PAPERS RELATIVE TO CONSOLIDATION OE LOANS.

B.—No. 3.

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No. 7. Tho Hon. W. Fitzherbert to the Hon. E. W. Stafford. 21, Cockspur Street, S.W., Sir,— London, 31st July, 1868. I transmit for your information and for record a memorandum of attestation of examination and delivery of the first series of new 5 per cent. Bonds of the Colony of New Zealand, which I have created as Agent under "The Consolidated Loan Act, 1807," and delivered over to the Crown Agents for issue. This has been signed in quadruplicate, and another will be foz'warded to the Hon. tho Colonial Treasurer by the next mail. This first series consists of 10,000 debentures, for the amount in tho aggregate of £3,780,000. In a transaction of this magnitude I was desirous that the act of delivery of the bonds for issue should not consist of a mere handing them over by me to the Crown Agents across an office table, but that it should be attended by the most independent kind of examination and the most formal attestation which I could devise. Each bond was examined by one of the gentlemen signing the memorandum ; and when they had been so checked and found correct, they were delivered by me to the Crown Agents, and their receipt taken, as appears at the foot of the memorandum. As no other bonds of the first series, except those specified in the schedule embodied in the memorandum, have been signed by me, the Colony will at all times possess, in the accompanying memorandum, a detailed voucher of the extent of their obligations in this behalf. The names of the gentlemen who performed this task constitute a guarantee which the Colony will appreciate ; but I cannot omit the opportunity of expressing my personal obligation to them for having consented to undertake the service ; for whilst I have all along perceived that it was not practicable for me to share the responsibility of controlling and directing the entire operations under the Seven-Million Loan Act, and have not therefore sought to divest myself of any portion of it, yet, considering the very large powers with which the Colony had invested me, I have not failed to recognize the importance of surrounding the creation and issue of the bonds with the safeguard of an independent check. 1 have, &c, The Hon. the Colonial Secretary, Wellington, N.Z. William Fitzherbert.

Enclosure in No. 7. Memorandum. On the 7th day of July, 1808, at the Office of the Crown Agents for the Colonies in London, the undersigned F. A. Weld, Esquire, of Kotherwas Park, Hereford; W. S. G-rahame, Esquire, of Auckland Lodge, Richmond, Surrey; and Henry Sewell, Esquire, of 11 Gordon Street, Gordon Square, London; at the request of the Hon. William Fitzherbert, the Agent appointed under "The New Zealand Consolidp.ted Loan Act, 1867," were present, and did examine and witness the delivery by the said William Fitzhcrbert to the said Crown Agents of the under-mentioned Debentures, created under the authority of the said Act, and signed by the said William Fitzherbert, viz.: —■ (First Series.) £ Debentures numbered Ito 800 inclusive, for £1,000 each ... 800.000 Ditto 1 to 2,500 do. £500 each ... 1,250,000 Ditto 1 to 4,000 do. £200 each ... 800,000 Ditto 1 to 9,300 do. £100 each ... 930,000 In all, 10,000 Debentures for the amoiint in the aggregate of ... ... £3,780,000 with 144 Coupons attached to each Debenture, a form of which is annexed to this Memorandum. And we do hereby attest such delivery accordingly. Signed by us, in quadruplicate, the day and year above mentioned. Fred. A. Weld, Wm. S. Grahahe, Henry Sewell. Received from the Hon. William Fitzherbert, the Agent appointed under "The New Zealand Consolidated Loan Act, 1807," the Debentures above specified, to be delivered by us to the Public according to the published conditions. Signed, in quadruplicate, this 7th day of July, 1808. P. G. Jtjlxan, 7 Crown Agents for W. C. Sargeaunt, j the Colonies.

No. 8. The Hon. W. Fitziierbert to the Hon. B. W. Stafford. 21 Cockspur Street, 8.W., SiE,— London, 31st July, 18G8. I have the honor to enclose copy of a Report, with enclosures, sent in to me by the Crown Agents, showing the progress made since the date of my last advices. I recommend the statement showing the calculation of rates of exchange for the 7, 8, and 10 per cent. Provincial Bonds to your attention and consideration. Some consider the rates as fixed too high ; others, that they are too low. I believe, however, that the rates have been adjusted with as much nicety as could be well attained, having regard to a successful issue. It will be seen that, according 3