3½-PER-CENT. CONVERSION OPERATIONS (FURTHER CORRESPONDENCE RELATING TO THE). [In continuation of B.-18, 1895.]

Appendix to the Journals of the House of Representatives, 1896 Session I, B-18

8.-18

1896.

NEW ZEALAND.

3½-PER-CENT. CONVERSION OPERATIONS (FURTHER CORRESPONDENCE RELATING TO THE). [In continuation of B.-18, 1895.]

Presented to both Houses of the General Assembly by command of His Excellency.

No. 1.

The Agent-Geneeal to the Colonial Teeasuebe. (No. 549.) Westminster Chambers, 13, Victoria Street, London, S.W., 17th May, 1895. Lyttelton and Christchurch Railway Debentures. The Union Bank of Australia, where these debentures are domiciled, represents that only £15,200 matured on the Ist July last, and that, therefore, the amount of those still outstanding is £27,800, not £27,700, as given in the Table No. 3 attached to the Financial Statement of 1894. When the bank's representative called at this office it was suggested that he should carefully examine the coupons which were in the hands of the Crown Agents, but, after doing this, the bank reports that they are all in order. I transmit copy of the bank's letter with reference to the matter. I have, &c, The Hon. the Colonial Treasurer, Wellington. W. B. Peeceval.

Enclosure in No. 1. The Union Bank of Australia, 1, Bank Buiiaings, Lothbury, E.C., Sir,— 2nd Ma y> 1895 - With reference to our call of to-aay, the coupons with the Crown Agents appear to be all in oraer, ana from the annexea statement which we have taken from our books bonas amounting to £15,200 only maturea last year, ana the one for £100 which has not been paia apparently matures in 1896, hence the discrepancy. The Crown Agents state that they can ao nothing in the matter, ana I shall therefore be glad if you will write out to the colony for an explanation. Yours, &c, E. Moore, Secretary. Bonds Nos. 1001/1400, due 1/7/94 .. .. .. .. .. 400 Less converted .. .. .. .. .. .. .. 248 Which were paid off. 152 Bonds Nos. 2301/500, due 1/7/96 .. .. .. .. .. 200 Less converted .. .. .. .. .. .. 14 186 Bonas Nos. 2501/700, aue 1/7/97 .. .. .. .. .. 200 108 92 Total outstanaing .. .. .. .. .. .. 278 Coupons on above have regularly been paia by us from time to time. I—B. 18.

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No. 2

The Colonial Teeasueee to the Agent-Geneeal. (Treasury No. 17.) Sir,— The Treasury, Wellington, 9th July, 1895. I have the honour to acknowledge the receipt of your memorandum, No. 549, of the 17th ultimo, enclosing copy of a letter from the Union Bank of Australia pointing out an apparent error in the amount of Lyttelton and Christchurch Eailway Loan debentures shown in Table No. 3, attached to the Financial Statement, 1894, as outstanding, and to inform you that the bank is probably right in its figures, which it has taken pains to verify. The error must have occurred in the information supplied to the Treasury when the loan was taken over from the Province of Canterbury, and an alteration of the table for this year will be made, the only correction required being in the due date, the total amount of the loan outstanding, £27,800, being correctly stated. I have, &c, J. G. Ward, The Agent-General for New Zealand, London. Colonial Treasurer.

No. 3

The Colonial Treasurer to the Agent-General. (Treasury No. 16.) Sir,— The Treasury, Wellington, 9th July, 1895. The Secretary to the Treasury informs me that he is unable to make the necessary entries to clear some of the loan conversions from his books, owing to the absence of narrations of the debentures so converted. I shall be glad, therefore, if you will furnish, as soon as possible, complete cancellation narrations wholly or partially affecting the following converted loans—viz., " The District Eailways Purchasing Act, 1885," £12,000; " The Cheviot Estate Payment Act, 1893," £250,000. I have, &c, - J. G. Ward, The Agent-General for New Zealand, London. Colonial Treasurer.

No. 4.

The Colonial Teeasueee to the Agent-General. (Treasury No. 18). The Treasury, Wellington, 9th July, 1895. Sir, — Conversion 4-per-cent. "Consolidated Stock Act, 1884," Debentures. In your letter, No. 1487, dated the 29th October, 1892,* you remark that the sum of £53,400 4-per-cent. Consolidated Stock Act debentures remained outstanding. As the debentures do not yet appear to have been converted, I shall be glad of any information you can give me as to why they have not been sent in, as it is desirable that the transaction should be closed as soon as possible. I have, &c, J. G. Ward, The Agent-General for New Zealand. Colonial Treasurer.

No. 5.

The Agent-General to the Colonial Teeasueee. (No. 701.) Westminster Chambers, 13, Victoria Street, London, S.W. Sir,— 28th June, 1895. Eeferring to my letter, No. 349, of the 3rd April last.t I beg to report further on the conversion operations. 5-per-cent. Consolidated Debentures (Annual Drawings). Since the 23rd March, £7,900 of these debentures have been converted into £8,374 Si-per-cent, stock, the terms at which they were converted being £106 stock for every £100 in debentures with all coupons subsequent to that of the 15th April attached. Including the £35,000 debentures advised as converted in my letter of the 3rd April, the total amount of these debentures converted since the Ist January last is £42,900, represented now by £45,474 stock. 5-per-cents of the Loan of 1863. Since the Ist January last, £24,900 of these debentures have been converted into £28,417 3- 1--per-cent. stock—namely, £6,200 into £7,099 stock (being at the rate of £114|- stock for every £100 in debentures), and £18,700 into £21,318 stock (being at the rate of £114 stock for every £100 in debentures), under the terms specified in the prospectus (copy herewith) of the 25th January last. At my instance the Trustees of the sinking fund of the loan of 1863 have, in consideration of the conversion of these £24,900 debentures, decided to release £9,100 of the fund, and this amount will be paid into the Public Account as soon as sufficient amount of stock belonging to the fund has been realised. The amount still outstanding of these debentures is £275,200. I attach copy of minutes which have passed with the Trustees of the sinking fund.

• Vide No. 32, 8.-21, 1893. t Vide No. 14, 8.-18, 1895.

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District Railway Debentures. In addition to the £12,000 converted last year, £1,000 of these debentures have been converted into 3J-per-cent. stock on the following terms —namely, £100 stock bearing interest from the Ist July next for every £100 in debentures, with all undue coupons subsequent to that of October next attached. Inscription of Stock for Conversion Purposes. The following amounts of 3-J-per-cent. stock have been inscribed since the Ist January last: —■ £50,000 on account of the Cheviot Estate debentures. £45,474 on account of the 5-per-cent. Consol. debentures. £106 on account of the Otago Loan debentures. £7,099 on account of the 5-per-cent. loan of 1863 debentures. £7,000 on account of the 5-per-cent. Consol. debentures and expenses. The above amounts were inscribed cum dividend payable the Ist July, 1895. Also, £21,318 on account of 5-per-cent. loan of 1863 debentures, inscribed ex dividend of the Ist July, 1895. I have, &c, The Hon. the Colonial Treasurer, Wellington. W. B. Perceval.

Enclosure 1 in No. 5. Westminster Chambers, 13, Victoria Street, London, S.W., 21st June, 1895. Minute for the Trustees of the Sinking Fund of the Loan of 1863. I beg to state, for the information of the Trustees, with the view of their releasing such further portion of the sinking fund as they may aeem advisable, that within the present year £24,900 5-per-cent. debentures (redeemable in 1914) of the loan of 1863 have been converted into New Zealand Consolidated Stock, leaving £275,200 of these debentures still outstanding. W. B. Perceval.

Enclosure 2 in No. 5. Westminster Chambers, 13, Victoria Street, S.W., 22nd June, 1895. Memorandum. The Trustees of the sinking fund of the loan of 1863 having been informed by the Agent-General that £24,900 of the 5-per-cent. debentures of the loan of 1863 (redeemable 1914) have been converted into New Zealand 3J-per-cent. Consolidated Stock, a proportionate amount of sinking fund of that loan can now be released. At the time of the last conversion of these debentures such amount was released as left sufficient amount in the fund to redeem the then outstanding debentures at par in 1914. The Trustees therefore propose that a further amount, proportioned to that of the converted debentures, be now released; and for the purpose of providing for a sufficient margin the 4-per-cent. stock (now quoted at 111-112) will be taken at par value. The sinking fund at present consists of the following, namely :— £ s. d. 4-per-cent. New Zealand Consolidated Stock .. .. .. .. .. 108,386 14 10 Cash on deposit .. .. .. .. .. .. .. .. 2,095 9 6

£110,482 4 4 Of this amount (£110,482 4s. 4d.), the proportionate amount to be releasea would be, in round numbers, £9,100. The Trustees therefore propose to sell such amount of the 4-per-cent. stock as will, with the cash on deposit, make up the sum of £9,100, and that such amount, when realised, be paid over to the Agent-General, receiving the same on behalf of the New Zealand Government. W. B. Perceval. P. G. Julyan. Walter Kennaway.

Enclosure 3 in No. 5. New Zealand Public Debt. In continuation of the conversion of the under-mentioned aebentures of the New Zealand Government loans, notice of which was given by the Bank of England in prospectus dated the 14th February, 1894, holders thereof are informed that such debentures can be converted into New Zealand Government 3J-per-cent. Consolidated Stock (inscribable at the Bank of England) on the terms following, that is to say : — 5-per cent. Consols (Annual Drawings and Quarterly Coupons). For every £100 in Consols debentures, £106 of 3£-per-cent. Consolidated Stock. The coupon due 15th April next must be detached from the debentures, and will be paid at the due date. All coupons subsequent to that due 15th April must remain attached to the debenture when deposited for conversion. The interest on the 3J-per-cent. stock will date from the Ist January, 1895, the first half-year's dividend being payable on the Ist July, 1895.' Debentures for conversion on the above-mentioned terms must be deposited at the Bank of England not later than 15th March next. The annual drawing for the redemption at par of the Consols debentures will take place in March, and debentures deposited for conversion on or before the 15th March will not be affected by the drawing. All debentures drawn for redemption not brought in for conversion under the above terms will be paid off at par (£100) on and after the 15th April, 1895. 5-per-cents of the Loan of 1863, redeemable 1914. For every £100 in debentures of this loan, £114 of 3J-per-cent. Consolidated Stock inscribable at the Bank of England on or after the 3rd June next. The coupon for the half-year's interest due on the 15th July next must be detached, and will be paid at the due date. Interest on the 3J-per-cent. stock will date from the Ist July, 1895, and the first half-year's dividend will be paid on the Ist January, 1896. Debentures to be converted under the above terms must be deposited at the Bank of England not later than the 31st May next, when the offer given as above to holders will expire. Debentures of this loan can also be converted into 3J-per-cent. stock for immediate inscription on the following terms—namely : For every £100 in debentures, with all undue coupons attached, £114 10s. of 3J-per-cent. consolidated stock, bearing interest from the Ist January last. This offer will expire on the 31st March. Debentures still outstanding of the under-mentioned loans will be accepted for conversion into 3J-per-cent. Consolidated Stock on terms which can be ascertained on application to the Agent-General:— (i.) Lyttelton and Christchurch Railway Loan, redeemable 1896 and 1897. (ii.) Auckland Loan, redeemable 1896. (iii.) Nelson Loan, redeemable 1896, (iv.) Otago Loan, redeemable 1898. (v.) Canterbury Loan, redeemable 1915 and 1916,

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The Consolidated Stock herein mentioned will in every case rank pari passu with the New Zealand 3£-per-eent. Consolidated Stock already inscribed at the Bank of England, with dividends payable half-yearly on Ist January and Ist July, and redeemable at par Ist January, 1940. Before presenting debentures of any of the above-mentioned loans at the Bank of England for conversion, it will be necessary to furnish the Agent-General with particulars of the same, in order that the bank may be authorised to receive them. W. B. Peeoeval, New Zealand Government Office, 13, Victoria Street, London, S,W., Agent-General. 25th January, 1895.

No. 6.

The Agent-General to the Colonial Treasurer. (No. 730.) Westminster Chambers, 13, Victoria Street, London, S.W., 28th June, 1895. Stock and Conversion Accounts. I beg to transmit herewith the under-mentioned statements of accounts. 1. Statement showing the financial result of the various transactions which have passed between the Stock Agents and the Public Account up to 31st March, 1895, with respect to the conversion of the public debt. 2. Statement showing—(l) Amount of 3J-per-cent. stock on hand on 30th September, 1894; (2) amount of stock sold; (3) amount of the proceeds of sales; and (4) amount of stock in hand on the 31st March, 1895. The Hon. the Colonial Treasurer. W. B. Perceval.

