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Otago Daily Times, Issue 526, 27 August 1863, Page 5

i * '; CORRESPONDENCE BETWEEN HIS I HONOR THE SUPERINTENDENT il OF OTAGO, AND THE MANAGER I . OF THE UNION BANK OF AUB--a TRALTA, RELATIVE TO THE * GOVERNMENT ACCOUNT WITH ! THAT BANK.

t Superintendent's .Office, 3 Duneilin, 18th April, 1863. s Sir.—lv consequence of the dissolution of the ? Provinchl Council, and the consequent dismissal J from office of the Executive C june I, anl the Proviii- , . ial Treasurer, it becomes necessury that I should I propose some temporary arrangement by means cf - which the. necessary funds for carrying out the J Government may be procured, until, by the election ot a new Provincial Council I eau surround myself t with a responsible Executive. t I f'.nd that tbe Government ac-ount is now overr drawn with you to the amount ot LtU,7dO ; and that s aa no land sales can, with a prudent regard to public l interest be permitted to bj eftected before the next ; meeting of the Provincial Council, I may find it ne- , cessary to increase tbat liability to a considerable r. extent, I have the honor to request that you will be ) good enough to inform me if, until the .ime I have • referred to, you are willing oa the-part of the Union ! Bank, to make such adyauces as the Government may ' require; audj if so, upon wbat term* and couditims. ; In the abs :iice of an Executive Council, and a Pro- ' 7l!r Cia, l I rTf aSIU; c!'\ I FOP 3^ that the sub-T^asurer.' i (Mr Walter. Day) should sign cheques, under the • style of the "Noting Treasurer;' anl that such ; cheques should be countersigned by the Piyyiucial i Auditor; the warrants for tli3 various payments 3 . being in ail cases previously signed by myself. "'■ ; I understand that debentures to a considerable ex- ; tent are still available, these, perhaps, you could still i advance upon to th-nr approximate value at the rate of interest your Bank is at present charging ttie Government on its own drafts, and dispose oAhem in Lon-loa or other markets oa terms which I will nropose to you.- - It will, of course, be nece3sary on the fir«fc m-etine of a new Provincial C-unci! that I should apply to that body for an Act of indemnity "under which your 13auk would receive protection for iis ad van.c.* I have, &c, kc] (Signed) John Hyde Harris, .... ~.-,--'■_: Superintendent. Alfred Jackson, Esq, Manager of the Union jJank of Australia. Union Bank of Australia, Dunedin, April 21st, 1863. His Honor John Hyde Harris, Esq., Superintendent. Sir,—[ have the honor to acknowledge receipt, this day, of your letter of 18th instant, having reference to tlie Government account with the Bank, advances required by the Government, and the negotiation of tiebenlures. I take note of the arrangement made for operating upon the Bank account until a Treasurer can be ap- ' pointed^, and at your request, coupled with the promise of indemnity, I shall have the pleasure in ." acting -thereupon. ' With respect to'the advance required by the Government at the present time, I not object to i the account bsing overdrawn to LIO.OOO, in addition to the amount named by you—provided ; that in.the course of one. mouth, or as early as possi- , ble, debentures representing say L 30,000 be placed l in the hands of the Bank for negociation, the pvor ceeds to go towards payment of the overdraft. The s rate of interest to that extent would hi the same as i that, now charged. i The minimum price of the bonds put into our hands migbt be fixed by the Government, but I would - stipulate that in case the figures named could not bd > realised, ..the. Government or its agents in Britain [ should, after receiving due advice to that effect, leave [ the Bank free to'dispose of them as it best could, in ■ order to cover the overdraft. > Iv case the bonds are negociatsd in London, our [ charge for placing the money in Dunedin, with . all expenses covered, would be 1 percent, it negociated in ■ Melbourne, no charge would be male bet yond that for advertising. I have the honor to .be, Sir, Your most obedient servant, ; - (Signed) A y Jackson, \ .»;'"_ Manager.-.'.