B.—ll

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No. 87. The Loan Agents to the Colonial Teeasueee. Treasurer, New Zealand. (Beceived 20th February, 1885.) Consolidated Loan 1867. After fullest reflection, we advise following: Firstly, your proposed exchangeable quantities would not be accepted; secondly, we think any operation which caused present issue new inscribed stock in large quantities would injure million and a half; therefore, we advise not making any offer involving immediate exchange inscribed stock for Consolidated Loan 1867 debentures; thirdly, on other hand, we think desirable operate before next drawing by taking advantage of new Act, provided could offer terms likely to insure success; fourthly, actuaries calculate average life of Consolidated Loan 1867 bond after next drawing at nearly thirteen years—therefore new 5-per-cent. bond, having only five years' currency, would be inadequate, especially as Consolidated Loan so largely held by financial bodies which are governed by annual chance of drawings; fifthly, therefore we advise you authorize us to offer seven years 5-per-cent. bond convertible at end currency into 106, or even 107, of inscribed stock; sixthly, we are inclined to think this would succeed unless war or serious complications suddenly intervene, which, however, we do not apprehend. Please instruct. Loan Agents. London, 19.

No. 88. The Colonial Teeasueee to the Agent-Geneeal. Agent-General, London. Auckland, 23rd February, 1885. Cable estimated cost about proposed conversion. Meaning of message uncertain between sixthly immediate. Bepeat interim words.

No. 89. The Agent-Geneeal to the Colonial Teeasueer. Treasurer, New Zealand. (Beceived 24th February, 1885.) Perplexed which words should repeat. Instruct whether you wish me explain Loan Agents' object more clearly. London, 23.

No. 90. The Colonial Teeasueee to the Agent-Geneeal. Agent-General, London. Auckland, 24th February, 1885. Loan Agents. What probable cost of proposed conversion. Bepeat next five words following sixthly.

No. 91. The Loan Agents to the Colonial Teeasueee. Treasurer, New Zealand. (Beceived 25th February, 1885.) Conveesion. Cost may be estimated about one and half per cent, upon amount converted. Following five words after sixthly : We are inclined to think. Loan Agents, London, 24.

No. 92. The Colonial Treasueee to the Agent-Geneeal. Agent-General, London. Wellington, 2nd March, 1885. Loan Agents. Approve proposed conversion on not worse terms than described in your telegram 19th February if you still think will not materially affect million and a half.

No. 93. Memobandum by the Seceetaey to the Teeasury. Treasury, Wellington, 2nd March, 1885. Conversion. Aft er seven years the annual charge will be — £ Interest at 4 per cent, on £106 +£1-5 for expenses = 107-5 ... 4-3 Sinking fund to produce £7 10s. in forty-four years ... ... '065 4365 5 Saving ... ... ... ... .635