Enclosure 1 in No. 6. Statement showing—(l) Amount of 3£-per-cent. Stock on Hand on the 30th September, 1894; (2) Amount of Stock sola; (3) Amount of Proceeas of Sales; and (4) Amount of Stock in Hand on the 31st March, 1895. Proceeds of Amount of Sale. Stock. 1894. Dr. £ s. d. 1895. Cr. £ s. d. £ s. d. Sept. 30. Balance of stock in hand as fol- Feb. 28. Amount of 3£-per-lows :— cent, stock sold Amount of stock (held by Agentheld by the Agent-General General and and Audit Officer .. .. 62,177 17 8 Audit Officer).. 50,249 7 6 50,000 0 0 Amount of 3|-per-cent. stock Mar. 14. Ditto .. .. 5,055 12 6 5,000 0 0 held by the Bank of England 3,839 5 6 „ 28. „ .. .. 45,449 4 6 45,000 0 0 1895. April 10. ... .. 0 10 March 8. Amount of 3J-per-cent. stock inscribed in the names of the 100,754 5 6 100,000 0 0 Agent - General and Audit . Officer .. .. .. 50,000 0 0 Mar. 31. By balance of 3J-per-cent. stockAmount held by Agent-General and Audit Officer .. .. 16,017 3 2 £116,017 3 2 £116,017 3 2 W. B. Perceval, Agent-General. Examined—C. Wray Palliser, Audit Officer. Walter Kennaway, Secretary.

Enclosure 2 in No. 6. Statement showing the Financial Result of the Various Transactions which have passed between the Stock Agents and the Public Account up to the 31st March, 1895, with respect to the Conversion of the Public Debt. 1894. Dr. £ s. d. 1894. Cr. £ s. d. Sept. 30. Balance in favour of the Oct. 1. Amount refunded by brokers Public Account .. .. 26,239 4 7 on 15th May, 1893, omitted Redemption of Cheviot Es- 1895. in previous account .. 0 11 6 tate debentures .. .. 50,000 0 0 Feb. 28. Paid to Public Account .. 50,249 7 6 Interest on £3,852 3J-per- March 14. Ditto .. .. .. 5,055 12 6 cent, stock from Ist July * 28. .. .. .. 45,449 4 6 to 15th July, 1894 (5-per-cent. Consol. bonds conversion), overlap of interest 5 10 9 Interest on £4,876 3J-per-cent. stock from Ist July to 15th October, 1894 (5-per-cent. Consol. bonds conversion), overlap of interest .. .. .. 50 0 7 Interest on £90,885 3J-per-cent. stock from Ist July to 15th July, 1894 (conversion of 5-per-cent. bonds of 1863 loan), overlap of interest .. .. .. 130 14 5 Interest on £12,480 3J-per-cent. stock from Ist July to Ist October, 1894 (conversion of distriot railway 4-per-cent. bonds), overlap 1895. of interest .. .. 108 18 0 March 31. Balance in favour of Stock Agents.. .. .. 24,220 7 8 £100,754 16_0 £100,754 16 0 W. P. Perceval, Agent-General and Stock Agent. Examined—C. Wray Palliser, Audit Officer. Walter Kennaway, Secretary.

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No. 7.

The Agent-Geneeal to the Colonial Treasurer. (No. 947.) Westminster Chambers, 13, Victoria Street, London, S.W., 16th August, 1895. Conversion 5-per-cent. Debentures into 4-per-cent. Consolidated Stock. Eeperring to the Honourable Minister's letter of the 9th July last (No. 18),* I beg to transmit statement (in continuation of that dated the 30th September, 1892, transmitted with my letter, No. 1487, of the 29th October, 1892) t showing that the conversion of the £4,214,100 5-per-cent. debentures into 4-per-cent. Consolidated Stock (inscribed at the Bank of England) has been completed. I regret that this statement was not forwarded at an earlier date. Walter Kennaway, The Hon. the Colonial Treasurer. For the Agent-General.

Enclosure in No. 7.

Statement showing the Amount of the £4,214,100 5-per-cent. Debentures sent in for Conversion into 4-per-cent. Stock at 107, and the Amount of Stamp Duty paid thereon (in continuation of Statement of 30th September, 1892).

No. 8. The Agent-General to the Colonial Treasurer. Westminster Chambers, 13, Victoria Street, London, S.W., (No. 948.) 22nd August, 1895. Cancelled Debentures. By the mail-box shipped this week by the steamship " Eimutaka " (parcel No. 89 in mail-box No. 134) I forward the under-mentioned cancelled debentures: £50,000 guaranteed 4-per-cent. debentures of the loan of 1856 ; £15,200 Lyttelton and Christchurch Eailway debentures; £250,000 Cheviot Estate debentures. I attach lists giving the numbers and denominations of these debentures. They would have been forwarded to the Treasury at an earlier date, but there was a possibility, as regards the guaranteed and Cheviot Estate debentures, of their being required to be produced in connection with the quotation of the stock into which they had been converted; and, as regards the Lyttelton and Christchurch Eailway debentures, they were retained here pending the settlement of the question raised by the Union Bank of Australia as regards the amount still outstanding. Walter Kennaway, The Hon. the Colonial Treasurer. For the Agent-General.

Enclosure 1 in No. 8. Guaranteed Debentures of 1856. Fifty debentures of £1,000 each. Series F. 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 Fifty debentures of £1,000 each = £50,000 * Vide No. 4, supra. t Vide No. 32, 8.-21, 1893.

Dates. Debentures. Stock. Stamp Duty. 1892. ipril 1 to September 30 )ctober 1 to October 31 November 1 to November 30 .. December 1 to December 31 1893. £ 4,160,700 22,100 8,100 2,700 £ 4,451,949 23,647 8,667 2,889 £ s. d. 27,917 2 6 148 5 0 54 10 0 18 2 6 anuary 1 to January 31 rebruary 1 to February 28 Jarch Ipril f une fuly 1894. 4,100 13,500 200 800 200 1,000 4,387 14,445 214 856 214 1,070 27 11 3 90 6 3 17 6 5 8 9 17 6 6 13 9 "anuary itarch 200 500 214 535 17 6 3 7 6 4,214,100 4,509,087 28,275 10 0

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Enclosure 2 in No. 8. Lyttelton and Christchurch Railway Debentures One hundred and fifty-two £100 debentures numbered as follows: — 1001 1002 1003 1004 1005 1006 1007 1036 1037 1038 1039 1040 1109 1110 1111 1112 1113 1114 1115 1122 1123 1124 1125 1139 1140 1201 1202 1203 1204 1205 1206 1207 1208 1209 1210 1211 1212 1213 1214 1215 1216 1217 1218 1219 1220 1221 1222 1223 1224 1225 1226 1227 1228 1229 1230 1231 1232 1233 1234 1235 1236 1237 1238 1239 1240 1241 1242 1243 1244 1245 1246 1247 1248 1249 1250 1251 1252 1253 1254 1255 1266 1267 1268 1269 1270 1271 1272 1273 1274 1275 1276 1277 1278 1279 1280 1281 1282 1283 1284 1285 1286 1287 1288 1289 1290 1298 1299 1300 1301 1302 1303 1304 1305 1306 1307 1308 1309 1310 1311 1312 1313 1314 1331 1332 1333 1334 1335 1336 1337 1338 1339 1340 1341 1342 1343 1344 1345 1346 1347 1348 1349 1350 1351 1352 1353 1354 1355 1356 1357 1358 1359 1360 One hundred and fifty-two debentures at £100 each = £15,200

Enclosure 3 in No. 8. £250,000 Cheviot Estate Debentures. Twenty debentures of £10,000 each. 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 Five debentures of £5,000 each. 66 67 68 69 70 One debenture of £25,000. 71 Summary. £ One debenture of £25,000 .. = 25,000 Twenty debentures of £10,000 = 200,000 Five debentures of £5,000 .. - 25,000 £250,000

No. 9.

The Agent-General to the Colonial Treasurer. Westminster Chambers, 13, Victoria Street, London, S.W., 23rd August, 1895. (No. 949.) District Railway Debentures. Eeperring to the honourable Minister's letter (T. 95/886) No. 16, of the 9th July last,* I herewith transmit schedule of the numbers and denominations, as furnished by the Bank of England, of the £12,000 debentures issued under " The District Eailways Purchasing Act, 1885," which have been converted into stock on the terms given in my letter, No. 947, of the 9th August, 1894. I have requested the Bank of England to forward these debentures to this office for transmission to the Treasury. Walter Kennaway, The Hon. the Colonial Treasurer. For the Agent-General.

Enclosure in No. 9. " District Railways Purchasing Act, 1885 ": £4-per-cent. Debentures. Twenty-four debentures of £500 each, £12,000. 391 392 393 394 ' 395 396 397 398 437 438 439 440 441 442 443 444 445 446 447 450 451 454 455 456

No. 10.

The Agent-General to the Colonial Treasurer. Westminster Chambers, 13, Victoria Street, London, S.W., (No. 1096.) , 2nd October, 1895. Cancelled 5-per-cent. Debentures. I beg to state that I have received from the Bank of England fifteen packages containing the undermentioned cancelled debentures. 5-per-cent. debentures convertible into 4-per-cent. stock on the 15th April, 1892 :— £ 6,666 of £100 ... ... ... ... ... ... 666,600 3,025 of £200 ... ... ... ... ... ... 605,000 3,015 of £500 ... ... ... ... ... ... 1,507,500 1,435 of £1,000 ... ... ... ... ... ... 1,435,000 £4,214,100 * Vide No. 3, supra.

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5-per-cent. debentures convertible into 4-per-cent. stock on the 15th January, 1892 : — 244 of £100 ... ... ... ... ... ... ... 2,400 81 of £200 16,200 50 of £500 ... ... ... ... ... ... ... 25,000 £43,600 These packages of debentures are being transmitted to the Treasury by the steamship " lonic," leaving London on the 3rd instant. I enclose bill of lading for the case which contains them. The Hon. the Colonial Treasurer. W. B. Perceval.

No. 11.

(No. 24.) The Colonial Treasurer to the Agent-General. Sir, — The Treasury, Wellington, 31st October, 1895. With reference to the debentures for £18,600 of the Lyttelton and Christchurch Eailway Loan, 1860, falling due Ist January next, I have the honour to inform you that I have decided to pay off the debentures rather than convert them, and I therefore transmit herewith a bank order, No. xxxiii., and copy of requisition No. 111, for payment of the amount. A like amount of accrued sinking fund will be released by the Commissioners of the Public Debts Sinking Fund here. I have, &c, J. G. Ward, The Agent-General for New Zealand, London. Colonial Treasurer.

No 12.

The Agent-General to the Colonial Treasurer. Westminster Chambers, 13, Victoria Street, London, S.W., (No. 1183.) 10th October, 1895. Provincial Loans. The under-mentioned provincial loans, which mature in 1896, are included amongst those which, under the deed poll of the 12th March, 1891, can be redeemed by the sale of 3-J-per-cent. Consolidated Stock. I shall, however, await the honourable Minister's instructions before moving the Stock Agents to take the necessary steps for inscribing the amount of stock required. Due Date. £18,600 Lyttelton and Christchurch Eailway Loan ... Ist January, 1896 £15,000 Nelson Loan ... ... ... ... ... 23rd March, 1896 £16,800 Auckland Loan ... ... ... ... Ist June, 1896 The Hon. the Colonial Treasurer. W. B. Perceval.

No. 13.

The Colonial Treasurer to the Agent-General. (No. 25.) Sir,— The Treasury, Wellington, 26th November, 1895. I have the honour to acknowledge the receipt of your letter of the 10th October last (No. 1183), drawing my attention to the amounts of the provincial loans maturing next year. With regard to the Lyttelton and Christchurch Eailway Loan, you will have received my letter of the 31st ultimo (No. 24), enclosing a bank order for £18,600 in repayment of the debentures falling due Ist January next. As to the £15,000 of the Nelson Loan, due 23rd March next, I have decided to redeem it here by conversion into colonial stock. The £16,800 of the Auckland Loan, due Ist June next, it will be advantageous to convert, as there are accrued sinking funds which, with further accretions, will at due date of the loan amount to about £31,800, so that over £15,000 will be available for public-works expenditure after paying off the outstanding debentures issued, against the sinking fund. I have therefore to request you to instruct the Stock Agents to inscribe and sell sufficient 3J-per-cent. stock to redeem these debentures. . I have, &c, E. J. Seddon, The Agent-General for New Zealand, London. For the Colonial Treasurer.

