepared to receive applications from the holders of the various debentures herein referred to on the following terras, viz:— For every £IOO General Government 5 per cents, payable in 18U, holders may receive £9910s New 5 per cents, as above described. For every £IOO General Government 6 per cents, payable in 1891, the holders may receive £ll3 10s in the New 5 Per Cents.

For every £IOO six per cents, of the Provincial Governments of Auckland, Canterbury, Otago, and Hawke's Bay, payable from 1879 to 1914, the holders may receive £lO9 in the New 5 Per Cents.

Interest on the New 5 per Cents, will commence from the 15th April, 1868, and all interest accrued prior to that date on such of the old debentures as may be converted, will be paid to the respective holders in addition to the foregoing rates of exchange. The bonds wiil be made to represent sums of £IOOO, £SOO, £2OO, and £IOO respectively, and fractions of the latter amount which may be unavoidable in the conversion, will be adjusted either by the issue of one bond, more or less, and by the payment of the difference in money. The annual drawings will take place in ths month of March, commencing in 1869, and will be conducted in the presence of the crown ngents for the colonies, of any debenture holders who may be pleased to attend, and of a notary public. |The debentures drawn will be paid off at par on the 15th April following, together with the interest due thereon.

The days on which such drawings will take place, and the numbers and values of the debentures drawn will be duly notified by advertisement in the London Gazette and The Times. Applications for conversion on the foregoing terms will be received by the undersigned at any time not later than the 15th June next, after which they reserve to themselves the right of offering less favourable rates, or of altogether closing the operation. Scrip certificates will at first be issued in exchange for the bonds withdrawn, and these will afterwards be replaced by debentures of the new issue. Loan, for £1,114,000. To be issued in 5 per cent, debentures, identical in all respects with those described in the foregoing advertisement, The Crown agents for the colonies, acting on behalf of the Government of New Zealand, hereby invite subscriptions for the above loan. Tlio price of issue will be £97 in money for every £IOO in debentures, payable at the Bank of England, as follows : £lO on allotment "] £'2s on Ist June | £25 on 15th June )» Per £IOO debenture £25 on Ist July j on 15th July J The interest will be made payable by coupon at the offices of the Crown agents for the colonies, on the 15th July, 15th October, 15th January, and 15th April of each year, and the principal by annual drawings at the same place. Scrip Certificates, bearing interest at 5 per cent from the 15th April, 1868, will he issued to subscribers on allotment, and exchanged for Debenture Bonds on payment of the final instalment. With the exception of about £300,000 to be applied to Telegraph Extension, Light Houses, and Colonial defence, the money is required to take up existing but unissued Debentures authorised by Provincial Acts still in force, and to 'meet certain Provincial liabilities assumed by the General Government.