SIR J.VOGEL'S ARRANGEMENT WITH THE BANK OF ENGLAND.

Wanganui Herald, Volume x, Issue 2699, 7 February 1876, Page 3

SIR J. VOGEL'S ARRANGEMENT WITH THE BANK OF ENGLAND.

■ ♦■ Sir Julius Yogel has concluded an arrangement with the Bank of England which will have a beneficial effect on Now Zealand securities. The Melbourne Argus gives the following explanation of the arrangement which was briefly conveyed to u,s by telegram : — " The Bank of Eru>": p»' has agreed to inscribe New Zealand Hun-lc, whether in the shape of fresh loans, or in rue conversion of outstanding debentures into inscribed stock. The stock is to be placed on the same footing as Consols, or Metropolitan Board of Works stock — that is to say, any person having' inscribed stock may at his pleasure receive certificates payable to the bearer instead of the stock, and these certificates can again at any time be changed into inscribed stock. The Bank, as stated, is to convert outstanding debentures, which it it desired to convert, and in the case of new loans the Bank is to receive the deposits and issue the scrip certificates till the full amount is paid up; the Bank is to grant certificates to bearor to re-inscribo when desired, and to pay interest half-yearly or quarterly. The charg-e to be made bj the bank is, we believe, to be at the rate per annum of £600 per million, or Is 2d, per cent for all the services enumerated. When the labor and responsibilities of 'incription and of creating- bonds to bearer are taken into account, the charge must be considered singularly, low. ' This arrangement will give the result so often desired, of substituting registered stock for debentures. .For. . speculative sales debentures are most convenient, but for permanent investment, "and especially for'th'e investment of trust funds, inscribed stock has, in, every, way the advantage. This Imperial. Government have consented, to 'introduce . a . bill to authorise a composition of. the stamp duties on the same terms as those provided for the" stock of the Metropolitan Board of Works, so that the stock will become transferable or exchangeable for ceitificates to bearer, and 'again' exchangeable in- inscribed stock without fees or charge. Although, of course Sir. Julius has only acted for New Zealand, the Imperial Government, are disposed to make the bill applicable to all the- other colonies, and there is no doubt that the Bank in agreeing to the terms, had it in consideration , that the whole of the colonies would sooner orla.place their loans on the same footing. Of -course, "the agreement depends for effect upon the New Zealand Legislature giving the necessary authority by legislation. Many of our readers are aware that for years part great exertions Have been made to obtain the requisite authority to enable trustees to invest trust funds in colonial securities, a's they are permitted to do in Metropolitan Board of Works stock, Indian securities, etc. The character colonial loans will enjoy when managed by the Bank of England is likely to hasten the desired result of permitting their employment for the investment of trust funds." -' '