No. 14.

The Colonial Treasurer to the Agent-General. (No. 28.) Sir,— The Treasury, Wellington, 27th November, 1895. Eeferring to the Bank of New Zealand and Banking Act of last session, and to sections 4 to 7 and 35 thereof, I have now to advise you that the directors of the Bank of New Zealand have issued twenty preferred-share certificates for £25,000 each, or £500,000 in all, each certificate being for 7,500 shares—in all, £150,000. These certificates will be handed to you in exchange for Government debentures or stock quotable on the London Stock Exchange.

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The Act does not apparently provide for the direct inscription of new loan stock. I have therefore, under the provisions of section 35, created and issued a short-dated debenture for £500,000, which (with a narration) I forward herewith. In terms of subsection (5) of section 35, an Order in Council will be duly executed declaring this debenture to be convertible into stock created or issued under " The New Zealand Consolidated Stock Act, 1877," and " The Consolidated Stock Act, 1884." The debenture has not been cancelled, as I expect the Bank of England will prefer that that should be done after the conversion has taken place. Upon receipt of the certificates of " preferred " shares to be handed you by the bank, and upon being informed that the Order in Council has been signed, you will proceed to have the debenture converted into £500,000 of 3J-per-cent. stock inscribed in the name of the Bank of New Zealand to such order as the bank in London may desire. As it may be necessary for you to act at the earliest possible moment, I shall probably have to advise you by cable of the action taken and to be taken, and I trust you will be able to make arrangements with the Bank of England to carry out the required inscription without having to wait for the documents themselves, as, of course, you will readily realise how essential it is for the bank to secure the best possible price for the Government stock, and the risk there is of lower quotations should any European difficulty occur before the documents could reach England. I have, &c, John McKenzie, The Agent-General for New Zealand, London. For Colonial Treasurer.

No. 15.

The Agent-General to the Colonial Treasurer. (No. 1255.) Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 22nd October, 1895. Eeferring to my letter, No. 701, of the 28th June last,* I beg to report further on the conversion operations : — 5-per-cent. Consol. Debentures (Annual Drawings). Since the 3rd June last (the date at which the stock is inscribed ex dividend) £8,100 of these debentures have been converted into £8,586 3J-per-cent. stock, the terms at which they were converted being £106 stock for every £100 in debentures, with all coupons subsequent to that of the 15th July attached. The total amount of these debentures converted since the Ist January last is £51,000, represented now by £54,060 of 3i-per-cent. stock. The outstanding debentures in the hands of the public amount to £630,000. 5-per-cents of the Loan of 1863. No further debentures of this loan have been converted since the 3rd June last. The amount of outstanding debentures remains, therefore, at £275,200. On the 4th July the Sinking Fund Trustees paid to the credit of the Public Account the sum of £2,096 19s. 5d., and on the 11th July the further sum of £7,003 os. 7d., being a total of £9,100, on account of released sinking fund. The sinking fund at present consists of £103,503 2s. 9d. New Zealand 4-per-cent. stock. Provincial Loans. Since the 3rd June £2,400 6-per-cent. debentures, issued under " The Otago Loan Ordinance, 1862," have been brought in for conversion. The terms on which these debentures were converted into 3-J-per-cent. stock were £106 stock for every £100 in debentures, with all undue coupons attached. No further conversions have been effected as regards the other provincial loans or the district railway debentures. No further 3i-per-cent. stock for conversion purposes has been inscribed. The amount of stock now standing in the joint names of the Agent-General and Audit Officer is £17 3s. 2d. I have, &c, The Hon. the Colonial Treasurer, Wellington. W. B. Perceval.

No. 16.

The Agent-General to the Colonial Treasurer. Westminster Chambers, 13, Victoria Street, London, S.W., (No. 1274.) 2nd November, 1895. Stock and Conversion Accounts. I beg to transmit herewith the under-mentioned statements of accounts :— 1. Statement showing the financial result of the various transactions which have passed between the Stock Agents and the Public Account up to the 30th September, 1895, with respect to the conversion of the public debt. 2. Statement showing—(l) Amount of 3£-per-cent. stock on hand on the Ist April, 1895; (2) amount of stock sold; (3) amount of proceeds of sales; and (4) amount of stock in hand on the 30th September, 1895. The Hon. the Colonial Treasurer. W. B. Perceval.

* Vide No. 5, supra.

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Enclosure 1 in No. 16. Statement showing the Financial Result of the Various Transactions which have passed between the Stock Agents and the Public Account up to the 30th September, 1895, with respect to the Conversion of the Public Debt. 1895. Dr. £ s. d. 1895. Cr. £ s. d. April 16. Commissioners'order on Pub- April 1. Balance in favour of Stock lie Account 1,000 0 0 Agents 24,220 7 8 » 16. Commissioners'order on Pub- „ 10. Paid to Public Account .. 23,344 6 6 lie Account to provide pay- „ 10. Paid to Public Account .. 0 10 ment of £44,800 drawn 5- Sept. 30. Balance in favour of Publio per-cent. Consol. bonds .. 44,656 0 0 Account .. .. .. 25 8 4 Sept. 16. Commissioners' order on Public Account 500 0 0 Interest on £50,000 3J-per-cent. stock from Ist January to 18th April, 1895 (Cheviot Estate bonds conversion), overlap of interest 517 16 2 Interest on, say, £90,000 3J-per-cent. stock from Ist January to 15th April, 1895 (conversion and redemption of 5-per-cent. Consol. bonds), overlap of interest .. .. 906 3 2 Interest on £7,099 3J-per-cent. stock from Ist January to 15th January, 1895 (conversion of 5-per-cent. bonds of 1863), overlap of interest 10 4 2 £47,590 3 6 £47,590 3 6 W. B. Perceval, for the Stock Agents. Examined.—C. Wray Palliser, Audit Officer. Walter Kennaway, Secretary.

Enclosure 2 in No 16. Statement showing—(l) Amount of 3J-per-cent. Stock on Hand on the Ist April, 1895 ; (2) Amount of Stock sold ; (3) Amount of Proceeds of Sales; and (4) Amount of Stock in Hand on the 30th September, 1895. Proceeds of Amount of Sale. Stock. 1895. Dr. £ s. d. 1895. Cr. £ s. d. £ s. d. April 1. Balance of 3J-per-cent. stock in April 10. Amount of 3J-per-hand held by the Agent-Gene- cent, stock sold ral and Audit Officer .. .. 16,017 3 2 (held by Agent- " 4. Amount of 3s-per-cent. stock in- General and scribed to meet conversion ex- Audit Officer) .. 23,344 6 6 23,000 0 0 penses, &c. .. .. .. 7,000 0 0 ■ Sept. 30. By balance of 3J-per-cent. stock— Amount held by Agent-General and Audit Officer .. .. 17 3 2 £23,017 3 2 £23,017 3 2 W. B. Perceval, Agent-General. Examined—C. Wray Palliser, Audit Officer. Walter Kennaway, Secretary.

No. 17.

(No. 31.) The Colonial Treasurer to the Agent-General. Sir, — The Treasury, Wellington, 11th December, 1895. Eeferring to my letter of the 27th ultimo, No. 28, I have now the honour to enclose herewith the Order in Council mentioned therein declaring the debentures for £500,000 issued under " The Bank of New Zealand and Banking Act, 1895," to be convertible into stock created or issued under " The New Zealand Consolidated Stock Act, 1877," and " The Consolidated Stock Act, 1884." I have, &c, The Agent-General for New Zealand, London. J. G. Ward, Colonial Treasurer.

Enclosure in No. 17. Glasgow, Governor. Order in Council. At the Government House, at Wellington, this third day of December, one thousand eight hundred and ninety-five. Present: His Excellency the Governor in Council. Whereas by section 35 of " The Bank of New Zealand and Banking Act, 1895," it is (among other things) enacted that, with reference to debentures authorised to be issued by the Colonial Treasurer under the said Act, the Governo r in Council* may, from time to time, declare all or any of the debentures to be convertible into stock as therein mentioned : And whereas debentures to the amount of £500,000 under and for the purposes of the said Act have been issued by the Colonial Treasurer, and it is expedient that such debentures should be declared to be convertible into stock &a hereinafter mentioned : Now, therefore, His Excellency the Governor of the Colony of New Zealand, in pursuance and exercise of the power and authority vested in him by " The Bank of New Zealand and Banking Act, 1895," and acting by and with the advice and consent of the Executive Council of the said colony, doth hereby declare all the debentures for £500,000 so issued as aforesaid to be convertible into stock created or issued under "The New Zealand Consolidated Stock Act, 1877," and " The Consolidated Stock Act, 1884." J. F. Andrews, Acting-Clerk of the Executive Council.

2—B. 18.

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No. 18.

The Agent-General to the Colonial Treasurer. Westminster Chambers, 13, Victoria Street, London, S.W., (No. 1361.) 14th November, 1895. Memorandum to the Hon. the Colonial Treasurer re District Railway Debentures. Eepereing to my memorandum, No. 949, of the 23rd August last, I beg to state that in mail-box No. 140, shipped by the steamship " Euahine," a parcel is enclosed containing twenty-six £500 District Eailway cancelled debentures, as per attached list. £12,000 of these debentures were converted into stock last year, and £1,000 this year, as already advised. The Hon. the Colonial Treasurer. W. B. Perceval.

Enclosure in No. 18. List of New Zealand District Railway 4-per-cent. Debentures, converted into New Zealand 3J-per-cent. Stock. With all coupons subsequent to that of October, 1894, attached:— Nos. 391/398, Bat £500 = £4,000 „ 437/447, 11 „ = 5,500 „ 450/451, 2 „ = 1,000 „ 454/456, 3 „ = 1,500 With all coupons subsequent to that of October, 1895, attached : — Nos. 452 and 457, 2 at £500 = £1,000

No. 19.

The Agent-General to the Colonial Treasurer. (Cablegram.) (Eeceived sth January, 1896.) Debentures sent in your letter of the 27th November received. Will comply with instructions as soon as Order in Council is ready. Colonial Treasurer, Wellington. London, 4th.

No. 20.

The Agent-General to the Colonial Teeasueee. (Cablegram.) (Eeceived 22nd January, 1896.) " Bank of New Zealand and Banking Act, 1895 " : Mackrell and Co. raise point that £500,000 debenture issued for the purpose of exchange, not for the purpose of raising money, therefore the question is whether convertible under "The New Zealand Consolidated Stock Act, 1877." Colonial Treasurer, Wellington. London, 21st.

No. 21.

The Colonial Teeasueer to the Agent-General. (Cablegram.) Wellington, 23rd January, 1896. " Bank of New Zealand and Banking Act, 1895 " : Point raised Mackrell and Co. —Crown Law Officers' opinion is section 35, subsection (5), sufficient authorise conversion, but telegram may not disclose all grounds for doubt raised by Mackrell and Co. The Agent-General, London.

No. 22.

The Agent-General to the Colonial Treasurer. (Cablegram.) (Eeceived 28th January, 1896.) Steps must be taken immediately for the purpose of creating £500,000 inscribed stock, so as to convert debentures. Instruct whether you wish me [to] have additional stock created for expenses of conversion or whether Bank of New Zealand pays. Colonial Treasurer, Wellington. London, 27th.

No. 23.

The Colonial Treasurer to the Agent-General. (Cablegram.) Wellington, 28th January, 1896. With reference to telegram conversion £500,000 debentures, see my instructions letter 27th November. £500,000 stock to be inscribed in name of Bank of New Zealand, who will thereupon effect sale and pay expenses. The Agent-General, London.

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No. 24.

The Agent-General to the Colonial Treasurer. Westminster Chambers, 13, Victoria street, London, S.W., 10th December, 1895. Sinking Fund of the Loan of 1863. I beg to state that the Trustees of the sinking fund of the loan of 1863 have paid into the Public Account at the Bank of New Zealand the sum of £2,001 Is. 3d. on account of released sinking fund. I attach copy of memoranda relating to the matter. The Hon. the Colonial Treasurer. W. B. Perceval.

