B.—4a

20

feeling is strengthened by a telegram from the colony, which has appeared in the London papers, announcing the intended termination by the Bank of its connection with the Government. 7. When the new loan comes to be offered to the public by advertisement, if the Press of this country should unfavourably criticise the financial condition of the colony, the chance of its being successfully floated will, bankers say, bo greatly diminished, if not altogether extinguished ; and, although we do not indorse this gloomy view of the situation, we are bound to add, that the Bank of England, in refusing us further accommodation on any terms whatever, has been influenced by these considerations, and we cannot disguise from ourselves the fact that the present aspect of affairs is by no means assuring. 8. If the new loan be taken up before the end of the year, all doubts and difficulties will disappear ; but if, on the other hand, the public refuse to invest their money in it, then bankers will regard the debentures as non-convertible securities, and the situation will become seriously embarrassing. 9. There are also other liabilities, no less pressing than the drafts referred to, which must soon be provided for. So far as these are known on this side, they are given in the enclosed statement, and— including everything up to March next —form an aggregate of £2,207,786. We have, &c, (For the Crown Agents) The Premier, Wellington, New Zealand. P. G. Juxy.au.

New Zealand.—Estimated Liabilities to 31st March, 1880. £ b. d. Advances already obtained ... ... ... ... ... ... ... ... ... 1,102,500 0 0 1879. Deo. 1. Acceptances ... ... ... ... £150,000 0 0 Interest ... ... ... ... 4,000 0 0 14. Interest and sinking fund ... ... 13,196 0 0 30. Acceptances ... ... ... ... 100,000 0 0 31. Interest and sinking fund ... ... 19,116 0 0 Agent-General ... ... ... ... 40,000 0 0 1880. £326,312 0 0 Jan. 14. Interest and sinking fund ... ... 155,136 10 0 27. Bills to be provided for ... ... ... 100,000 0 0 31. Interest ... ... ... ... 135,000 0 0 Agent-General ... ... ... ... 40,000 0 0 —— 430,136 10 0 Feb. 24. Bills to bo provided for ... ... ... 175,000 0 0 29. Interest ... ... ... ... 85,777 10 0 Agent-General (say) ... ... ... 40,000 0 0 — 300,777 10 0 Mar. 14. Interest and sinking fund ... ... 8,060 0 0 Agent-General (say) ... ... ... 40,000 0 0 48,060 0 0 1,105,286 0 0 £2,207,786 0 P. G. Jtjlyan, London, 6th November, 1879. Crown Agent for the Colonies.

No. 70. The Peemiee to the Loan Agents. Gentlemen, — Government Offices, New Zealand, Wellington, 2nd January, 1880. I have the honor to acknowledge the receipt of your letter No. 999, of 4th November, explaining the course you thought it probable you would take with respect to the £5,000,000 loan, and the importance (as affecting your decision) of the answer to be given by the Bank of England to the Agents under " The Inscription of Stock Act, 1877," who had asked tho Bank if it was prepared to carry out the terms of the agreement made with Sir Julius Vogel in 1875. 2. Before your letter was received, your telegrams had informed the Government of the action of the Bank of England in respect of the loan, and the complete success of the operation. 3. The Government are awaiting detailed information by letter as to the negotiation of the loan. Pending its receipt, they must necessarily limit their acknowledgment of the value of your services to such expression of it as was given in my telegram, dated the 13th ultimo, of which a copy is attached. I have, &c, The Loan Agents for New Zealand, London. John Hall.

No. 71. The Peemiee to the Agent-Genehal. Sib, — Government Offices, New Zealand, Wellington, 2nd January, 1880. I have the honor to acknowledge, and to thank you for, your letter No. 1000, of 4th November, -with its enclosed copy of telegrams, as to arrangements made with and by the Crown Agents for the acceptance of certain Government drafts. I have written to the Crown Agents on the subject. I have, &c, The Agent-General for New Zealand, London. John Hall,