9

8.—5

Tour circular is so indefinite upon many material points, such as what the requirements of the Government are likely to be in the way of overdraft, if any, or what probable balance the Government is likely to have in hand, that it is quite impossible we can respond to it with any hope that we could conduct the Government business satisfactorily to the Government and to ourselves. The question conveyed in clause No. 22 of your circular suggests that the number of branches a Bank has in the Colony may be made a material point by the Government in deciding the tenders; and I would respectfully point out to you that this alone has a tendency to make some of the Banks feel that it is useless to tender, and that any competition is but of a nominal character. I have, <fee, J. E. Hill, The Hon. the Colonial Treasurer, Wellington. Inspector.

No. 14. The Inspectoe, Bank of Australasia, to the Hon. the Colonial Tbeasubeb. Sic, — Bank of Australasia, Inspector's Office, Wellington, 20th April, 1876. I received yesterday afternoon Mr. Pox's letter of 19th instant, informing me by your direction that (as I originally supposed) the Report of the Public Accounts Committee was not adopted by the House ; and requiring as a condition precedent to the withdrawal of my letter of 4th idem, that I should express unqualified regret for having written it. The circumstances under which it was written have been already explained to you, and I venture to think should obtain for it generous consideration. Let me recapitulate them: —l, knowing nothing of Government or Parliamentary procedure, witnessed the adoption of a course which appeared to me calculated to bring about the premature solution of a question in which this Bank is warmly interested. I could not understand how it was necessary to accept tenders before Parliament had decided on the whole question of Government banking arrangements, and I therefore endeavoured, by a vigorous appeal for an extension of time, to avert a solution which promised to extinguish my last remaining hope of seeing the Government business distributed. The pleading was perhaps over-urgent, and I admit that the " reasons " advanced for not tendering might, with advantage, be toned down in one case and amplified in another. For instance, the fourth " reason," by inadvertence, states as a matter of fact what should have been stated as a matter of opinion ; and in using the term " weight of evidence " in the first " reason," I might have explained that it bore reference to the major advantages of public benefit, as distinguished from the minor advantages of simple book-keeping and departmental convenience. I have discovered with unfeigned regret that, on some ground not made clear to me, my letter has unintentionally given umbrage to yourself and the Government. The traditions of this Bank, the well-understood wishes of my Directors, and my own sense of what is right and proper, would effectually prevent me from knowingly giving offence; and I beg to disavow any intention of doing so, while expressing my readiness to offer an explanation of any portion of my letter which you may think requires explanation. For the reasons, then, that the letter has been productive of unpleasantness, that it does not in parts exactly approve itself to my own mind, and that I may, under a misapprehension of the effect of calling for tenders, have put the case more strongly than the occasion warranted, I would still prefer to withdraw it; and I frankly repeat my apology for any annoyance it may have inadvertently caused. But to express unqualified regret for having written it, appears to me tantamount to an admission on my part that I had offended of set purpose ; and this admission I must respectfully, but firmly, decline to make. Hoping that a reconsideration of the whole matter will induce you to accept these assurances, I have, &c, E. W. Moeeah, The Hon. the Colonial Treasurer, Wellington. Inspector, N Z.

No. 15. Seceetabx to Colonial Tkeasueee to the Inspectoe, Bank of Australasia. Sic,— General Government Offices, Wellington, 21st April, 1876. I have been instructed by the Colonial Treasurer to acknowledge his receipt of your letter of yesterday's date; and to say in reply, that it is impossible he can enter into any discussion upon your letter of the 4th instant. The Colonial Treasurer will cause to be forwarded to the Head Office of your Bank, in Melbourne, copy of the correspondence with you since his receipt of your letter of the 4th, and he feels compelled to decline further communication with you upon the subject. I have, &c, E. W. Morrah, Esq., &c, &c., E. Fox. Bank of Australasia, Wellington.

No. 16. . The Inspectob, National Bank of New Zealand, to the Hon. the Colonial Tbeasubee. The National Bank of New Zealand, Limited, No. 4-10.) Inspector and General Manager's Office, Sib,— Wellington, 20th April, 1876. I have the honor to acknowledge the receipt of your letter (T. 76-836) of 4th instant, in reply to mine of 30th ultimo. 2—B. 5.