Enclosure 1 in No. 24. , (Memorandum.) 13, Victoria Street, London, S.W., 2nd December, 1895. The Trustees of the sinking fund of the loan of 1863 (redeemable 1914). The attached memorandum from Mr. Palliser, the Audit Officer, shows that the present amount of the sinking fund of the loan of 1863 (which is redeemable Ist July, 1914), consisting of £103,503 2s. 9d., New Zealand 4-per-cent. Stock, will, with the annual contribution to the fund, be (computing on a 3J-per-cent. basis) more than sufficient to provide the amount required in 1914 to pay off tho outstanding bonds. Under these circumstances, I desire to submit for the consideration of the Trustees that the amount of the dividend now payable on the above-mentioned 4-per-cent. stock be paid into the Public Account as released sinking fund. W. B. Perceval.

Enclosure 2 in No. 24. The Agent-General. Five-per-cents op 1863 (redeemable 1914.) There is now outstanding, in respect of the above loan, £275,200, on which the annual sinking fund contribution is £2,752, which annual contribution invested at, say, 3J per cent., will, in July, 1914 (nineteen years), yield £70,803 (omitting, in all cases, shillings and pence.) I understand that there is at present accumulated funds invested in New Zealand 4-per-cent. Stock to the amount of £103,503, which sum, calculated on a 4-per-cent. basis, will, in 1914, yield £217,977, making a total in 1914 of £288,780. This amount being in excess of the amount to be redeemed (namely, £275,200) by £13,580, it will only be necessary to hold invested at 4 per cent, a sum of £97,330. Accordingly, the cash at present invested is in excess of the requirements by £6,173. 28th November, 1895. C. F. Wray Palliser.

No. 25.

The Agent-General to the Premier. (Cablegram.) (Eeceived, 30th January, 1896.) Bank of New Zealand refuse to pay stamp duty and expenditure on (? expenses of) conversion. My opinion is this (is) payable by New Zealand Government, but you can arrange in the colony with Bank of New Zealand. Bank of England instructed to-day (to) inscribe £500,000 3-J-per-cent. stock (in) Bank of New Zealand's name. London, 29th.

No. 26.

The Agent-General to the Colonial Treasurer. (Cablegram.) (Eeceived, 31st January, 1896.) Conversion £500,000 debentures completed. Colonial Treasurer, Wellington. London, 30th.

No. 27.

The Colonial Treasurer to the Agent-General. (Cablegram.) Wellington, Ist February, 1896. With reference to telegram, 29th, Bank of New Zealand, state instructions have been telegraphed, London office, pay cost inscription, £500,000. The Agent-General, London.

No. 28.

The Colonial Treasurer to Sir F. D. Bell. (No. 747.) Dear Sir Francis, — The Treasury, Wellington, 7th February, 1896. Mr. Heyw r ood has mentioned to me that you were good enough to say that, in the event of the Government desiring it, you were prepared to go on with the history of the conversion operations which you so ably conducted while occupying the position of Stock Agent and AgentGeneral for the colony. I assure you that it would give the Premier and myself great satisfaction if you could spare the time to complete such a record of the transactions as you contemplate, and such a history would, I have little doubt, clearly show the advantage the colony has derived from the various conversion operations which have been effected. I shall be happy to afford assistance by placing such printed finance papers at your disposal as you may desire. I have, &c, J. G. Ward, Sir F. D. Bell, Shag Valley, Dunedin. Colonial Treasurer.

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No. 29.

i\o. The Agent-General to the Colonial Treasurer. (No. 2.) Westminster Chambers, 13, Victoria Street, London, S.W., Sir, — 2nd January, 1896. I beg to acknowledge the receipt of your letter (T. 95/1736) No. 28 of the 27th November last, transmitting a short-dated debenture for £500,000, issued under the provisions of " The Bank of New Zealand Banking Act, 1895." I Jiave, &c, The Hon. the Colonial Treasurer, Wellington. W. B. Perceval.

No. 30.

The "Colonial Treasurer to the Agent-General. (No. 13.) Sir,— The Treasury, Wellington, 20th February, 1896. Eeferring to your memorandum, No. 1,274, dated the 2nd November last, enclosing statement of accounts, brought down to the 30th September last, of the transactions between the Stock Agents and the Public Account, and of the amount of 3J-per-cent. stock in hand, I have the honour to inform you that the same have been examined and reconciled with the Treasury Accounts, with the following results : — The sums of £55 12s. 6d. (out of £5,055 12s. 6d.), £449 4s. 6d (out of £45,449 4s. 6d.), and Is., paid into the Public Account on the 14th and 28th March and 10th April last respectively, represent a total premium of £504 18s. arising from the conversion and sale of £50,000 Cheviot Estate debentures stock belonging to the Post Office, and were therefore excluded from our accounts. I think the Stock Agents should reverse these entries. £64 18s. lid., being dividend received Ist January, 1896, on £3,839 ss. 6d. 3J-per-cent. stock, is omitted from the statement, but should be included, I think, as on previous occasions. I shall make entries to support the credits for overlap of interest on the various parcels of stock sold, and then, with the omission and inclusion of the sums mentioned above, the overdrawn balance of £595 ss. 3d. will be arrived at, which would be the correct balance at the 30th September last in both the Stock Agent's and Treasury Accounts. I have, &c, J. G. Ward, The Agent-General for New Zealand, London. Colonial Treasurer.

No 31.

The Agent-General to the Colonial Treasurer. Westminster Chambers, 13, Victoria Street, London, S.W., (No. 115.) 15th January, 1896. Memorandum to the Hon. Colonial Treasurer re Lyttelton and Christchurch Railway Debentures. Eeferring to the Hon. Minister's letter (T. 95/1413), No. 24, of the 31st of October last, I beg to state that the £18,600 of the Lyttelton and Christchurch Eailway debentures, falling due on the Ist instant, were paid off through the Union Bank of Australia. The debentures in question have been cancelled and will be forwarded to the Treasury by an early opportunity. W. B. Perceval.

No 32.

The Agent-General to the Colonial Treasurer. (No. 140.) Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 20th January, 1896. Eeferring to my letter, No. 1255, of the 22nd October last, I beg to report further on the conversion operations: — 5-per-cent. Consol. Debentures (Annual Drawings.) Since the 22nd October last £4,900 of these debentures (with the January coupon attached thereto) have been converted into £5,145 stock (cum January dividend), and £3,800 (with the January coupon detached) into £3,990 stock (ex January dividend), being a total of £8,700 debentures converted into £9,135 3£-per-eent. stock; the terms at which the conversion was in both cases effected being £105 stock for every £100 in debentures. The total amount of these debentures converted since the Ist January, 1895, is £59,700, represented now by £63,195 of 3£-per-cent. stock, and, in addition to these, £44,800 drawn debentures were redeemed at par by the proceeds of the sale of 3|-per-cent. stock. The outstanding debentures now in the hands of the public amount to £621,300. 5-per-cents of the Loan of 1863. No further debentures of this loan have been converted since the 22nd October last. The outstanding debentures remain, therefore, at £275,200. On the 7th December last the Sinking Fund Trustees paid to the credit of the Public Account the sum of £2,001 Is. 3d. on account of released sinking fund. The sinking fund at present date consists of £103,503 2s. 9d. New Zealand 4-per-cent. Stock, and £1,376 cash, which will be invested in the purchase of further New Zealand 4-per-cent Stock.

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No further conversions have been effected as regards the provincial loans or the district railway debentures, and no further stock for conversion purposes has been inscribed. The amount of stock inscribed up to the present date is £5,460,588 10s., made up as follows, namely : — £ s. d. Amount on which interest was paid on Ist July, 1895 (as per my memorandum No. 729, of 28th June, 1895) ... 5,418,005 10 0 Converted into stock cum January, 1896, dividend, — £13,000 5-per-cent. Consol. debentures ... ... 13,731 0 0 £18,700 5-per-cent. debentures of 1863... ... ... 21,318 0 0 £2,400 6-per-cent. debentures Otago loan ... ... 2,544 0 0 £1,000 4-per-cent. district railway debentures ... ... 1,000 0 0 Amount on which interest was paid on Ist January, 1896 ... 5,456,598 10 0 Converted into stock ex January dividend, 1896, — £3,800 5-per-cent. Consol. debentures ... ... ... 3,990 0 0 £5,460,588 10 0 Additional 3J-per-cent. stock will shortly have to be inscribed and sold for the purpose of providing the funds required to pay off the drawn Consol. debentures in April next, and those of the Auckland loan on the Ist June. I am taking the preliminary steps for the conversion of the £500,000 debentures issued under the provisions of " The Bank of New Zealand and Banking Act, 1895," in anticipation of your advice that the Order in Council has been issued. I propose next week to issue a similar notice to that issued in January of last year, stating that the 5-per-cent. Consol. debentures, and those of the loan of 1863, and of the Provincial loans, can still be converted into 3|-per-cent. stock. I have, &c, The Hon. the Colonial Treasurer, Wellington. W. B. Perceval.

No. 33.

The Agent-General to the Colonial Treasurer. Westminster Chambers, 13, Victoria Street, London, S.W., (No. 117.) 21st January, 1896. Memorandum to the Hon. Colonial Treasurer re Province of Auckland Loan. Deferring to the honourable the Minister's (T. 95/1705), No. 28, of the 27th November last, I beg to state that I have ascertained that, while the principle of the outstanding portion of the Auckland loan of 1863 is made repayable in the body of the debentures on the Ist June of this year, the last coupon is made payable on the Ist October next, and is for a full half-year's interest. Under these circumstances, I assume that it will be right to pay off the principal at the date named in the debenture, leaving the coupon to be presented for payment on the Ist October. The Hon. the Colonial Treasurer. W. B. Perceval.

No. 34.

The Agent-General to the Colonial Treasurer. (No. 141.) Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 22nd January, 1896. Eeferring to your letter (T. 95/1736), No. 28, of the 27th November last, I beg to state that, while awaiting the receipt of your advice that the Order in Council had been issued, I placed myself in communication with Messrs. Mackrell and Co., with respect to the preparation of the necessary documents required for the issue of the stock, into which it was proposed that the £500,000 debenture should be converted; and, in considering the matter, Messrs. Mackrell have brought under my notice the question as to whether the provisions of " The Bank of New Zealand and Banking Act, 1895," with those of the New Zealand Consolidated Stock Acts, give sufficient authority to the Stock Agents to create the stock required. They point out that as the Consolidated Stock Act authorises the creation of stock for the purposes only of raising, by way of loan, any sum of money for the public service of the colony, or converting and redeeming existing loans, the £500,000 debenture, which it is proposed to convert into 3|-per-cent. stock, having been issued for the purpose of exchange for another security—not issued by the Government —and not for the purpose of raising money by way of loan, &c, cannot therefore be dealt with under the provisions of the Consolidated Stock Act. I thought it right to bring the point raised by Messrs. Mackrell and Co. under your notice, and I therefore sent you a cablegram, copy of which I herewith transmit. lam inclined to think, however, that the objection raised, even if tenable, is not likely to prove an insuperable barrier to the operation, as I do not think it likely that the Bank of England or the London Stock Exchange will challenge the issue on this ground. I am, &c, The Hon. the Colonial Treasurer, Wellington. W. B. Perceval. P.S.—Since writing the above I have received your letter, No. 31 (T. 95/1780) (vide No, 20, supra) of the 11th December, 1895, transmitting the Order in Council.

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No. 35.

The Agent-General to the Colonial Treasurer. (No. 121.) Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 20th January, 1896. We hereby transmit for your information copy of minute passed by us on the 14th instant, in which we record our appreciation of the services rendered to us by the secretary and staff of the Agent-General's Department in the work of the recent conversions of the public debt of the colony. We have, &c, W. B. Perceval, The Hon. the Premier, Wellington. For the Stock Agents.

Enclosure in No. 35. Westminster Chambers, 13, Victoria Street, London, S.W., 14th January, 1896. Minute by the Stock Agents. In minutes of previous years the Stock Agents have already referred in favourable terms to the manner in which the officers of the Agent-General's Department have carried out the detailed work involved in the various conversions of the New Zealand public debt. Since December, 1893, the work of conversion has been proceeded with continuously, resulting in close upon £800,000 of debentures of various issues having been converted into 3J-per-cent. stock. The arrangements which have had to be carried out with regard to these conversions have necessitated much careful attention as regards detail, even more so than in many of the previous conversions, and the extent of the work in connection therewith is well shown by reference to the office records. The Stock Agents think it also right to refer to the settlement arrived at last year, as regards the Conversion Accounts, as a matter which reflects much credit on the officers whose duty it was to deal with them. The Stock Agents have pleasure in again recording their satisfaction at the excellent manner in which the work has been performed, and, in recognition of the special services thus rendered, have decided to make the following payments by way of honorarium —namely, £150 to Mr. Kennaway, £50 to Mr. Palliser, £120 for distribution among the clerks engaged. } Stock Agents.

