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Wellington Independent, Volume XXVI, Issue XXVI, 26 July 1871, Page 2

The Lords of the Treasury have agreed to arrangements proposed by the Hon. Mr Yogel in regard to the guaranteed million loan of a character most favorable to the colony, and likely to ha>e a most beneficial effect on its credit in the London market. By the Imperial Act of 1870 the colony is limited to £200,000 worth of debentures a year, the whole million to be issued in five years. It has been arranged that these may be accumulated, and only operated on at the pleasure of the colony, so that if it chooses it may allow the several instalments of the whole million to lie untouched at the Bank of England without incurring any liability for interest, and provide for its annual wants from the proceeds of unguaranteed loans, or from any other source, provided only that in some way or other it spends annually £200,000 on public works and other objects provided for by the Guarantee Act. The advantage in a financial point of view of this arrangement can hardly be over-rated in giving the colony a commanding position in dealing for its unguaranteed loans, and in many other ways. That the Government of New Zealand should always have a reserve fund of from £200,000 to £1,000,000 of debentures guaranteed by the Imperial Government cannot fail to secure it very favorable terms in the money market.