I.—2b

54

reasons set forth, you request that that the Crown Agents may be instructed to keep all balances under their control belonging to the Government of New Zealand with the Bank of New Zealand in London. The Government acknowledge the fairness of your request, and will, by the outgoing mail, have the necessary instructions conveyed to the Crown Agents accordingly, it being understood that the Bank of New Zealand will allow the terms for Government balances in London that are allowed from time to time by the other banks. I have, &c, Thomas Russell, Esq., Wellington. William Fitzhebbeet. The Hon. the Colonial Teeasueee to the Manages, Bank of New Zealand, Wellington. Sib, — Treasury, Wellington, 12th June, 1868. I have the honor to submit for your consideration a proposition with respect to the supply of funds by your Bank in London, for the payment of interest and sinking fund on account of the various loans of this colony. The enclosed schedule will show the amounts that require to be provided, the days on which the respective payments have to be made, and the parties to whom the money is to be paid. The Government wishes that the Bank should provide these sums on the days on which they are required, without any further notice being given; and I therefore request that 1 may be informed of the terms on which the the Bank would undertake to do this. In conversation with the Inspector of the Bank of New Zealand, I suggested that the Bank should furnish a schedule similar to that now enclosed, showing the days on which it would require to be placed in funds to meet these payments ; and that prior to those days the Manager of the Bank in Wellington should apply to the Treasury for a Controller's order, authorizing the transfer of the required sum from the Public Account to the Bank, including the charge for remittance according to the scale at present in force. I understood from Mr. Murdoch that the Bank would be willing to enter into such an arrangement, when the terms should have been mutually agreed to. As the first payment that has to be provided for requires to be made on the Ist November, I hope to receive your answer in such time as to cause that payment to come under the proposed arrangement. I have, &c, The Manager, Bank of New Zealand, Wellington. John Hall. Mr. T. M. Stewabt to the Hon. the Colonial Teeasueee. Sib,— Bank of New Zealand, Wellington, 24th June, 1868. I have the honor to acknowledge receipt of your letter of 12th instant, proposing that the Bank should provide funds in London for the due payment of interest and sinking fund on account of the various loans of this colony, according to the dates specified in an accompanying schedule. In reply, I have to state, on behalf of the Bank, that we shall be glad to meet the views of the Government in this matter, and will arrange for the transmission of funds to meet the payment due on Ist November, subject to the terms hereafter to be agreed upon. As the settlement of these terms will require careful consideration, I am under the necessity of consulting with the Inspector of the Bank before submitting any definite proposal to you; but I trust that before the departure of the mail on Bth proximo, I shall be able to lay before you a statement of the different dates on which it would be necessary to place the Bank in funds here to meet the payments in London, and the terms on which we can undertake to make these remittances. I have, &c, T. M. Stewabt. The Hon. the Colonial Treasurer, Wellington. Acting Manager. Memorandum for the Hon. the Colonial Teeasueee. Bank of New Zealand, Wellington, 7th July, 1868. The Bank will undertake to comply with the request made in the Colonial Treasurer's letter of 12th ultimo, provided the Government agree to the following modification of the terms hitherto subsisting in regard to sixty days' sight bills —namely, that in future a premium of 3- per cent, will be charged on remittances made at that currency. Such a modification it is hoped will appear reasonable, when it is remembered that when the existing arrangement was made, in March 1867, the amount to be provided in London was not more than one-third of what has now to be paid, and since that date the selling rate to the public has uniformly been 1} per cent, premium. As desired, a statement is attached of the dates on which the interest and sinking fund should be paid here in time for the due dates in London. Mr. T. M. Stewabt to the Hon. the Colonial Teeasueee, Wellington. Sib — Bank of New Zealand, Bth July, 1868. Referring to my letter of 24th ultimo, in reply to yours of 12th idem, as to the terms on which the Bank will be prepared to provide funds in London for the due payment of interest and sinking funds on account of the various loans of this colony, I have the honor to inform you that the Bank will undertake the responsibility of forwarding the necessary remittances, provided the Government agree to the following modification of the arrangement hitherto subsisting in regard to sixty days' sight bills —viz., that in future a premium of -| per cent, will be charged on remittances made at that currency. Such a modification it is hoped will appear reasonable, when it is remembered that at the time the existing terms were agreed upon, in March 1867, the amount to be provided in