No. 36.

The Colonial Treasurer to the Agent-General. (No. 17.) Sir,— The Treasury, Wellington, 10th March, 1896. I have to thank you for your memorandum of 21st January last, No. 117, stating that while the principal of the Auckland loan is repayable on the Ist June next, the last coupon is not due till Ist October following. It is certainly very singular that the last coupon should have been made payable at a date later than that on which the principal was repayable ; but, in the circumstances, the contract as expressed on the bonds and on the coupons should be adhered to, and the sums ' should be paid upon the respective due dates. I have, &c, J. G. Ward, The Agent-General for New Zealand, London. Colonial Treasurer.

No. 37.

The Colonial Treasurer to the Agent-General. (No. 3.) Gentlemen, — The Treasury, Wellington, 12th March, 1896. I have to acknowledge the receipt of your letter, No. 121, dated the 20th January last, enclosing for the information of the Premier, a copy of a minute passed by you on the 14th idem, recording your appreciation of the services rendered by the secretary and staff of the AgentGeneral's Department in the work of the recent conversions of the public debt of the colony, and notifying that it had been decided to pay £320 by way of honorarium to the officers engaged in the work in recognition of their special services. While the Government cordially appreciate the very valuable nature of the services rendered by the officers engaged upon the conversion operations, it is right to inform you that payments by way of bonus have been steadily refused to be authorised by Ministers here, and as this payment has the appearance of being of an annual nature, it is as well to state that the Government think it is inadvisable that such extra remuneration should be made. I have, &c, J. G. Ward, The New Zealand Stock Agents, London. Colonial Treasurer.

No. 38.

The Agent-General to the Colonial Treasurer. Westminster Chambers, 13, Victoria Street, London, S. W., (No. 241.) 6th February, 1896. Memorandum to the Hon. Colonial Treasurer re Lyttelton and Christchurch Railway Debentures. In continuation of my memorandum, No. 115, of the 15th ultimo, I beg to state that the cancelled debentures of the Lyttelton and Christchurch Eailway Loan, 1860, as specified below, have been forwarded to the Hon. Minister's address in mail-box No. 146, per steamship " Euanehu " : Nos. 2311 to 2405, Nos. 2410 to 2500 (inclusive) =£18,600. W. B. Perceval,

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No. 39.

The Agent-Geneeal to the Colonial Treasurer. (No. 249.) Westminister Chambers, 13, Victoria Street, London, S. W., Sir,— 6th February, 1896. Eeferring to my letter, No. 141, of the 22nd January last, I beg to state that in accordance with the instructions contained in your letter (T. 95/1736), No. 28, of the 27th November last, the Stock Agents have, at my request on behalf of the Government, caused the £500,000 debenture to be converted into £500,000 3-J-per-eent Consolidated Stock, inscribed at the Bank of England in the name of the Bank of New Zealand; such stock being thus inscribed in exchange for twenty Bank of New Zealand preferred share certificates for £25,000 each, or £500,000 in all, which certificates have been delivered to me, and are now in the custody of the Audit Officer and myself, awaiting further instructions as to their disposal. I enclose copy of the correspondence. The certificates are numbered 1 to 20, each certificate (copy herewith) representing 7,500 shares of £3 6s. Bd. each. The Bank of New Zealand have paid into the Stock Agents' Account at the Bank of England the sum of £3,125 to meet the payment of stamp duty on the £500,000 3J-per-cent stock. Copies of the deed-poll and declaration will be forwarded by next mail. I have, &c, The Hon. Colonial Treasurer, Wellington. W. B. Perceval.

Enclosure 1 in No. 39. Dear Sirs,— 13, Victoria Sreet, S.W., 24th January, 1896. New Zealand Bank. —After my interview with your Mr. Maton, when he raised the question whether the debenture which is to be handed to the bank in exchange for the certificates can be deemed to be a loan convertible under " The New Zealand Consolidated Stock Act, 1877," I telegraphed to my Government informing the Treasurer of the point which had been raised. I send you a copy of the cable and the reply cable received this morning. The reply does not appear to me to be pertinent, as I presume it is not contended that section 35, subsection (5) extends the operation and increases the power of the Stock Agents under the Act of 1877. The Order in Council has also come to hand by mail, a copy of which is also enclosed. Provided, therefore, the point raised by Mr. Maton is not considered insuperable the deed-poll can now be proceeded with. It seems to me that the operation is not likely to be challenged; and, unless you deprecate such a course, I suggest that the matter be proceeded with. The Bank of New Zealand is anxious to be registered as holders of the stock at the earliest possible date. Yours, &c, Messrs. Mackrell and Co., 21, Cannon Street, E.C. W. B. Perceval.

Enclosure 2 in No. 39. Sir,— 13, Victoria Street, S.W., 24th January, 1896. Referring to my interview with you of a few days back, when you called upon me to discuss the completion of the exchange of £500,000 debentures for share certificates contemplated by the recent Act of the New Zealand Parliament and the subsequent conversion of the debenture into inscribed stock, I have now to inform you that the necessary Order in Council has come to hand, and I have instructed the solicitors to proceed at once with the preparation of the necessary deed, &c. Yours, &c, The Manager, Bank New Zealand, 1, Queen Victoria Street, E.C. W. B. Perceval.

Enclosure 3 in No. 39. Dear Sir, — Bank of New Zealand, London, 25th January, 1896. I have to thank you for your letter of the 24th instant, from which I note that the Order in Council required in connection with the exchange of £500,000 debenture stock for share certificates has come to hand, and that the matter is being proceeded with. I have, &c, C. G. Tegetmeier, Manager. Sir Westby B. Perceval, K.C.M.G., Westminster Chambers, 13, Victoria Street, S.W.

Enclosure 4 in No 39. Gentlemen, — 13, Victoria Street, 27th January, 1896. We beg to inform you that we have determined to create £500,000 of New Zealand 3J-per-cent. Consolidated Stock for the purpose of converting into stock, at par, the £500,000 debenture, narration of which is enclosed, such stock to rank pari passu with the New Zealand 3J-per-cent. Consolidated Stock already inscribed at the Bank of England. And we hereby request and authorise you to inscribe the said £500,000 3J-per-cent. stock in the name of the Bank of New Zealand, or in the names of such persons as may be named by that bank. To enable you to carry out the arrangements for the issue and inscription of the new stock, the necessary declaration to bring the stock under the provisions of " The Colonial Stock Act, 1877," will be lodged with the Inland Revenue Board. Arrangements will be made with the Commissioners of Inland Revenue for the payment of the composition for stamp duty, so as to enable the stock, after it shall have been inscribed in your books, to be transferred free of duty, and also to receive this duty from you under similar arrangements to those which have been made respecting previous issues of inscribed stock. On behalf of the New Zealand Government, we have to request that you will pay to the Commissioners the amount of the composition payable for stamp duty in respect of the stock as the same becomes inscribed in your books. We also, on behalf of the New Zealand Government, authorise you to issue to the holders of this further issue of inscribed stock, who may desire the same from time to time, stock certificates to bearer, in pursuance of the provisions of " The Colonial Stock Act, 1877." And we authorise and request that the same fee shall be charged for the issue of stock certificates as charged in like cases. And we further authorise you to transmit dividend warrants by post in the same manner and on the same conditions as the warrants for dividends on the Government funds are sent. We shall be obliged by your giving immediate effect to this operation, and we hereby undertake to lodge the formal deed-poll providing for the creation of said stock, and which is now in course of preparation, at the earliest date possible after it has been executed by us. We have, &c., P. G. Julyan, W. B. Perceval, The Governor and Company of the Bank of England. Stock Agents for the New Zealand Government.

Enclosure 5 in No. 39. Sir, — Bank of New Zealand, London, 30th January, 1896. I have to inform you that I have received intimation from the Bank of England that £500,000 New Zealand Stock (£3 10s. per cent.) has been this day inscribed in the name of the Bank of New Zealand, and in accordance with instructions from our head office, I herewith beg to hand you twenty certificates, each representing 7,500 preferred shares of £3 6s. Bd., numbered 1 to 150,000, in the capital of this bank, in favor of Her Majesty, issued under " The Bank of New Zealand and Banking Act, 1895." I have, &c, C. G. Teqetmeier, Manager. The Agent-General for New Zealand, Westminster Chambers, 13, Victoria Street, S.W.

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Enclosure 6 in No. 39. Sir,— 13, Victoria Street, S.W., 31st January, 1896. I am directed by the Agent-General to acknowledge the receipt of your letter of the 30th instant, enclosing twenty certificates, each representing 7,500 preferred shares of £3 6s. Bd., numbered 1 to 150,000, in the capital of your bank, in favour of Her Majesty, issued under " The Bank of New Zealand and Banking Act, 1895." I have, &c, The Manager, Bank of New Zealand, 1, Queen Victoria Street, E.C. Walter Kennaway.

Enclosure 7 in No. 39. Narration of Debenture issued under "The Bank of New Zealand and Banking Act, 1895." Interest payable Half-yearly, on 30th June and 31st December (Coupon attached.)

No. 40.

The Agent-General to the Colonial Treasurer. (No. 381.) Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 21st February, 1896. Eeferring to my letter, No. 249, of the 6th instant, I beg herewith to transmit —(1) deedpoll, dated the 24th January, 1896, creating £505,000 New Zealand Consolidated Stock at 3£ per cent.; (2) declaration (relating to the above) for' the Inland Eevenue Commissioners; (3) debenture (cancelled) No. 1, issued under " The Bank of New Zealand and Banking Act, 1895," for the sum of £500,000. The Stock Exchange Committee have granted a quotation to the £500,000 stock which has been inscribed under this creation. I have, &c, The Hon. the Colonial Treasurer, Wellington. W. B. Perceval.

Enclosure 1 in No. 40. Deed-poll. to all to whom these presents shall come ! We, Sir Penrose Goodchild Julyan, a Knight Commander of the Most Distinguished Order of Saint Michael and Saint George, and a Companion of the Most Honourable Order of the Bath, and Sir Westby Brook Perceval, a Knight Commander of the said Most Distinguished Order of Saint Michael and Saint George, the Agent-General for the Colony of New Zealand in the United Kingdom, send greeting : Whereas by an Act of the Legislature of New Zealand, intituled " The New Zealand Consolidated Stock Act, 1877 " (hereinafter sometimes referred to as " the New Zealand Stock Act"), it was, among other things, enacted that, for the purpose of raising any sum or sums of money under the authority of any Act that might be passed by the General Assembly of New Zealand in any future session of the said General Assembly authorising the Governor in Council to raise by way of loan any sum of money for the public service of the colony, it should be lawful for the Governor in Council to create capital stock, to be called "New Zealand Consolidated Stock," such stock to be issued in such amounts and manner, atjsuch prices and times, on such terms and subject to such conditions, with such dividends, and redeemable at par at such times and on such conditions, as the Governor in Council might before the creation thereof from time to time determine : And by the said Act it was further enacted that the Governor in Council might from time to time declare all or any of the New Zealand loans, whether existing in the form of stock or not, to be convertible into stock of such denominations with such conditions and with such dividends and redeemable at par at such times and on such conditions as he might before the creation thereof from time to time determine, and might authorise the creation and issue of such an amount of such stock in exchange for the securities held for such loans as might be necessary, and might authorise the creation and sale of any of such stock for the purpose of raising money for redeeming any outstanding stock or securities and of paying any expenses in the creation of stock and otherwise carrying out the provisions of the said Act on such conditions as he might determine, and any conversion so authorised might be effected either by arrangement with the holders of the existing securities, or by purchase thereof out of moneys raised by a sale of the new stock, or partly in one way and partly in the other : And by the said Act it was further enacted that all stock and the dividends thereon, and all charges and expenses incurred in carrying out the provisions of the said Act, should be a charge on and be paid out of the Consolidated Fund : And by the said Act it was further enacted that the Governor in Council might from time to time appoint three or more persons in England to be Agents for the purposes of the said Act, and might empower such Agents or any three or more of them to exercise all or any of the powers by the said Act exercisable by the Governor in Council: And whereas by another Act of the said Legislature, intituled "The New Zealand Consolidated Stock Act 1877 Amendment Act, 1881" (hereinafter referred to as " the New Zealand Stock Amendment Act"), it was enacted that, notwithstanding anything in " The New Zealand Consolidated Stock Act, 1877 " contained, the Governor in Council might appoint only two persons to be the Agents for the purposes of such Act, who should have, exercise, and perform all the powers, authorities, or duties by such Act given to, vested in, or imposed upon the Agents appointed under such Act, and that throughout such Act the words " the Agents " should be deemed to refer to and include the two persons by the now-reciting Act authorised to be appointed to be the Agents for the purposes of "The New Zealand Consolidated Stock Act, 1877 " : And whereas by another Act of the said Legislature, the Short Title of which is "The Consolidated Stock Act, 1884 " (hereinafter called " the Act of 1884 "), it is enacted that the now-reciting Act should be incorporated with and read as a part of "The New Zealand Consolidated Stock Act, 1877," and that the Agents mentioned in the now reciting Act should be the Agents from time to time appointed under the said " New Zealand Consolidated Stock Act, 1877 ": And whereas various amounts of New Zealand Consolidated Stock have from time to time been duly created and inscribed in the books of the Governor and Company of the Bank of England by the Agents in England duly appointed for the purposes of the said Acts of 1877,1881, and 1884, or some or one of them, and duly empowered to exercise all the powers by such Acts exercisable by the Governor in Council upon the terms and conditions respectively mentioned in the several deeds-poll enumerated in the schedule hereto: And whereas in pursuance of the power and authority vested in him by the New Zealand Stock Act and the New Zealand Stock Amendment Act (all previous appointments of Agents having been revoked) His Excellency the Governor of the Colony of New Zealand did, by an Order in Council bearing date the first day of

