A.—3.

No. 6. The Agent-Geneeal to the Peemieb. Sib, — 7, Westminster Chambers, London, S.W., Bth April, 1885. On hearing that the s.s. " Buapehu " had arrived, which took out my letter of the 12th February relating to settled estates, I telegraphed to you asking whether I might proceed with the proposed Bill on the linos submitted by Mr. Mackrell; and I duly received your reply of yesterday, stating that you would telegraph instructions to me in about three weeks. By that time you will have had in your hands my later letter of the 12th March, with the draft Bill, so that the delay in receiving your instructions will really be an advantage. I have, &c, The Hon. the Premier, Wellington. F. D. Bell.

No. 7. The Peemieb to the Agent-Geneeal. Sie, — Premier's Office, Wellington, sth June, 1885. Eeferring to your letter (No. 318) of the 12th March last, I have now the honour to inform you that, having considered the draft Bill for investing money belonging to settled estates, prepared by Mr. Mackrell, Ministers are of opinion that as drafted they could not recommend it for New Zealand. So far as relates to the purchase of lands we do not think that any colony ought to undertake the very onerous duties which would be cast upon them by the proposed Bill. I had hoped tbat the Court of Chancery might have been authorized to allow purchases of land in the colony without any interference or liability so far as the colonial Government is concerned; and, if the purchase is only to be allowed on the terms mentioned by Mr. Mackrell, I feel certain that the Legislature of this colony will not pass any adopting Act should the Bill become law, nor would wo recommend it to do so. The question of investing money on mortgage and in inscribed stock is, we believe, one of vital importance to the colony. We are preparing to introduce a Mortgage Debenture Bill, and possibly, if it passes, you may be able to get the Bill of Mr. Mackrell's so formed as to allow the High Court of Justice, Chancery Division, to allow trust moneys to be invested under it. Sections 25 and 26 of Mr. Mackrell's Bill, if passed, would be of advantage to the colony, especially the latter. I would have replied to your letter earlier, but I hardly thought, from the pressure of business in England, that there would he any chance of the Bill being considered at present. I have, &c, Sir F. Dillon Bell, K.C.M.G-., Agent-General. Eobeet Stout.

By Authority: George Didsbuby, Government Printer, Wellington.—lBBs.

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