B.—7a

2

No. 3. The Cbown Agents to the Hon. the Colonial Teeasttbeb. Sib, — Downing Street, London, 29th June, 1876. * # # # # # v# # * and we are now anxiously considering whether the improved state of the market for colonial securities generally, which has taken place during the last three months, and the accumulation of capital due to large sales of Russian and Austrian securities by the people of this country, caused by the fear that England may become embroiled by the Eastern question, may not warrant our attempting to raise the whole amount at an early moment, by inviting public tenders for 5 per cent, debentures representing £1,250,000. We have made all our preparations to do this, and are only waiting for the first favourable turn in political events to carry it into execution. Indeed, we are not sure whether we should not now be right in adopting this plan without waiting for such indications, as anything like a general European war, which Russian armed interference in Turkey would probably provoke, might not unlikely place us in a much worse condition to negotiate a loan twelve months hence than we are at present; and by that time it is, so f.ir as we know, quite possible that a much larger amount will be wanted by your Government. We should have much preferred, out of consideration to Messrs. Rothschild and the Syndicate who joined them in taking up the last loan, to have abstained from coming on the market again until they had disposed of their respective holdings : but the amount remaining in their hands is still large ; we are bound to look upon your interests as paramount; and the other advantageous conditions of the market might be lost to us if we delayed operations until the last issue had been entirely absorbed. If, therefore, we see anything like a fair opening for appealing to the public within the next few days, we shall probably avail ourselves of it, rather than risk the embarrassments which might probably be entailed by any temporary arrangement. All are agreed that it would be hopeless to offer debentures bearing any less rate of inteivst than 5 per cent., nor do we think we should find any bank (in view of the possibility of their having to sell them) willing to make a conditional purchase of 4^ per cents, without a considerable enlargement of the margin. Added to that, there will be the important advantage on your side of having the use of a much larger sum of money by borrowing at the higher rate. The London money market was adversely influenced yesterday by a report that Servia had commenced hostilities against Turkey; but if England and Russia hold aloof, which a few days will probably determine, we may still be able to place your debentures, or at all events a part of them, on the market. * * * We have, <fee, The Hon. the Colonial Treasurer, P. G. Jttltan. New Zealand. W. C. Sargeaunt.

No. 4. The Loan Agents to the Colonial Tbeasuree. [Received, Bth August]. Post, Galle ; Telegraph, Adelaide. London, 27th July. Twelve hundred and fifty thousand pounds raised by sale of 5 per cent, at par. Will repay forthwith four hundred and fifty-nine thousand obtained on guaranteed debentures. Eight hundred thousand cash already received. 'J he Treasurer, "Wellington, New Zealand. Loan Agents.

No. 5. The Loan Agents to the Colonial Teeasueeb. [Received, 11th August]. Post, Galle ; Telegraph, Adelaide. Twklte hundred and fifty thousand pounds raised by sale of 5 per cents, at par. "Will repay forthwith four hundred and fifty-nine thousand obtained on guaranteed debentures. Nine hundred twentyone thousand cash already received. The Treasurer, Wellington, New Zealand. Loan Agents.

No. 6. The Loan Agents to the Hon. Sir J. Vogel. Sib,— _ Downing Street, London, 27th July, 1870. "We informed you, by our letter of the 29th ultimo, of the probability that we should, in the event of a favourable turn in political afl'airs, and in view of the possible contingencies that might ari.sc if we were to raise a large sum of money by the hypothecation of debentures, take advantage of the superabundance and cheapness of money to invite tenders, by public advertisement, for the unissued