No. Value. Date of Issue. Due Date. Interest. Payable at 1 £ 500,000 1895. 28th November 1896. 31st December 3J per cent, per annum as from The Agent-General for New Zealand in London. P. G. Julyan. W. B. Perceval. 27th January, 1896.

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February, 1892, appoint us, the said Sir Penrose Goodchild Julyan and Sir Westby Brook Perceval, from and after the first day of April, 1892, to be Agents for the purposes of the New Zealand Stock Act, and in that capacity to exercise all the powers by such Act exercisable by the Governor in Council: And whereas under the provisions of, and for the purposes of the public service of the colony as mentioned in " The Bank of New Zealand and Banking Act 1895," the Colonial Treasurer of the said colony has issued £500,000 debentures, which will shortly mature : And whereas by an Order in Council bearing date the third day of December, 1895, after reciting that by section 35 of "The Bank of New Zealand and Banking Act, 1895," it was, among other things, enacted that, with reference to debentures authorised to be issued by the Colonial Treasurer under the said Act, the Governor in Council might from time to time declare all cr any of the debentures to be convertible into stock as therein mentioned, and reciting that debentures to the amount of £500,000 under and for the purposes of the said Act had been issued by the Colonial Treasurer, and that it was expedient that such debentures should be declared to be convertible into stock as thereinafter mentioned, His Excellency the Governor of the Colony of New Zealand, in pursuance and exercise of the power and authority vested in him by "The Bank of New Zealand and Banking Act 1895," and acting by and with the advice and consent of the Executive Council of the said colony, did thereby declare all the debentures for £500,000 so issued as aforesaid to be convertible into stock created or issued under " The New Zealand Consolidated Stock Act, 1877," and " The Consolidated Stock Act, 1884 " : And whereas we, the said Sir Penrose Goodchild Julyan and Sir Westby Brook Perceval, in exercise and in pursuance of the powers and authorities in that behalf conferred upon us as aforesaid, have arranged with the holders of the said debentures for the said sum of £500,000 so issued as aforesaid to convert their debentures into New Zealand Consolidated Stock, upon the terms of receiving £100 of New Zealand Consolidated 3J-per-cent. Stock for each £100' represented by the said debentures so agreed to be converted : And whereas for the purpose of providing New Zealand Consolidated Stock to be issued for the conversions agreed upon, and for the payment of the expenses of and attending such conversions, and the creation and issue of the said stock, we, the said Sir Penrose Goodchild Julyan and Sir Westby Brook Perceval, in exercise and in pursuance of the powers and authorities in that behalf conferred upon us as aforesaid, have determined to create a further amount of not exceeding £505,000 of New Zealand Consolidated Stock, to be issued as hereinafter mentioned, and to be in addition to and to rank pari passu with the amount of New Zealand Consolidated Stock which has been and shall hereafter be created and issued : And whereas we have further determined that such further issue of stock shall be created, issued, and inscribed under the New Zealand Stock Act and the Act of 1884, and we have also determined the amount, manner, price, time, terms, and conditions on, at, and subject to which such stock shall be issued and inscribed, and the dividends thereon be payable, and the principal thereof be redeemable, such amount, manner, price, time, terms, dividends, and conditions being those hereinafter mentioned : And whereas it is expedient that our determination to create such additional amount of £505,000 New Zealand Consolidated Stock, to be so issued and redeemable, shall be declared and manifested under our hands and seals: Now therefore these presents witness, and we, the said Sir Penrose Goodchild Julyan and Sir Westby Brook Perceval, in exercise and in pursuance of the powers by the New Zealand Stock Act, the New Zealand Stock Amendment Act, the Act of 1884, and "The Bank of New Zealand and Banking Act, 1895," and by the Orders in Council or any or either of them vested in us, and of all other powers and authorities hereunto enabling us, do by these presents declare the New Zealand Loan of £500,000 debentures so issued as aforesaid to be convertible into stock : And we do hereby authorise the creation and issue of and do hereby create a further amount of five hundred and five thousand pounds sterling of capital stock, to be called " New Zealand Consolidated Stock," in addition to and to rank pari passu with the said New Zealand Consolidated Stock heretofore created and issued under the provisions of the said deeds-poll mentioned in the schedule hereto or any or either of them during the existence thereof, and with such further amount of New Zealand Consolidated Stock as may be issued in pursuance of or as mentioned in the said deeds-poll or any or either of them, and also with any further amount of New Zealand Consolidated Stock which shall be hereafter created and issued: And we have determined that: (1). So much of the same capital stock as it shall be necessary to issue to the holders of the debentures now outstanding as aforesaid, and which may be deposited for conversion on or before the first day of March, 1896, shall forthwith, after the date of such deposit, be issued to such holders at the rate of £100 of stock for every nominal £100 represented by any of the said outstanding debentures agreed to be converted as aforesaid and upon the surrender of the same respectively. (2.) So much of the same capital stock as it shall be necessary to sell for the purpose of raising money for the payment of such expenses as aforesaid shall from time to time be sold and issued to the purchasers thereof or their respective nominees at such price or prices as can be reasonably obtained for the same. (3.) The interest or dividend to be paid on the said further amount of five hundred and five thousand pounds sterling of stock so created by us as last aforesaid, or any lesser amount which shall be from time to time issued, shall be at the rate of three pounds ten shillings per centum per annum, and shall be payable half-yearly at the Bank of England, on the first day of January and the first day of July in each year, calculated from the first day of January, 1896; and in cases of sales of stock for payment of expenses from the days or times to be agreed upon with the purchases thereof, until in every case the first day of January, 1840. (4.) And that on the first day of January, 1940, the capital shall be repaid at par, at the same place. And lastly we do further declare that the revenues of the Colony of New Zealand alone are liable in respect of the stock hereinbefore described and the dividends thereon, and that the Consolidated Fund of the Uuited Kingdom and the Commissioners of Her Majesty's Treasury are not directly or indirectly liable or responsible for the payment of the stock or of the dividends thereon, or for any matter relating thereto. In witness whereof we have hereunto set our hands and seals this twenty-fourth day of January, 1896. The schedule above referred to :—

Date of Deed-poll., By whom executed. Rate of Interest. Repayable. 1st Dec, 1879 1st Jan., 1883 30th Oct., 1883 1st Jan., 1884 30th Dec, 1884 1st Jan., 1885 1st June, 1885 20th May, 1886 6th Oct., 1886 30th May, 1888 31st Oct., 1889 12th Mar., 1891 !6th Jan., 1893 Sir Penrose Goodchild Julyan, K.C.M.G., C.B., Sir Julius Vogel, K.C.M.G., and Montagu Frederic Ommanney, Esq. Sir Penrose Goodchild Julyan, K.C.M.G., C.B., and Sir Francis Dillon Bell, K.C.M.G. Sir Francis Dillon Bell, K.C.M.G., and Sir Penrose Goodchild Julyan, K.C.M.G., C.B. The like The like The like The like .. The like The like .. The like The like The like Sir Penrose Goodchild Julyan, K.C.M.G., C.B., and Westby Brook Perceval, Esq. The like Sir Penrose Goodchild Julyan, K.C.M.G., C.B., and Sir Westby Brook Perceval, K.C.M.G. The like .. £4 per cent. £4 per cent. £4 per cent. £4 per cent. £4 per cent. £4 per cent. £4 per cent. £4 percent. £4 per cent. £4 per cent. £3 10s. per cent. £3 10s. per cent. £3 10s. per cent. 1st Nov., 192» 1st Nov., 1929 1st Nov., 1929 1st Nov., 1929 1st Nov., 1929 1st Nov., 1929 1st Nov., 1929 1st Nov., 1929 1st Nov., 1929 1st Nov., 1929 1st Jan., 1940 1st Jan., 1940 1st Jan., 1940 LOth Mar., 1893 !0th Feb., 1894 £3 10s. per cent. £3 10s. per cent. 1st Jan., 1940 1st Jan., 1940 .0th May, 1895 £3 per cent. 1st Jan., 1940 !—B. 18.

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Signed, sealed, and delivered by the above-named Sir Penrose (1.5.) P. G. Julyan. Goodchild Julyan in the presence of— John R. Currie, Colonel, Greg's Lodge, Torquay. Signed, sealed, and delivered by the above-named Sir Westby (1.5.) Westby B, Perceval. Brook Perceval in the presence of — Leonard J. Maton, Solicitor, 21, Cannon Street, London.

