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No. 31. The Agent-Geneeal to the Colonial Teeasueee. Sic, — 7, Westminster Chambers, London, S.W., 9th October, 1884. It is most essential, having regard to the issue of 2-J- millions of new stock instead of only one million in January, that the "statement" with which I shall have to accompany the Bank of England prospectus should contain the very latest particulars as to the state of the revenue, and especially as to the yield of the railways, during the calendar year 1884. I shall, therefore, be very glad if you will cause these particulars to be telegraphed to me as fully as possible in the last days of December : in a matter of such great importance the number of words in a telegram is immaterial, compared with the effect which the character of the statement accompanying the prospectus may have upon the market. I have, &c, The Hon. the Colonial Treasurer, Wellington. F. D. Bell.

No. 32. The Loan Agents to the Colonial Teeasueee. Sic, — 7, Westminster Chambers, London, S.W., 4th October, 1884. We had the honour to receive, on the 29th and 30th September, your two telegrams explaining your wishes respecting the conversion of the outstanding debentures of the consolidated loan of 1867, and the issue of a new loan of £1,500,000. Our attention had already been drawn to both these questions by the publication here, some time before, of a Beuter telegram containing a summary of your financial statement in the House of Bepresentatives on the 16th September; so that we had an opportunity of giving much consideration to the proposals, in anticipation of the explanation we presumed we should soon receive from you, and were thus enabled to answer, without delay, the questions which you put to us in your telegrams. We thought it desirable to make our answer very full, and, having done so, it hardly seems necessary to supplement it by further explanations in a letter now, especially as whatever decision you may have come to will have been made long before such explanations could be in your hands. Copies of the telegrams are hereto annexed. We have, Sec., P. G. Julyan,) t . , The Hon. the Colonial Treasurer, Wellington. F. D. Bell, J Jjoan ABents-

Copies of Telegrams enclosed in No. 32. 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.

The Colonial Treasurer to the Loan Agents. Wellington, 29th September, 1884. Addition to-day's message. To save competing with unplaced inscribed stock am disposed convert consolidated loan into three and half stock. Also issue new loan with option convert into three and half. Advise. Address all telegrams concerning finance, "Treasurer, New Zealand."

The Loan Agents to the Colonial Teeasueee. (Beceived Ist October, 1884.) Youe financial proposals. Firstly, as to converting Consolidated Loan, 1867. Beuter having announced that you propose to raise further loan, feel sure any operation Consolidated Loan, 1867, before you offer loan, extremely hazardous. Cannot possibly say what price would induce holders come in freely, but, anyhow, addition beyond actuarial equivalent of rate of interest must, even at four per cent., be highly injurious to new loan. As to converting into three and half, we have no hesitation saying would certainly fail, on any terms you could afford to give. We therefore strongly advise deferring any conversion until new loans placed. Secondly, as to loans. We believe that, provided you did not come upon market again with further new loans within twelve months, we might place whole two millions and a half. We consider most desirable not make separate operations, but bring out whole January. Thirdly, as to option to exchange into three and half. Are convinced that any attempt borrow at that rate of interest would prove disastrous. Not only are large amounts of inscribed stock still in speculators' hands, but you would be competing with three strongest colonies, which will probably come for thrice five millions at three and half between now and January. Now, while these issues are strongly against your attempting three and half, they are favourable to your four per cent. London, 30th,