B.—No. 4,
It is observed that you had in your hands on the date of your letter a balance of four thousand two hundred and fifty pounds fifteen shillings and six-pence, and that the draft referred to was discounted on the Ist January at a cost of Two hundred and ninety two pounds six shillings and six-pence. Without questioning your right to discount the draft at the time you did, I am directed by the Hon. the Colonial Treasurer to observe that as the operation was effected by your own establishment, a not inconsiderable portion of the discount charged would have been saved to the Colony if the sums as required to make payments had been advanced from time to time on " overdrawn account" until the maturity of the draft. 1 I have, &c, C. T. Batkin, The Managing Director Bank of New Zealand, London. For the Assistant Treasurer.
No. 8. Copy of a Letter from the hon. William fitzherbert to the inspector of the bank of new 1053.) ZEALAND. Sir,— Treasury, Wellington, 28th September, 1865. Referring to your letter No. 4-78, of the 19th instant, in which you suggest that the Bank should be allowed to charge a premium on drafts on England of per cent, less than the current rate at the time, such drafts not to have a currency of less than thirty days, I have now the honor to say that I shall be quite prepared to accede to your proposal, providing that the terms be considered as fixed and not conditional, for I submit, in reference to paragraph 3 of the letter under notice, that any arrangements I have to make respecting funds is an entirely distinct matter from the mere act of remitting. I have, &c, The Inspector Bank of New Zealand, Auckland. W. Fitzheebert.
No. 9. Copy of a Letter from the inspectok of the 3ank of new Zealand to the hon. c. w. Stafford (1471.) Sir,— Bank of New Zealand, Wellington, 16th December, 1865. In answer to the demands made by you, for various concessions in the management of the Government account, I have the honor to inform you : — Ist. The Bank will be willing to transfer the Colonial Treasury Account from Auckland to Wellington on the Ist proximo, it being understood that twenty-one days' notice is to be given by you, to the Manager of the Bank at Wellington, before any new business, involving advances, or any material change in the management of the account, can be entertained. 2nd. On the minimum monthly balance of the Sub-Treasurers' account in the various Provinces, the Bank will allow the Government interest at the rate of three and a half per cent, per annum. 3rd. Remittances to England and Australia will be made free of charge, providing the currency of drafts on England be not less than sixty days, and on Australia fifteen days. If drafts at a less currency be demanded, the exchange to be for drafts on England or Australia one half per cent, below the current rate, but never below par, and on Australia current rate. As you specially desire that the loan of £40,000, made by the Bank of Victoria, at ten per cent, interest, shall be redeemed, I propose that you now give the Bank an order on the Crown Agents at fifteen clays' sight (or a longer currency if you prefer it) which will be transmitted for collection on account of the Government, and, pending advice of its payment, the debt now owing the Bank of Victoria will, on 31st instant, be transferred to our account with you. With a view to some reciprocity in this negotiation, I have the honor to request you will ratify that portion of the Bank's agreement with your predecessors, which provides for twelve months' notice before making any change in the present banking arrangements of the Government. I have, &c, D. L. Murdoch, The Hon. E. W. Stafford Colonial Treasurer, Wellington. Inspector.
No. 10. Copy of a Letter from the HON. E. w. Stafford to the inspector of the bank of new (945.) ZEALAND. Sir, — Colonial Treasury, 18th December, 1865. I have the honor to acknowledge the receipt of your letter of the 16th instant, referring to certain demands made by me with respect to the arrangements of the Government account, and to reply to the respective propositions made by you. Ist. As regards the transfer of the Treasury account from Auckland to Wellington, I agree to the terms specified by you, with the addition of the words, if the new business involves an advance exceeding five thousand pounds.
3
CORRESPONDENCE WITH THE BANK OF NEW ZEALAND.