8.—5

26

1. Whether the nominees in the warrant are under any obligation to appoint one or more Bank or Banks for the purposes therein mentioned ? 2. What is the nature and extent of the authority conferred upon them ? — («.) As regards the appointment of tbe Bank or Banks, tbat is to say, Is it a continuing authority to appoint from time to time as they think fit, or can they appoint only once for all, or is it an authority to direct how moneys belonging to the colony shall from time to time be disposed of? (b.) Would the nominees in the warrant bo controlled in the exercise of their power to operate upon any banking account by any agreement or arrangement entered into by the Treasury of the Colony, or by the Colonial Treasurer whilst in England; and how must such an agreement or arrangement be entered into to be binding on the nominees ? 3. What is the nature and extent of the duties and responsibilities of the nominees in the warrant ?— (c.) As regards the drawing out of moneys from the A. B. C. Bank, or any other Bank into which money may be paid by the direction or with the permission of the nominees in the warrant, that is to say, Are they so bound to exercise a discretion as to tbe amounts from time to time permitted to remain in any one Bank, as to be personally liable in case of the failure of such Bank, if they neglected to draw out moneys, so as to keep the balance within reasonable limits ? ( d.) If they acted in disregard of any such binding agreement or arrangement as mentioned in par. {b.) would they be personally responsible to the Government for any loss of interest thereby sustained, or for any compensation the colony might have to pay the Bank for the breach of any such agreement or arrangement ? 4. Generally, whether the nominees in the warrant are under any, and, if any, what responsibility, if they allow the large sum at present in the A. B. C. Bank to remain there, and whether they would be under any, and, if any, what responsibility if they remove it to some other Bank or Banks ? 5. Generally, in what manner, and by whom, can the authority given by the warrant be revoked, cancelled, or controlled ? 6. How can the nominees in the warrant relieve themselves, or obtain relief, from any responsibility they may be under in regard to it ? 7. And generally to advise the nominees named in the warrant as to their position, under the circumstances, and the course they should take. 21, Cannon Street, 29th April, 1875. Opinion. I think the nominees in the warrant (whom I will term F. J. and S.), having accepted it and acted on it, come under an obligation to appoint a Bank or Banks for the purposes mentioned. 2. I am of opinion that the warrant was an authority to appoint a Bank from time to time, and to change it as they saw fit; but that the letter accompanying the warrant fully authorized F. J. and S. to appoint the A. B. C. Bank, and freed them from responsibility for that selection and for its continuance—leaving, however, to them the duty of removing the account should it become expedient to do so from any change of circumstances affecting the Bank. (J.) lam of opinion that F. J. and S. will be practically free from liability arising from any arrangement entered into by the Colonial Treasury with the Bank—the Treasury standing really in the place of the Governor for this purpose —and the Governor being the principal of F. J. and S., who can revoke their authority at any time. It is plain that the Colonial Treasury have made some arrangement with the A.B. C. Bank (Minute of Aug. 2/73), and what the Colonial Treasurer has done in England seems to be only an improvement or modification of that arrangement; and I think F. J. and S. must not attempt to disturb it. (c.) I am of opinion that they are in no way liable for anything which the Colonial Treasury or Secretary have done with tho Bank, nor bound to exercise any discretion which will interfere with those arrangements, and if they did so, after knowing that such arrangements had the sanction of the Colonial Treasury or the Governor. lam inclined to think they would be responsible for any loss of interest or damage arising therefrom. 4. This is answered above. 5. The Governor can revoke the warrant at any time. lam of opinion that he can also contract the exercise of the power given by it, by directions accompanying the warrant, or by interfering through his Government in the selection of the Bank, and by making arrangements with them. 6. 7. I think that all which F. J. and S. are called upon to do is, to write to the Government calling their attention to the warrant of January 18/73, and the letter accompanying the same, to the minute of August 2/73, and to the arrangements made by the Colonial Secretary here with the Bank, and pointing out that these arrangements by the Government with the Bank relieve F. J. and S. from all responsibility for the continuance of the Government account with the Bank as well as for the large amount of money in its hands, reminding the Government of the letter of June 8/72 on occasion of the former loan, and asking their instructions as to whether F. J. and S. are still to undertake the responsibility of removing the account from the Bank in the event of any emergency arising which may render it expedient to act before the Colonial Government can be communicated with. As there is no pressing danger, nor likely to be for a good while to come, I think nothing more than this is required to define the position of F. J. and S., and free them from responsibility. Temple, 30th April, 1875. Joseph Brown. P.S.—Of course, if F. J. and S. know of any circumstances affecting the stability of the Bank, they should communicate them to the Government; if they don't, they should say so.—J. B.