Enclosure 2 in No. 40. Declaration for Inland Revenue Commissioners. It is hereby declared that, by " The New Zealand Consolidated Stock Act, 1877," being Act 41 Vict., No. 33, of the Legislature of the Colony of New Zealand, provision is made iv the terms following, that is to say:— Section 2. Whenever in any Act heretofore passed by the General Assembly, or that may be passed in the present or any future session of the General Assembly, authority is given to the Governor, or to the Governor in Council, to raise by way of loan any sum of money for the public service of the colony, then, unless there be some provision to the contrary in the Act by which such authority is given, such sum may be raised in the manner hereinafter provided. Section 3. For the purpose of raising such sum or sums of money under the authority of any such Act as aforesaid, it shall be lawful for the Governor in Council to create capital stock, to be called the " New Zealand Consolidated Stock" (hereinafter referred to as " stock "), subject to the provisions of this Act, to be issued in such amounts and manner, at such price and times, on such terms, and subject to such conditions, with such dividends, and redeemable at par at such times and on such conditions as the Governor in Council may before the creation thereof from time to time determine. Section 4. The Governor in Council shall have and may exercise the following powers and authorities or any of them :— (1.) He may from time to time declare all or any of the New Zealand loans, whether existing in the form of stock or not, to be convertible into stock, of such denominations, with such conditions and with such dividends, and redeemable at par at such times and on such conditions as he may before the creation thereof from time to time determine : (2.) He may authorise the creation and issue of such an amount of such stock in exchange for the securities held for such loans as may be necessary : . (3.) He may authorise the creation and sale of any such stock for the purpose of raising money for redeeming any outstanding stock or securities, and of paying any expenses in the creation of stock, and otherwise carrying out the provisions of this Act on such conditions as he-may determine: (4.) Any conversion so authorised may be effected either by arrangement with the holders of existing securities or by purchase thereof out of moneys raised by a sale of new stock, or partly in one way and partly in the other. Section 7. The Governor in Council may from time to time enter into any such agreement with the Bank of England as to the Governor in Council seems fit, providing for all or any of the following things (inter alia) :— (1.) For inscribing on the books of the bank any stock : (2.) For managing the creation, inscription, and issue of stock : (3.) For effecting the conversion of loans into stock and managing transfers of stock : (5.) For issuing stock certificates to bearer, and as often as occasion shall require reissuing or reinscribing stock and reissuing stock certificates : (10.) Generally conducting all business connected with stock or loans. For the purposes of this Act the expression " Bank of England " means the Governor and Company of the Bank of England, and includes their successors. Section 8. Every agreement made with the Bank of England in pursuance of this Act shall be as valid and effectual as if the terms thereof had been set forth in and enacted by this Act. Section 9. The Governor in Council shall have the powers and duties, and may do the following things, inter alia, for the purposes of this Act: — (1.) He may from time to time appoint three or more persons in England to be Agents for the purposes of this Act (which Agents for the time being are in this Act referred to as " the Agents "), and may empower such Agents or any three or more of them to exercise all or any of the powers by this Act exercisable by the Governor in Council. And it is hereby further declared that by another Act of the said Legislature, intituled " The New Zealand Consolidated Stock Act 1877 Amendment Act, 1881 " (hereinafter referred to as " the New Zealand Stock Amendment Act"), it was enacted that, notwithstanding anything in "The New Zealand Consolidated Stock Act, 1877," contained, the Governor in Council might appoint only two persons to be the Agents for the purposes of such Act, who should have, exercise, and perform all the powers, authorities, or duties by such Act given to, vested in, or imposed upon the Agents appointed under such Act, and that throughout such Act the words " the Agents " should be deemed to refer to and include the two persons by the now-reciting Act authorised to be appointed to be the Agents for the purposes of " The New Zealand Consolidated Stock Act, 1877 " : And it is hereby further declared that by another Act of the said Legislature, the Short Title of which is " The Consolidated Stock Act, 1884 " (hereinafter called " the Act of 1884 "), it is enacted that the now-reciting Act should be incorporated with and read as a part of "The New Zealand Consolidated Stock Act, 1877," and that the Agents mentioned in the now reciting-Act should be the agents from time to time appointed under the said " New Zealand Consolidated Stock Act, 1877 " : And it is hereby further declared that various amounts of New Zealand Consolidated Stock have from time to time been duly created and inscribed in the books of the Governor and Company of the Bank of England by the agents in England duly appointed for the purposes of the said Acts of 1877, 1881, and 1884, or some or one of them, and duly empowered to exercise all the powers by such Acts exercisable by the Governor in Council upon the terms and conditions respectively mentioned in the several deeds-poll enumerated in the schedule hereto : And it is hereby further declared that in pursuance of the power and authority vested in him by the New Zealand Stock Act and the New Zealand Stock Act Amendment Act (all previous appointments of agents having been revoked), His Excellency the Governor of the Colony of New Zealand did, by an Order in Council bearing date the Ist day of February, 1892, appoint Sir Penrose Goodchild Julyan, K.C.M.G., C 8., and Sir Westby Brook Perceval, K.C.M.G., the Agent-General for the Colony of New Zealand in the United Kingdom, from and after the Ist day of April, 1892, to be agents for the purposes of the New Zealand Stock Act, and in that capacity to exercise all the powers by such Act exercisable by the Governor in Council: And it is hereby further declared that His Excellency the Governor of the Colony of New Zealand did, by another Order in Council also bearing date the Ist day of February, 1892, and issued under the seal of the said Colony, empower the said Sir Penrose Goodchild Julyan and Sir Westby Brook Perceval to make any declaration required by or under the provisions of the Act of Parliament of the United Kingdom of Great Britain and Ireland known as " The Colonial Stock Act, 1877," and in and about such declaration and the leaving and record thereof with the Commissioners of Inland Revenue to do all such necessary acts as might or could have been done by or on behalf of the Government of the said colony under the provisions of the last-mentioned Act: And it is hereby further declared that under the provisions of, and for the purposes of the public service of the colony as mentioned in " The Bank of New Zealand and Banking Act, 1895," the Colonial Treasurer of the said colony had issued £500,000 debentures, which would shortly mature :

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And it is hereby further declared that by an Order in Council bearing date the 3rd day of December, 1895, after reciting that by section 35 of " The Bank of New Zealand and Banking Act, 1895," it was, among other things, enacted that with reference to debentures authorised to be issued by the Colonial Treasurer under the said Act, the Governor in Council might from time to time declare all or any of the debentures to be convertible into stock as therein mentioned; and reciting that debentures to the amount of £500,000 under and for the purposes of the said Act had been issued by the Colonial Treasurer, and that it was expedient that such debentures should be declared to be convertible into stock as thereinafter mentioned, His Excellency the Governor of the Colony of New Zealand, in pursuance and exercise of the power and authority vested in him by " The Bank of New Zealand and Banking Act, 1895," and acting by and with the advice and consent of the Executive Council of the said colony, did thereby declare all the debentures for £500,000 so issued as aforesaid to be convertible into stock created or issued under " The New Zealand Consolidated Stock Act, 1877," and " The Consolidated Stock Act, 1884 " : And it is hereby further declared that the said Sir Penrose Goodchild Julyan and Sir Westby Brook Perceval, in exercise and in pursuance of the powers and authorities in that behalf conferred upon them as aforesaid, had invited the holders of the debentures for the said sum of £500,000 so issued as aforesaid to convert their debentures into New Zealand Consolidated Stock, upon the terms of receiving £100 of New Zealand Consolidated 3J-per-cent. Stock for each £100 represented by the said debentures so agreed to be converted : And it is hereby further declared that for the purpose of providing New Zealand Consolidated Stock to be issued for the conversions agreed upon, and for the payment of the expenses of and attending such conversions, and the creation and issue of the said stock, the said Sir Penrose Goodchild Julyan and Sir Westby Brook Perceval, in exercise and in pursuance of the powers and authorities in that behalf conferred upon them as aforesaid, had determined to create a further amount of not exceeding £505,000 of New Zealand Consolidated Stock, to be issued as thereinafter mentioned, and to be in addition to and to rank part passu with the amount of New Zealand Consolidated Stock which had been and should thereafter be created and issued : And it is hereby further declared that by a deed-poll bearing date the 24th day of January, 1896, under their hands and seals, the said Sir Penrose Goodchild Julyan and Sir Westby Brook Perceval, acting as such agents, and so empowered as aforesaid, and in pursuance of all other powers and authorities in that behalf, did thereby declare the New Zealand loan of £500,000 debentures so issued as aforesaid to be convertible into stock: and they did thereby authorise the creation and issue of and did thereby create a further amount of five hundred and five thousand pounds sterling of capital stock, to be called '• New Zealand Consolidated Stock," in addition to and to rank pari passu with the said New Zealand Consolidated Stock theretofore created and issued under the provisions of the said deeds-poll mentioned in the schedule thereto (being identical in terms with the schedule hereto) or any or either of them during the existence thereof, and with such further amount of New Zealand Consolidated Stock as might be issued in pursuance of or as mentioned in the said deeds-poll or any or either of them, and also with any further amount of New Zealand Consolidated Stock which should be thereafter created and issued. And they determined that: — (1.) So much of the same capital stock as it should be necessary to issue to the holders of the debentures then outstanding as aforesaid, and which might be deposited for conversion on or before the Ist day of March, 1896, should forthwith after the date of such deposit be issued to such holders at the rate of £100 of stock for every nominal £100 represented by any of the said outstanding debentures agreed to be converted as aforesaid and upon the surrender of the same respectively. (2.) So much of the capital stock as it should be necessary to sell for the purpose of raising money for the payment of such expenses as aforesaid should from time to time be sold and issued to the purchasers thereof or their respective nominees at such price or prices as could be reasonably obtained for the same. (3.) The interest or dividend to be paid on the said further amount of five hundred and five thousand pounds sterling of stock so created by them as last aforesaid, or any lesser amount which should be from time to time issued, should be at the rate of three pounds ten shillings per centum per annum, and should be payable half-yearly at the Bank of England, on the first day of January and the first day of July in each year, calculated from the first day of January, 1890, and in cases of sales of stock for payment of expenses from the days or times to be agreed upon with the purchasers thereof, until in every case the first day of January, 1940. (4.) And that on the said first day of January, 1940, the capital should be repaid at par, at the same place. And it is hereby further declared that the revenues of the Colony of New Zealand alone are liable in resoect of the stock hereinbefore described and the dividends thereon, and that the Consolidated Fund of the United Kingdom and the Commissioners of Her Majesty's Treasury are not directly or indirectly liable or responsible for the payment of the stock or of the dividends thereon, or for any matter relating thereto. In witness whereof the said Sir Penrose Goodchild Julyan and Sir Westby Brook Perceval have hereunto set their hands this twenty-fifth day of January, 1896. The schedule above referred to: —

Signed by the above-named Sir Penrose Goodchild Julyan P. G. Julyan. in the presence of— John R. Currie, Colonel. Signed by the above-named Sir Westby Brook Perceval Westby B. Perceval. in the presence of— Leonard J. Maton, Solicitor, 21, Cannon Street, London.

Date of Deed-poll. Ry whom executed. Rate of Interest. Repayable. 1st Dec, 1879 Sir Penrose Goodchild Julyan, K.C.M.G., C.B., Sir Julius Vogel, K.C.M.G., and Montagu Frederic Ommanney, Esq. Sir Penrose Goodchild Julyan, K.C.M.G., C.B., and Sir Francis Dillon Bell, K.C.M.G. Sir Francis Dillon Bell, K.C.M.G., and Sir Penrose Goodchild Julyan, K.C.M.G., C.B. The like .. The like .. The like The like .. The like The like The like .. The like .. The like .. Sir Penrose Goodchild Julyan, K.C.M.G., C.B„ and Westby Brook Perceval, Esq. The like Sir Penrose Goodchild Julyan, K.C.M.G., C.B., and Sir Westby Brook Perceval, K.C.M.G. The like .. £4 per cent. 1st Nov., 1929 1st Jan., 1883 £4 per cent. 1st Nov., 1929 30th Oct., 1883 £4 per cent. 1st Nov., 1929 1st Jan., 1884 30th Dec, 1884 1st Jan., 1885 1st June, 1885 20th May, 1886 6th Oct., 1886 30th May, 1888 31st Oct., 1889 12th Mar., 1891 26thJan., 1893 £4 per cent. £4 per cent. £4 per cent. £4 per cent. £4 per cent. £4 per cent. £4 per cent. £3 10s. per cent. £3 10s. per cent. £3 10s. per cent. 1st Nov., 1929 1st Nov., 1929 1st Nov,, 1929 1st Nov., 1929 1st Nov., 1929 1st Nov., 1929 1st Nov., 1929 1st Jan., 1940 1st Jan., 1940 1st Jan., 1940 10th Mar., 1893 20th Feb., 1894 £3 10s. per cent. £3 10s. per cent. 1st Jan., 1940 1st Jan., 1940 10th May, 1895 £3 per cent. 1st Jan., 1940

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No. 41

The Agent-General to the Colonial Treasurer. (No. 386.) Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 25th February, 1896. I beg to transmit copy of the correspondence which has passed with respect to the conversion into stock, of £109,308 debentures, issued under "The Consolidated Stock Act, 1884," and the subsequent purchase of the stock by the Government Advances to Settlers' Office, by which you will see that the operation has been now completed. The £109,308 3f-per-cent. stock was, on the 22nd instant, inscribed in the joint names of myself, Mr. Kennaway, and Mr. Palliser, to be held by them as custodians under " The Public Securities Act, 1895," on behalf of the Government Advances to Settlers' Office, and on the same date the sum of £109,308 was transferred from Government Advances to Settlers' Office Account, at the Bank of New Zealand, to the Public Account at that bank. I have, &c, The Hon. the Colonial Treasurer, Wellington. W. B. Perceval.

