15

8.—4

No. 14.

The Hon. the Colonial Teeasueeb to the Stock Agents.

Gentlemen, — The Treasury, Wellington, 4th November, 1882. I have the honour to transmit to you herewith copies of " The Treasury Bills Act, 1879," and "The Treasury Bills Act, 1880," relating to Treasury bills now afloat, amounting in tho whole to £1,832,000, particulars of which are given in the enclosed statement. In both Acts provisio.n is made for taking up the bills at their due dates by borrowing upon debentures, with a currency of not more than three years from the date of issue, such sums of money as may be required for tho purpose; the Government, when introducing the two measures in question to Parliament, having intimated their intention to convert the debentures ultimately into stock under " The New Zealand Consolidated Stock Act, 1877," with a view to adding the amount to the permanent debt of the colony. You will observe, on referring to the 11th section of each Act, that the Colonial Treasurer is empowered to delegate to Agents in Great Britain or elsewhere the powers vested in him to create and issue the debentures ; and I may inform you that these powers have been delegated to Sir P. G. Julyan and Sir F. D. Bell, whom I have appointed Agents in London under tho sections quoted. One instrument, delegating these powers to the extent of creating debentures to take up £942,000 of the Treasury bills, was despatched to tho Agents on the 9th September last, and two further instruments, with respect to the remainder of the bills, amounting to £890,000, are being despatched by the present opportunity. Bills to the amount of £942,000 are now in London; there are on the way £180,000, and £710,000 are now being forwarded; all of which, it is anticipated, will be exchanged on tho 31st December next for three years' debentures to be created by the Agents I have named above. On that date the bills will be in the hands of the persons named in the enclosed statement, ready to be exchanged for the like amount of debentures. I have now, therefore, to inform you that, in order to give effect to the intention of the Government, referred to in the second paragraph of this letter, it is their desire that the debentures in question should be converted into 4-per-cent. stock as soon after their creation as, in your opinion, it would be prudent to move in the matter, due regard being had to the desirability of abstaining from any action calculated to interfere with the successful floating of the million loan authorized last session of Parliament, which, it is anticipated, will be offered to the public in January. It is the wish of the Government that these three years' debentures should be thus early converted into stock, as it is considered very undesirable that so large a sum as £1,832,000 should be retained any longer than is necessary in the form of what is practically a floating debt. I may state that I have reason to know that, with the exception of the Trustees of the Sinking Fund of the loan of 1863, with whom I have not yet had an opportunity of communicating on the subject, and who hold £367,000 of the Treasury bills, all the holders of bills about to be exchanged for debentures are desirous that tho latter should bo converted into 4-per-cent. New Zealand. Stock. As regards the terms on which the conversion should take place, the Government, after careful consideration, have decided that tho amount of 4-per-cent. stock to be offered for every 5-per-cent. debenture of £100 with a currency of three years should not exceed £102, the exact terms within that limit being loft to your discretion. With respect to the question of the currency, &c, of the Stock tho matter is loft entirely in your hands, to act as you may deem best for the colony. I may add that the Government are disposed to proceed with the conversion of the 4-|~ and 5-per-cent. 5-30 debentures on equivalent terms; but on this subject I will address you in a separate letter. I have, &c, The New Zealand Stock Agents, London. H. A. Atkinson.

Enclosure in No. 14. Treasury Bills, £1,832,000.

By whom held. Treasury Bills Act, 1879; duo Dec. 31, 1882. Treasury Bills Act, 1880; duo Juno 30,1883. Total. Bank of New South Wales ... Postmaster-General Prustees of Sinking Fund of Loan of 1863 Commissioners of Public Debt Sinking Funds Public Trustee government Insurance Commissioner Bank of New Zealand Colonial Teasurer for— Armed Constabulary Eeward Fund Nelson Eille Prize Fund £ 5 00,000* 108,900 367,000 17,700 50,200 98,200 100,000 £ 159^200 33,000 4,000 211,500 180,000 £ 500,000 268,100 367,000 50,700 54,200 309,700 280,000 2,000 300 2,000 300 —-S. 1,242,000 590,000 1,832,000 * Tho debentures to bo issued under the Act to tako up 120.CC0 by the Colonial Treasurer, as on investment oi these will bo held: £380,000 by tho Postmastor-Genoral E the Public Works Fund.