8.—5

4

3rd. Is it contemplated by the Government to enter into special agreements for advances other than what are suggested in the notice of 25th February; and if so, to what extent in London and in the colony, respectively ? A list of the branches of this Bank which are now open is enclosed. I should be glad to be informed as to the other places in which the Government would expect or desire us to be represented, in the event of our becoming the successful tenderers. I have, &c, The Hon. the Colonial Treasurer, "Wellington. Thomas Buchanan, Acting Inspector. List or Beanches of the National Bank of New Zealand (Limited). Auckland. Invercargill. Queenstown. Balclutha. Lyell. Eeefton. Blenheim. Mosgiel. Riverton. Cardrona. Napier. Switzers. Christchurch. Nelson. Taieri. Coromandel. New Plymouth. Tauranga. Dunedin. Oainaru. Timaru. Grahamstown. Outram. Tokomairiro. Greymouth. Palmerston. "Wanganui. Hamilton. Port Chalmers. "Wellington.

No. 3. The Hon. the Colonial Tbeasubee to the Manages, National Bank of New Zealand. Sib, — Treasury, "Wellington, 4th April, 1876. I have the honor to acknowledge the receipt of your letter of March 30, and in reply I have to say that I desire, as far as I am able, to supply the information for which you ask. 2. In deference to the possibility you point out of notice of withdrawal being given immediately after the account has been taken over, the Government have decided to alter the terms, so as to provide that six months' notice shall not be given on cither side until the expiry of sis months from the taking over of the account. 3. I am not able to give you information as to deposits in London and the colony which would be free from the possibility of misleading you, seeing that the amount of the Government deposits has varied considerably, and will, in all likelihood, do so. 4. In reply to your question, whether " fixed deposit receipts of other banking establishments " will come under the term " interest-bearing securities " in sub-section 2, clause 1, of the printed conditions, it seems to me that to adopt such an interpretation would conflict with the previous sub-section. 5. Respecting advances, I must give an answer similar to that given as to deposits. The requirements of the Government may be so various that it is impossible to afford information that would at all guide you. The Government desire to know the amounts which tenderers for the account would be willing to advance without special arrangements. 6. In reply to your second query under the head "Advances," I am not able to tell you the probable amount of the transactions under sub-sections 12 to 19. 7. As to the probable amount of the transactions under sub-sections 21 to 24, the Bank has hitherto dealt with the payment of interest in Australia; but the amount has not been large, and whether or not there will be any increase will depend upon whether further loans are negotiated in Australia. Hitherto, the payment of interest in London has not been made by the Government Bank, and, as you will have gathered from a foot-note to the Conditions, the Government are not prepared to undertake that the contracting Bank will have this business in future. 8. In reply to the question in the third sub-section under the head " Advances," I have to say that the requirements of the Government vary much, and that sometimes advances might be required in order to wait for favourable turns of the market for negotiating loans. Again, the answer to this question must much depend on the amount of ordinary advances which the Government will, under the arrangement to be made, be able to claim from the bank. 9. On the last point, I am not able to give information. No determination as to the number of branches required has been arrived at. The Government will have to consider all the proposals of each tendering Bank, and the number of branches is one of the points on which the tenderers must give information to the Government. I have, &c, T. Buchanan, Esq., National Bank of New Zealand (Limited), Julius Vogel. Wellington.

No. 4. [New Zealand Gazette, 6th April, 1876.] Be Tendees fob Bankin& Business. In order to secure to both parties the continuance for one year certain of any agreement entered into, the following is to be read in the place of the introductory paragraph to the Conditions published in the New Zealand Gazette, No. 12, of the 2nd March, 1876 :— Any agreement entered into to be terminable by either party at any time, on six calendar months'