A LOAN OF £3,000,000 STERLING.

23

B.—No. 2.

As we have no personal interest whatever in the matter, we cannot be supposed to be influenced by any selfish motives in making these recommendations. As officers of the Imperial Government we perform such services for New Zealand an we should for any other Colony ; and if the Government of New Zealand find themselves under obligations to the Bank, or consider it otherwise to their interest to constitute them their sole loan agents, we beg that you will have no delicacy in setting aside any supposed obligation towards us in respect to the unsold portion of the Three Million Loan. We feel it to be our duty as public officers of the Crown plainly to point these matters out to you, and having done so, shall be quite satisfied to leave the Government of New Zealand to make what use they please of the information placed before them. I have, &c, Penhose G. Jultan, (For self and colleague). P.S.—A telegram just received from Mr. Larkworthy informs us that £10,000 more of the second series have been sold to-day at the minimum. The Hon. the Colonial Secretary, Wellington, New Zealand.

No. 39. The Hon the Colonial Teeastjiieii to Agents for the New Zealand Government. Gentlemen, — Treasury, Wellington, 14th July, 1865. With reference to your letter of the 26th April, I have the honor to remark, that whilst it appears that every anxiety has been evinced by the agents for the negociation of the 8 per cent, debentures, to guard the interests of the Colony and secure a maximum price ; yet it is to bo regretted that that maximum was fixed at so high a rate as to prevent the sale of the whole on the day they were first offered. The high rate of interest, coupled with the short currency of the securities, and the fact that a. minimum of par was fixed by law, all clearly indicated an intention to command the market and realise at that minimum, if practicable; and the amount actually tendered for affords sufficient proof that these calculations were fully justified, and that the whole of the debentures might have been quitted on the 31st March, at that minimum, if not at a slight advance. Neither can it be doubted, that if the whole amount of the New Zealand securities which had been offered for sale at a particular date, had been taken up at that date, that fact would have had a very beneficial effect on the sale of the remainder, and on the general credit of the Colony. It is to be hoped, however, that the course you have adopted will not prejudice the sale of the debentures remaining in your hands, and that the next mail will bring advices that the whole of them have been placed. I have, &c, William Fitzheebeet, Messrs. Larkworthy, "R. Porter, and W. S. Grahamo, London. Colonial Treasurer.

No. 40. The Hon. the Colonial Seceetaby to the Chows Agents. Gentlemen,— Colonial Secretary's Office, Wellington, 14th July, 1865. I have the honor to acknowledge the receipt of your letter No. 34-49S, dated 26th April, 1865. With regard to your observations as to the importance of maintaining an uniformity of agency for all New Zealand Loans, and the injury which has already arisen owing to a departure from this course the Hon. the Colonial Treasurer, whilst fully recognizing the force of these observations, remarks that the circumstances of the case, so far as relates to the short dated 8 per cent debentures were altogether of an exceptional character. The Bank of New Zealand was under very heavy advances to the New Zealand Government, and while such advances remained uncovered, and further advances were absolutely required to meet extraordinary current expenditure, it was deemed not unreasonable to concede the negotiation of the securities above referred to. But the Government have hitherto steadily declined to vary the agency already established for the negociation of the Three Million Loan, ■which may be regarded as the the New Zealand Loan. The suggestions relative to this loan made by you are in many respects similar to those which hail already presented themselves to the notice of the New Zealand Government, and they will probably be proposed for adoption to the Legislature. Of this and any other financial arrangements that may be made by the New Zealand Government you will be kept duly advised, and the Government tenders its thanks to you for the attention yen nave hitherto given to the financial interests of the Colony. I have, &c, J. C. Richmond. Messrs. Julyan and Sargcaunt, Spring Gardens, London.

No. 41. The Crown Agents to the Hon. the Colonial Seceetaet. Offices of the Crown Agents for the Colonies, Sib,— Spring Gardens, London, S.W., 26th May, 1865. I have the honor to acknowledge the receipt of your letter of the 11th March last, in which you request the Crown Agents for the Colonies to issue 4 per cent, debentures to the extent of £500,000 in favor of the Imperial Government, on account of the debt due by the Colony to tfett Government.