Enclosure 1 in No. 41. Minute for the Stock Agents. 13, Victoria Street, London, S.W., 4th February, 1896. In addition to the 3J-per-cent. Consolidated Stock already inscribed under the deed-poll of the 12th March, 1891, a further amount of £17,000 is now required to be inscribed for the purpose of providing sufficient funds (1) to redeem the outstanding 6-per-cent. debentures (redeemable Ist June, 1896) issued under " The Auckland Loan Act, 1863," and (2) to meet conversion expenses. Again, in addition to the 3J-per-cent. Consolidated Stock already inscribed under the deed-poll of the 20th February, 1894, a further amount of £153,000 is now required to be inscribed for the purpose of providing sufficient funds (1) to redeem the 5-per-cent. Consol. debentures (estimated at £45,000) drawn this year for payment; (2) to> redeem £109,308 debentures, issued under " The Consolidated Stock Act, 1884"; and (3) to meet conversion expenses. I have, therefore, to request that the Bank of England be authorised to inscribe in the names of Mr. C. W. Palliser (Audit Officer) and myself the following amounts of 3J-per-cent. Consolidated Stock, namely : £17,000 being a further portion of the amount of £1,000,000 stock created by deed-poll of 12th March, 1891 ; and £153,000 being a further portion of the amount of £5,000,000 stock created by deed-poll, dated 20th February, 1894. W. B. Perceval.

Enclosure 2 in No. 41. Minute for the Stock Agents. 13, Victoria Street, London, S.W., 19th February, 1896. Referring to my minute (copy attached) of the 4th instant, I have to state that arrangements have since been made to sell the £109,308 3J-per-cent. stock mentioned therein to the Government Advances to Settlers' Office Account. * * * * , * The £109,308 stock will be inscribed in the names of Sir W. B. Perceval, Walter Kennaway, and Charles Wray Palliser, in accordance with the provisions of section 2 subsection (4) of " The Public Securities Act, 1895," copy of which I attach hereto. W. B. Perceval.

Enclosure 3 in No. 41. Gentlemen, — 13, Victoria Street, London, S.W., 21st February, 1896. We beg to request and authorise you to inscribe on receipt of this letter, in the names of Sir Westby Brook Perceval, Walter Kennaway, and Charles Wray Palliser, all of 13, Victoria Street, London, S.W., the under-mentioned amount of New Zealand 3J-per-cent. Consolidated Stock ; £109,308 being a further portion of the amount of £5,000,000 created by deed-poll dated 20th February, 1894. We are, &c, P. G. Julyan, W. B. Perceval, Stock Agents for the New Zealand Government. The Governor and Company of the Bank of England, E.C.

Enclosure 4 in No 41. Gentlemen, — Bank of England, London, E.C, 22nd February, 1896. I beg to acknowledge the receipt of your letter of yesterday's date, and to inform you that, in accordance with your request, the sum of £109,308 New Zealand £3 10s. per cent. Consolidated Stock has been duly inscribed in the joint names of Sir Westby Brook Perceval, Walter Kennaway, and Charles Wray Palliser. I am, &c, E. F. Stutchbury, The Stock Agents for the New Zealand Government, Chief Accountant. Westminster Chambers, 13, Victoria Street.

No. 42.

The Agent-General to the Colonial Treasurer. (No. 401.) Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 29th February, 1896. I beg to inform you that, at my request, the Stock Agents authorised the Bank of England to inscribe in the names of myself and the Audit Officer £61,000 of New Zealand 3|-per-cent. Consolidated Stock for the purpose of providing the funds required (1) to redeem the outstanding debentures issued under " The Auckland Loan Act, 1863," and (2) to redeem the 5-per-cent Consol. debentures in the hands of the public, which may be drawn this year for redemption. Of this amount (£61,000) of stock, £50,000 has been sold, and the net proceeds (£52,186 16s. 6d.) were paid into the Public Account on the 27th instant. The drawing of the 5-per-cent. Consol. debentures is fixed for the 18th March, and I do not propose to sell any further portion of the stock until after that date, as I shall then be able toascertain the exact amount of funds required.

21

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I attach copy of the Stock Agents' letter to the Bank of England, and copies of the contract notes of the sale of the £50,000 stock. I also enclose copy of the notice which, as stated in my letter of the 20th ultimo, I proposed to issue, giving the terms under which the outstanding 5-per-cent. Consol. debentures and those of the loan of 1863 can now be converted into stock, and stating that those of the provincial loans can also be converted into that stock. I have, &c, The Hon. the Colonial Treasurer, Wellington. W. B. Perceval.

Enclosure 1 in No. 42. Gentlemen,— 13, Victoria Street, London, S.W., 21st February, 1896. We beg to request and authorise you to inscribe on receipt of this letter, in the names of Sir Westby Brook Perceval and Charles Wray Palliser, both of No. 13, Victoria Street, London, S.W., the under-mentioned amounts of New Zealand 3|-per-cent. Consolidated Stock : £17,000, being a further portion of the amount of £100,000 stock created by deed-poll, 12th March, 1891 ; and £44,000, being a further portion of the amount of £5,000,000 stock, created by deed-poll, dated 20th February, 1894. We are, &c, P. G. Julyan, W. B. Perceval, Stock Agents for the New Zealand Government. The Governor and Company of the Bank of England, E.C.

Enclosure 2 in No. 42. New Zealand Public Debt. In continuance of the conversion of the under-mentioned debentures of the New Zealand Government loans, notice of which was given by the Bank of England in prospectus dated 14th February, 1894, holders thereof are informed that such debentures can be converted into New Zealand Government Consolidated Stock (inscribable at the Bank of England) on the terms following, that is to say : — Five-per-cent. Consols (Animal Drawings and Quarterly Coupons). —For every £100 in Consols debentures, £104 of 3J-per cent. Consolidated Stock. The coupon, due 15th April next, must be detached from the debentures, and will be paid at the due date. All coupons subsequent to that due 15th April must remain attached to the debenture when deposited for conversion. The interest on the 3|-per-cent. stock will date from the Ist January, 1896, the first halfyear's dividend being payable on the Ist July, 1896. Debentures for conversion on the above-mentioned terms must be deposited at the Bank of England not later than 15th March next. TJie annual drawing for the redemption at par of the Consols debentures will take place in March, and debentures deposited for conversion on or before the 17th March will not be affected by the drawing. All debentures drawn for redemption not brought in for conversion under the above terms will be paid off at par (£100) on and after 15th April, 1896. Five per cent, of the Loan of 1863 (Redeemable 1914). —For every £100 in debentures of this loan, £I]o 10s. of 3Jper cent. Consolidated Stock inscribable at the Bank of England on or after 3rd June next. The coupon for the halfyear's interest, due 15th July next, must be detached, and will be paid at the due date. Interest on the 3J-per-cent. stock will date from the Ist July, 1896, and the first half-year's dividend will be paid on the Ist January, 1897. Debentures to be converted under the above terms must be deposited at the Bank of England not later than the 30th May next, when the offer given as above to holders will expire. Debentures of this loan can also he converted into 3J-per cent, stock for immediate inscription on the following terms, namely : For every £100 in debentures, with all undue coupons attached, £111 of 3J-per-cent. Consolidated Stock, bearing interest from Ist January last. This offer will expire on the 31st March. Debentures still outstanding of the under-mentioned loans will be accepted for conversion into 3J-per-cent. Consolidated Stock on terms which can be ascertained on application to the Agent-General : (1) Lyttelton and Christchurch Railway loan, redeemable 1897; (2) Auckland loan, redeemable Ist June, 1896; (3) Otago loan, redeemable 1898 ; (4) Canterbury loan, redeemable 1915 and 1916. The Consolidated Stock herein mentioned will in every case rank pari passu with the New Zealand 3J-per-cent. Consolidated Stock already inscribed at the Bank of England, with dividends payable half-yearly on Ist January and Ist July, and redeemable at par Ist January, 1940. Before presenting debentures of any of the above-mentioned loans at the Bank of England for conversion, it will be necessary to furnish the Agent-General with particulars of the same in order that the bank may be authorised to receive them. W. B. Perckval, Agent-General. New Zealand Government Office, 13, Victoria Street, London, S.W., 28th January, 1896.

No. 48.

The Agent-General to the Colonial Treasurer. (No. 536.) Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 20th March, 1896. I beg to acknowledge the receipt of your letter (T. 96/110), No. 7, of the Bth February last, transmitting three debentures issued under "The Consolidated Stock Act, 1884," as per attached narration. My predecessor's letter, No. 386, of the 25th February last will have informed you that the operation of converting £109,308 of these debentures at par into 3i-per-cent. Consolidated Stock, as well as the sale of the said stock to the Advances to Settlers' Account, has been duly completed. I may add that the £109,308 stock has now been transferred from the joint names of Sir W. B. Perceval, Mr. Kennaway, and Mr. Palliser, to those of myself, Mr. Kennaway, and Mr. Palliser. I have, &c, , r The Hon. the Colonial Treasurer, Wellington. W. P. Beeves.

Enclosure in No. 43. Narration of Debentures issued under "The Consolidated Stock Act, 1884," due 28th November, 1895.

4—B. 18.

No. of Debenture. Value of each Debeuture. Date of Issue. Due Date. Due Date. Rate of Interes Rate of Interest. i 843 844 846 £ 1891. 258,400 28th November 45,000 28th November 15,841 28th November 1895. 28th November 28th November 28th November Per annum. H per cent. 4i 4*

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22

No. 44.

The Agent-General to the Colonial Treasurer. (No. 675.) Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 13th April, 1896. Eeferring to my letter, No. 140, of the 20th January last, I beg to report further on the conversion operations : — 5-per-cent. Consol. Debentures (Annual Drawings). From the 20th January last to the 18th March (the date of the annual drawing), £15,900 of these debentures were converted into £16,536 3|-per-cent. stock on the terms offered in the prospectus of the 28th January, copy of which was sent with my predecessor's letter, No. 401, of the 29th February last, and of these £15,900 debentures, £1,100 are included in the list of those drawn on the 18th March for redemption. The total amount of the drawing was £254,600, represented by £210,900 debentures converted in previous years, £1,100 converted as mentioned above, and £42,600 in the hands of the public which will be redeemed at par on the 15th instant by means of part of the proceeds of the sale of the £50,000 3J-per-cent. stock, which went into the Public Account on the 27th February last. Since the 18th March, £500 of these debentures have been accepted for conversion into 3-J-per-cent. stock, at the rate of £103 stock for every £100 in debentures, with all coupons subsequent to that of the 15th April attached. The outstanding debentures now in the hands of the public amount to £562,300. 5-per-cents of the Loan of 1863. From the Ist January to the 31st March, £1,400 of these debentures were converted into 3£-per-cent. stock, the terms being £111 stock for every £100 in debentures with all undue coupons attached. The outstanding debentures of this loan amount to £273,800. The sinking fund belonging to this loan consists at present date of £104,733 os. 9d., New Zealand 4-per-cent. Stock. Provincial Loans. Since the 20th January last, £1,600 of the debentures issued under " The Otago Loan Ordinonce, 1862," have been converted into stock, at the rate of £103 10s. of stock for every £100 in debentures with all undue coupons attached. Inscription of Additional Consolidated Stock. The following amounts of 3t-per-cent. stock have been inscribed since the Ist January, namely : £500,000, being a portion of the £505,000 created under deed-poll of the 24th January, 1896; £109,308, being a further portion of that created by deed-poll of the 20th February, 1894 ; £44,000, being a further portion of that created by deed-poll of the 20th February, 1894 ; £17,000, being a further portion of that created by deed-poll of the 12th March, 1891. The £500,000 stock was inscribed for the purpose of converting a debenture of equal amount issued under the provisions of " The Bank of New Zealand and Banking Act, 1895." The £109,308 stock was inscribed to provide for the redemption of debentures of equal amount issued under the provisions of " The Consolidated Stock Act, 1884." The £44,000 and the £17,000 stock, being a total of £61,000 were inscribed to provide for (1) the redemption of the drawn Consol. debentures in the hands of the public, and (2) the redemption of the outstanding debentures under " The Auckland Loan Act, 1863." The £500,000 stock was inscribed in the name of the Bank of New Zealand ; the £109,308 was inscribed in the names of the custodians appointed under " The Public Securities Act, 1895," holding the same for the Advances to Settlers' Account; and the £61,000 was inscribed in the names of the Agent-General and Audit Officer, to be sold and the proceeds to be applied in paying off the above-mentioned debentures. Of the £61,000 stock £50,000 was sold and the proceeds (£52,186 16s. 6d.)'paid into the Public Account on the 27th February, 'and the balance (£11,000) will have to be sold for the purpose of making up the amount required for the Auckland debentures, and for stamp duty, and other conversion expenses. 1 have, &c, The Hon. the Colonial Treasurer, Wellington. W. P. Beeves. Approximatr Cost of Paptr. —Preparation, not tfiven ; printing (1,410 copies), £13 Is. 6d.

By Authority : John Mackay, Government Printer, Wellington.—lB96.

Price 9d. !