8.—5

10

2. I cannot but express my regret at the Government having refused to afford me any information in reply to the queries raised in my letter of 30th March, as it is quite impossible that any satisfactory tender could be made for the conduct of the Government banking business without some such information as that sought for being furnished. 3. By pursuing the course which appears to have been decided upon, the Government are virtually establishing a monopoly, as the Bank which has had the control of the Government account for }'ears (without competition of any kind) is in possession of particulars regarding its extent, character, and normal condition, knowledge of which is essential for the preparation of a satisfactory tender, but which knowledge is now denied to other institutions. 4. Under these circumstances, I am reluctantly compelled to inform you that it is not the intention of this Bank to make any offer in response to the notice from your office dated 25th February last. 5. I have no desire whatever to enter upon the political aspect of the question; but I may be pardoned for suggesting that as considerable delay has already taken place in giving effect to the recommendations contained in the Report of the " Committee on Public Accounts," presented to the House of Representatives at the close of last Session, and as time did not permit of those recommendations being then debated in Parliament, it would be well to defer dealing with the question of the Government banking arrangements until Parliament has again met and had an opportunity of discussing the whole question. This course seems to me to be the more desirable, as it is, to say the least, a moot point whether the weight of evidence taken before the Committee on Public Accounts was not in direct opposition to the proposed action of the Government. I have, &c, Thos. Buchanan, The Hon. the Colonial Treasurer, Wellington. Acting Inspector.

No. 17. Secretary to Cabinet to the Inspector, National Bank of New Zealand. Sir, — General Government Offices, Wellington, April 21, 1876. Tour letter, dated April 20th, and addressed to the Colonial Treasurer, has been submitted to the Cabinet; and lam instructed to inform you that the Government would under any circumstances feel it impossible to do business with your Bank whilst an officer of it could consider himself at liberty to write such a document. 2. The letter you addressed to the Colonial Treasurer, on the 39th March, asking for information upon certain points of the notice inviting tenders for the Government banking business, was replied to in one dated April 4th (T. 76-836). In that letter the Colonial Treasurer stated that he would comply with one of the suggestions you made; and the conditions were consequently amended. The other suggestions or objections made by you were dealt with as far as possible by the Colonial Treasurer, who, as to several points, explained that he could not supply anything in the nature of details which would not be calculated to mislead. Had there been any particular figures as to which you wished information, the Colonial Treasurer would then, if you had asked for them, have endeavoured to furnish them ; although, supposing you desired to ascertain the history of past requirements, you might, with a little care and trouble, have ascertained what you wanted from the published records of the Treasury. 3. You did not ask for such information, but, delaying until the last moment, you allege, in the face of the communication of April 4th, that information lias been " refused " to you ; and you do this in a letter in which you admittedly enter into a political discussion. I have, &c, T. Buchanan, Esq., Ac, &c, G-. S. Cooper. National Bank of New Zealand (Limited), Wellington.

No. 18. The Chief Officer, Union Bank of Australia, to the Hon. the Colonial Treasurer. Chief Officer's Department, Union Bank of Australia, Sir,— Christchurch, 20th April, 1876. I have the honor to acknowledge receipt of a printed circular dated 25th February, inviting tenders for the Government account. Having already expressed the opinion, when under examination before the Public Accounts Committee, that the account would be more satisfactorily conducted by an association of Banks, I feel precluded from sending an individual tender on behalf of this Bank. I have, &c, Jas. Palmer, Chief Officer, The Hon. the Colonial Treasurer, Wellington. New Zealand.

No. 19. The Hon. the Colonial Treasurer to the Inspector, Bank of New South Wales. Sir, —i General Government Offices, Wellington, 21st April, 1876. I have the honor to acknowledge the receipt of your letter of April 19th; and in reply to express my regret that you did not deem yourself at liberty to tender for the Government Banking Account.