B.—No. 3,

the Crown Agents for the Colonies to the Hon. W. Fitzherbert, on finally closing the conversion and other operations which have been carried out by this department under his instructions. That the consolidation of the General and Provincial loans of the Colony has been a very substantial success, is now placed beyond doubt. The extent of that success and of the various measures adopted to attain it are fully described in the enclosed papers, and it only remains for the Crown Agents to offer their congratulations to your Government in having to so great an extent accomplished the important ends they had in view in passing "The Consolidated Loan Act, 1867." The discrimination shown in selecting an agent to carry out the intentions of the Legislature is also a matter upon which their congratulations are no less due ; and the Crown Agents cannot dismiss the subject without bearing testimony to the valuable services rendered to the Colony in this country by Mr. Fitzherbert, who by great tact and discretion has managed to conciliate all parties, without ever losing sight of the interests involved in his important mission. It was much to the surprise of those acquainted with official matters here, that on his first arrival he managed to effect the settlement of old accounts with the Home Government on the favourable terms he did ; and the fortunate results attending the consolidation of your public debts have been little less surprising to the financial part of the community. I enclose an account, cut from one of the daily papers, of a public banquet and testimonial which have just been given to Mr. Fitzherbert, and which I have no doubt will be little less gratifying to the Colonists generally than to Mr. Fitzherbert himself. I have, &<:., The Hon. E. W. Stafford, Wellington. P. G. Jultan.

10

CONSOLIDATION OE THE LOANS OE NEW ZEALAND.