3

H.—9,

held in the colony, and representing the inconvenience which would be caused by the withdrawal of any portion of the existing circulation. My Advisers concur in that opinion, and consider that until a further supply of copper or bronze coin shall have been introduced, it would be unwise to disturb the existing currency. I have, &c, James Feegusson, The Eight Hon. the Earl of Carnarvon. Governor.

Enclosure in No. 2. Memoeandum by Mr. Batkin. The information which I have been able to obtain as to the amount of Imperial copper coin in the colony is so meagre, that I feel considerable hesitation in expressing an opinion on the subject. In some of the provinces the copper currency includes a very large proportion of tokens, in others that proportion is comparatively small. The proportions of tokens, bronze and copper, which make up the total copper coinage in the colony, may, so far as I can judge, be averaged thus : — Tokens ... ... ... ... ... One-half. Bronze ... ... ... ... ... Three-eighths. Copper ... ... ... ... ... One-eighth. It is estimated that the total copper and bronze currency of the colony will amount to about £4,000, and a distribution of this sum in the proportions above set forth will giveTokens ... ... ... ... ... £2,000 Bronze ... ... ... ... ... 1,500 Copper ... ... ... ... ... 500 Total ... ... ... £4,000 As respects the propriety of the withdrawal of the copper coin from circulation, it must, I think, be admitted that the quantity of copper and bronze coin iu circulation in the colony is already inadequate to its wants, and is daily becoming more insufficient, owing to the increase of population and of commercial interchange. In the face of these facts it would be obviously inexpedient, even if it were possible, to withdraw any part of that coin from circulation without first introducing other coin to supply its place, and any attempt to do so would result in an immediate increase in the token coinage, an element which is already disproportionately large in the copper currency of the colony. In respect to the possibility of the measure, it is believed that the time fixed by the Imperial Government, the 31st March, 1875, as that within which the coin would be received at its nominal value, is far too limited to enable the colony to take advantage of the proposed arrangement. With a population so prosperous as that of New Zealand, and with a copper currency already insufficient, the proscription of the Imperial copper coin would have no effect in aid of its withdrawal from circulation. The object could only be attained with certainty through the assistance of the banks, and it is manifest that a long period, probably several years, would elapse before the whole of this coin would in the ordinary course of business pass into the hands of the banks. In view of the small quantity of the coin referred to in circulation, and of the considerations above adverted to, I submit that no attempt should be made to interfere with the circulation of Imperial copper coin until the Government is prepared to introduce into the colony an adequate supply of bronze coin, and thereupon to decry not only the Imperial copper but the token coinage likewise. C. T. Batkin, Treasury, 10th September, 1874. Secretary to the Treasury.

No. 3. The Eight Hon. the Earl of Caenaevon to the Offices Administeeing the Govebnment of New Zealand. (Circular.) Sib, — Downing Street, Sth December, 1874. With reference to my circular despatch of the 27th of April last, transmitting a copy of a correspondence between this department and the Treasury relative to the withdrawal of the old British copper coin from circulation in those colonies using the Imperial coinage, I have the honor to inform you that it having been represented to me that it would be desirable to extend the period during which this coin should be received at the Mint, I suggested to the Lords Commissioners of the Treasury that the period should be extended from the 31st of March next to the 30th of June, 1876, and their Lordships have expressed their willingness to sanction that date as the latest for which the Mint will be authorized to receive the coin in question at its nominal value. The copper coins which your Government may desire to return to the Imperial Mint should be carefully sorted and packed in bags, and consigned to the Crown Agents for the Colonies ; a letter of advice, with full details, should accompany each shipment, and each bag of coin should bear a label stating the amount and weight of its contents. Vou will of course take care to issue the Proclamation decrying this coinage in accordance with the wishes expressed by the Lords Commissioners of the Treasury in their letter of January 31st, enclosed in my despatch of the 27th of April last. I have, &c, The Officer Administering the Government of New Zealand. Cabnabvon.