3

8.—5

(7.) The total amount which, apart from any special agreement, the Bank would be prepared to advance in the colony on New Zealand Government securities, payable in the colony. (8.) The total amount which, apart from any special agreement, the Bank would be prepared to advance in the colony on remittable securities of the New Zealand Government. (9.) The total amount which, apart from any special agreement, the Bank would be prepared to advance on New Zealand Government securities in London. (10.) At what rate of interest, in each case, the Bank would make advances, as above referred to, in the colony and in London, respectively. (11.) What notice the Bank would require of an intention to overdraw the account in the colony and in London, respectively. As to Remittances. (12.) On what terms, as to exchange and currency of drafts, the Bank is prepared to make remittances from the colony to London. (13.) On what terms from London to the colony. (14.) On what terms from the colony to Australia. (15.) On what terms from Australia to New Zealand. (16.) On what terms within the colony by telegraph. (17.) On what terms by telegraph from London to New Zealand, for payments at three and fourteen days respectively. (18.) On what terms by telegraph from New Zealand to London, for payments at three and fourteen days respectively. (19.) On what terms tho Bank would be prepared to purchase bills on London. (20.) Up to what amount monthly the Bank would be prepared to negotiate drafts on London and on the colony, respectively. As to Payment of Debentures and Interest. (21.) On what terms, exclusive of charges for remittance, the Bank would, if required, pay coupons for interest payable in Australia. (22.) On what terms, if required, in London. (23.) Onwhat terms, exclusive of charges for remittance, the Bank would, if required, pay the principal moneys due on debentures or Treasury bills in Australia. (24.) On what terms, if required in London. (It must be understood that it is to remain optional with the Government whether the payments referred to in the four preceding sections shall be made through its bankers or not.) 26. The Government reserves to itself the right to decline any or all tenders received in compliance with this invitation. Julius Vogel, Treasury, 25th February, 1876. Colonial Treasurer.

No. 2. The Manages, National Bank of .New Zealand, to the Hon. the Colonial Tbeasubee. The National Bank of New Zealand, Limited, Sic, — Inspector and General Manager's Office, Wellington, 30th March, 1876. Eeferring to the notice from your department, dated 25th February last, calling for tenders for the banking business of the New Zealand Government, I have now the honor to request that you will be good enough to favour me with some particulars upon certain points, upon which the notice in question fails to convey the information necessary to enable me to arrive at something approaching an accurate knowledge of the probable requirements of the Government. As the Government are no doubt desirous of obtaining the best possible terms for their business, I do not imagine that you will object to furnish me with such information as may be within your power to afford upon the points raised by me. Before submitting these points, however, I may be permitted to point out what appears to me to be a very grave objection to the present proposals of the Government. It is this: —According to the notice which has been issued, the proposed arrangement is to be subject to six months' notice of termination ; so that such notice might be given immediately on the account being taken up,and the great expense necessarily incurred in the preparations for satisfactorily working the account might be so incurred for a six months' tenure merely. I would suggest, as worthy of consideration, that the account should be held by the successful tenderers for a certain definite period; and that, at the expiration of such period, the arrangements then existing be subject to six months' notice of termination. The following are the points upon which I should be glad to receive information, viz.: — As to Deposits. Ist. What would bo the probable amount which might be calculated upon as being generally at the credit of the Government in London ? 2nd. The same as regards the colony ? 3rd. What is meant by " interest-bearing securities," in sub-section 2of clause 1 ? Would the fixed deposit receipts of other banking establishments come under such head ? As to Advances. Ist. What would be the probable amounts which the Government might require under subsections Nos. 5 and 9 of clause 25 ? 2nd. What would be the probable amount of the transactions referred to in sub-sections Noa, 12 to 19 and 21 to 24 of clause 25 ?