B.—ll

40

£ Interest at 4 per cent, on £107 4- £1-5 = 108-5 ... ... 4-34 Sinking fund ... ... ... ... ... -074 4-414 5 Saving ... ... ... ... .586 During the seven years currency of the new 5-per-cent. bonds the annual charge will be very slightly increased by interest on the expenses attending the first part of the operation. The sinking fund in respect of consols was estimated for the current year at £148,509. The drawn bonds at date of last drawing amounted to £1,510,600; and as the loan was £7,283,100, the amount outstanding is now £5,772,500, reducible this month by, say, £148,500. James C. Gavin.

No. 94. The Loan and Stock Agents to the Colonial Teeasueee. Sir, — 7, Westminster Chambers, London, S.W., 9th January, 1885. We have the honour to inform you that we have duly executed and enrolled the deeds creating the inscribed stock for £764,240 to be given to the Bank of England for paying off the 5-per-cent. 5-30 debentures. We transmit herewith two copies of the deeds, together with copies of the instructions we have given the bank for paying in moneys from time to time to the Crown Agents' account as the debentures are presented for payment. We have, &c, P. G. Julyan, E. D. Bell, The Hon. the Colonial Treasurer, Wellington. Loan and Stock Agents.

Enclosure 1 in No. 94. Sic, — 7, Westminster Chambers, 9th January, 1885. It will be in your recollection that our arrangement with the bank last July for the amount to be provided for paying off the New Zealand 5-per-cent. 5-30 debentures was that, upon receiving from us the scrip for £764,240 on the 12th instant, the Bank should place to our credit the sum of £745,600 on the 15th. As the debentures in question have to bo paid off by the Crown Agents, it is necessary to place that department in funds for the purpose; and we have accordingly to request that the hank will feed their account from time to time, as may be required, paying to their order round sums of money, and charging these sums against the £745,600 to be placed to our credit. As the debentures have to be sent in to the Crown Agents three clear days before payment, you will always receive the requisition in good time for the sum they want to be passed to'their credit. We have, &c, F. D. Bell, P. G. JWLYAN, The Chief Cashier, Bank of England. Stock Agents.

Enclosure 2 in No. 94. Deed-Pole. To all whom these presents shall come, We, Sir Feancis Dillon Bell, a Knight Commander of the Most Distinguished Order of Saint Michael and Saint George, the Agent-General for the Colony of New Zealand, and Sir Peneose Goodchild Julyan, a Knight Commander of the said Most Distinguished Order of Saint Michael and Saint George, and a Companion of the Most Honourable Order of the Bath, send greeting: Wheeeas by an Act of the Legislature of New Zealand, intituled " The New Zealand Consolidated Stock Act, 1877," it was, among other things, enacted that, for the purpose of raising any sum or sums of money under the authority of any Act that might be passed by the said General Assembly in any future session of the General Assembly authorizing the Governor in Council to raise by way of loan any sum of money for the public service of the colony, it should be lawful for the Governor in Council to create capital stock, to be called " New Zealand Consolidated Stock," such stock to be issued in such amounts and manner, at such price and times, on such terms and subject to such conditions, with such dividends, and redeemable at par at such times and on such conditions as the Governor in Council might before the creation thereof from time to time determine; and by the said Act it was further enacted that the Governor in Council might from time to time declare all or any of the New Zealand loans, whether existing in the form of stock or not, to be convertible inio stock of such denominations, with such conditions, and with such dividends, and redeemable at par at such times and on such conditions as he might before the creation thereof from time to time determine ; and might authorize the creation and issue of such an amount of such stock in exchange for the securities held for such loans as might be necessary, and might authorize the creation and sale of any of such stock for the purpose of raising money for redeeming any outstanding stock or securities,