B.— &A

10

In reply, we have to state that, in concert with the Agent-General and the Crown Agents for the Colonies, we will do our best to meet the requirements of the Government. At the same time, it would be desirable for the Government to anticipate to the least possible extent the proceeds of the loan which has yet to be negotiated. We are losing no time in deciding upon the arrangements to be made, but during the present month there is no probability of successfully floating the loan. We have, &c, P. G. Julyan. Julius Vogel. The Hon. the Colonial Treasurer, Wellington. M. F. Ommanney.

No. 28. The Loan Agents to the Colonial Teeasueeb. Sic,— 7, Westmister Chambers, London, S.W., Cth October, 1879. We have the honor to acknowledge the receipt of your letter No. 8, of the 15th August last, intimating to us that the Controller and Auditor-General had represented to your department that the auditing of our accounts in connection with the new loan, would be much facilitated if they were submitted to the Audit Officer in London for examination by him before transmission to the colony. In reply, we have to state that the suggestion of the Auditor-General will have our attention. We have, &c, P. G. Julyan. Julius Vogel. The Hon. the Colonial Treasurer, Wellington. M. F. Ommannet.

No. 29. The Loan Agents to the Colonial Tbeasueee. Sic, — 7, Westminster Chambers, London, S.W., Oth October, 1879. We have the honor to acknowledge the receipt of your letter No. 7, of the loth August last, informing us that the Government was in receipt of a telegram from the Agent-General intimating that the " Crown Agents, if well secured by debentures created by the Loan Agents, will accept sixtydays' bills, as arriving here [in London] September 30th, for £150,000, and £100,000 following three months," and that in conformity therewith the Government had drawn on the Crown Agents for £150,000 in favour of the Managing Director of the Bank of New Zealand, London. In reply, we have to state that the Crown Agents have accepted the bills for £150,000, and, in accordance with your directions, we will hand over to them debentures, when created, to such an amount as may be deemed sufficient security for the acceptances in question. We have, &c, P. Or. Julyan. Julius Vogel. The Hon. the Colonial Treasurer, Wellington. M. F. Ommanney.

No. 30. The Loan Agents to the Peemieb. (Received, 14/10/79.) Premier, New Zealand. Market very disinclined for large New Zealand loan. You must be content half negotiated now, other half not before end 1880, and undertake not to issue another loan for three years. Reply prompt and fully. Also send statistics showing generally employment money already borrowed, cost railways completed, return for same, cost railways in course construction, total colonial revenue and expenditure for past three years, and estimated for next year. Contents of this must not be revealed. We do nothing till your reply. Loan Agents. London, 13.

No. 31. The Pbemiee to the Loan Agents. (From "Wellington, 17/10/79.) Julyan, Vogel, and Ommanney, London. Could you not raise three millions now ? Considerable liabilities already incurred. Would not guarantee to end of 1882 suffice ? You have all statistics for past years, including Macandrew's last Statement. Estimates current year not yet settled. John Ham, Premier.