B.—ll

12

tion, if his services were to be retained. I accordingly asked him to state them, and I have just received the letter, copy of which is enclosed herewith. I have only one remark to make on it, which is that, while Sir Penrose is quite correct in saying, what indeed is familiar to the Government, the £2,000 I arranged he should receive was only fixed in relation to conversion operations; I have never understood that he had any other claim upon the Government with respect to past transactions. I have, &c, The Hon. the Premier, Wellington. F. D. Bell.

Enclosure in No. 24. Sir P. G. Julyan to the Agent-Geneeae. Dear Sic Francis Bell, — Cornwall House, Brompton Crescent, S.W., 10th September, 1884. In a recent conversation you reminded me that the period for which it was arranged that I should act, jointly with yourself, as Agent for the conversion of the public debts of New Zealand in stock would shortly expire, and you expressed a wish that I should name the terms upon which I might be willing to continue my services to your Government for a further period. In compliance with that wish permit me to remind you that, although the arrangement which you invite me to renew was exclusively confined to operations in stock, I have long been acting in several other capacities : (1) As Stock or Conversion Agent, (2) as Agent for raising new loans, (3) as one of the Sinking Fund Trustees, (4) as Commissioner of the Public Account, and (5) as Agent for dealing with debentures guaranteed by the Imperial Government. In the first of these capacities I have, as you are aware, received during the last three years, an honorarium of £2,000, equal to £666 13s. 4d. per annum. Throughout the same period I have not received anything for fulfilling the responsible duties devolving upon me in respect of the other offices. The uncertainty as to the possible extent of future borrowings renders it difficult to name a fixed amount for new loans, unless it be done in the shape of a percentage on the sums borrowed. This is the usual way of dealing with such operations; but, bearing in mind the various capacities in which I am called upon to act for your Government, and the difficulty in apportioning to each its proper share of responsibility and value, I think it would be preferable to include everything in one fixed annual sum, in the shape of a retaining fee ; and I venture to name £800 per annum as a reasonable fee to cover all the foregoing services. I would further propose that such arrangement should be considered as extinguishing all claims in respect of the past, and that it should continue in force for four years from the termination of the present one. No one knows better than yourself how much the success of great financial operations, such as we have had to conduct, depends on the judgment and experience of your financial adviser; how great the responsibility involved, and how comparatively insignificant is the amount of the retaining fee compared with the advantages that sound advice in such matters is calculated to insure. Believe me, &c, P. G. Julyan.

No. 25. The Colonial Tbeasueeb to the Agent-Geneeal. Agent-General, London. Wellington, 3rd November, 1884. Ask Julyan reply following: Do you consider you have acted merely as adviser to Agent-General, or that you have had equal power and responsibility. We notice you have only signed some letters. In arrangement you now propose, are you willing exercise equal power, judgment, responsibility, and burden correspondence in all matters connected with loan conversion and negotiation ?

No. 26. Sir Penrose Julyan to the Colonial Treasures. Treasurer, New Zealand. (Beceived 7th November, 1884.) Have not acted merely as adviser. Have had equal power and responsibility as my colleague in loans and conversions. Am not aware that have omitted to sign any letters on these subjects. In proposed arrangement am willing to take equal share in responsibility, &c, appertaining to loans conversion and negotiation. Julyan, , mmm _______ London, 6. No. 27. The Colonial Teeasueee to the Loan Agents. Gentlemen,— Wellington, Bth November, 1884. Adverting to my letter No. 5 of the 11th ultimo, advising you that I had drawn upon you at 90 days' sight for £225,000 through the Bank of New Zealand, being part of a sum of £500,000 which the bank had agreed to advance to the Government, I have now the honour to inform you