B.—ll

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4. The Loan Agents will from time to time be instructed by the Government, either by post or cablegram, as may be found most suitable for giving effect to the understanding between the bank and the Government, to hand over to the Managing Director of the bank in London short-dated debentures of the New Zealand loan of 1882 corresponding in amount with the sums advanced. 5. The debentures issued in respect of each advance and the relative drafts on the Loan Agents to be surrendered by the bank on repayment of the respective advances. 6. It is understood the bank is not to be at liberty to hypothecate or use the debentures until after the Ist January, 1885, and then only should it not be making use of the bills. I have, &c, The Manager, Bank of New Zealand, Wellington. Julius Vogel.

No. 12. The Manages, Bank of New Zealand, Wellington, to the Colonial Treasurer. Sir, — Bank of New Zealand, Wellington, 15th September, 1884. I have the honour to acknowledge receipt of your letter of the 13th instant, No. 776, detailing the conditions under which the bank has agreed to make advances aggregating £500,000. I have, &c, George E. Tolhuest, The Hon. the Colonial Treasurer. Manager.

No. 13. The Agent-Geneeal to the Colonial Treasurer. Sir, — 7, Westminster Chambers, London, S.W., 29th July, 1884. Adverting to the Stock Agents' letter of the 14th instant, No. 327, reporting the arrangements made with the Bank of England for paying off the outstanding 5-per-cent. 5-30 debentures, I beg to request your attention to the correction of £700 made in the enclosed correspondence of the amount involved in those arrangements. The cash to be provided by the bank for paying off the bonds will now be only £745,600, instead of £746,300, and the stock issued to the bank in exchange will be £764,240, instead of £764,957 10s. I have, &c, The Hon. the Colonial Treasurer, Wellington. F. D. Bell.

Enclosure 1 in No. 13. The Agent-Geneeal to the Chief Cashiee, Bank of England. Sic, — 7, Westminster Chambers, London, S.W., 24th July, 1884. Adverting to the letters which recently passed between the bank and the Stock Agents on the subject of paying off the 5-per-cent. 5-30 debentures which were not sent in for conversion, I find that we inadvertently stated £503,700 as the amount sent in, leaving £746,300 outstanding. But on examining the lists sent in to us by the bank on the 24th April last, I find that I had not counted in £700 of bonds held by trustees, and that the actual amount of the 5-per-cent. bonds converted is really £504,400, leaving only £745,600 to be paid off. The cash, therefore, to be provided, by the bank next January will be £745,600 instead of £746,300, and the amount of stock to be given by the Stock Agents will be £764,240, instead of £764,957 10s. I have, &c, The Chief Cashier, Bank of England. E. D. Bell.

Enclosure 2 in No. 13. The Chief Cashier, Bank of England, to the Agent-Geneeae. Sib,— Bank of England, London, E.G., 25th July, 1884. I beg to acknowledge the receipt of your letter of yesterday's date correcting the sum required to pay off the outstanding New Zealand 5-30 debentures in January next to £745,600, and the amount of stock to be given in consideration for that sum £764,240. I have, &c, E. May, Sir Francis Dillon Bell, K.C.M.G., 7, Westminster Chambers, S.W. Chief Cashier.

hlbii—■■■! lIWWHIIIII lIIIIIWIII^MIIIIII 111 IMIII I HIIHI' ' No. 14. The Colonial Treasurer to the Loan Agents. Wellington, 29th September, 1884. Would like immediate conversion consolidated loan. How much inscribed stock should be offered to secure holders bringing in their debentures freely ? Am favourable giving only short option. Propose authorizing new loan million and half. Could you negotiate before Christmas ? Probably not necessary then float third million till late next year; or would it be better float two and half millions January? Fear waiting, other colonies borrowing so largely. Beply, advise all points,