8.—16

10

And it is hereby further declared that in respect of tho loans authorized by the several Acts of the said Legislature, mentioned in the said schedule, debentures to the amounts respectively set forth in Parts 1 and 2 of the First Schedule hereto had been issued, and the Governor of Now Zealand did, by an Order in Council bearing date the 9th day of March, 1885, authorize the Colonial Treasurer to issue 5-per-cent. debentures in exchange at par for equal amounts of those debentures which had been issued under the authority of " The Consolidated Loan Act, 1867," mentioned in the schedule to the Act of 1884, and the Colonial Treasurer did, by writing under his hand, duly authorize the said Sir Francis Dillon Bell and Sir Penrose Goodchild Julyan as such Agents as aforesaid to exercise all powers conferred upon him by such Order in Council and the powers conferred upon him by the Act of 1884: And it is hereby further declared that the said Sir Francis Dillon Bell and Sir Penrose Goodchild Julyan, in exercise and in pursuance of the powers and authorities in that behalf conferred upon them as aforesaid, did, in the year 1885, agree with the holders of some of the debentures issued under tho authority of " The Consolidated Loan Act, 1867," hereinbefore mentioned, to convert their debentures into New Zealand Consolidated Stock at the rate of £107 of New Zealand Consolidated Stock, hearing interest at the rate of £4 per cent, per annum for every £100 represented by a new debenture for seven years to the 15th day of April, 1892, issued to them in exchange for those held by them respectively: And it is hereby further declared that it was agreed that debentures to the amount of £3,051,700 should bo so converted as aforesaid ; but the stock to bo issued in 1892, in exchange for the said new debentures, has not yet boon created, and it is expedient that the same should be now created: And it is hereby further declared that the Governor of Now Zealand did, by an Order in Council bearing date the 24th day of February, 1886, authorize the Colonial Treasurer to issue 5-por-cent. debentures in exchange at par for equal amounts of those debentures which had been issued under the authority of " The New Zealand Loan Act, 1803," also mentioned in tho Schedule to the Act of 1884, and the Colonial Treasurer did, by writing under his hand, duly authorize the said Sir Francis Dillon Bell and Sir Penrose Goodchild Julyan as such Agents as aforesaid to exercise all powers conferred upon him by suchOrder in Council and the powers conferred upon him by tho t of 1884: And it is hereby further declared that there are debentures carrying interest at rates exceeding £4 per cent, per annum outstanding in respect of the loans issued under the authority of other Acts mentioned in the Schedule to the Act of 1884 to the amounts respectively mentioned in Parts 1 and 2 of the First Schedule hereto : And it is hereby further declared that by a deed-poll, bearing date the 20th day of May, 1886, under the hands and seals of the said Sir Francis Dillon Bell and Sir Penrose Goodchild Julyan, after reciting that they, in exercise and in pursuance of the powers and authorities in that behalf conferred upon them as aforesaid, had determined that all the New Zealand loans mentioned in the First Schedule thereto, being similar to the said First Schedule hereto, should be convertible into stock, and that they had agreed with the holders of some of the outstanding debentures mentioned in Part 1 and Part 2 respectively of the said First Schedule thereto to convert their debentures into New Zealand Consolidated Stock on or before the days and upon the terms respectively mentioned in the Second Schedule thereto, being similar-to the Second Schedule hereto, and that it was intended thereafter to endeavour to make arrangements with the holders of the other outstanding debentures mentioned in Part 1 and Part 2 respectively of the said First Schedule thereto for the conversion of the same respectively into New Zealand Consolidated Stock as and when it might be found conveniently practicable to do so ; and reciting that for the purpose of providing New Zealand Consolidated Stock to be issued for the conversions so agreed upon and intended as aforesaid, and for the purpose of raising money for the payment of the expenses of and attending such conversions, they had determined to create a further amount of not exceeding £10,000,000 of New Zealand Consolidated Stock, to be issued as thereinafter mentioned : They, the said Sir Francis Dillon Bell and Sir Penrose Goodchild Julyan, did by the now reciting deedpoll declare that in exercise and in pursuance of the powers by the said Acts and Orders in Council, or any or either of them, vested in them, they had created a further amount of ten millions sterling of capital stock, to be called " New Zealand Consolidated Stock," in addition to and to rank pari passu with the said New Zealand Consolidated Stock theretofore created and issued as aforesaid, and also with any further amount of New Zealand Consolidated Stock, bearing interest at the rate of £4 per cent, per annum, and redeemable on the Ist day of November, 1929, which should be thereafter created and issued and be inscribed in the books of the Governor and Company of the Bank of England : And had determined that so much of the same capital stock as it should be necessary to issue to the holders of the debentures then outstanding as aforesaid, or to the holders of new debentures issued as aforesaid, or as mentioned in the Second Schedule thereto, as the case might be, should, on and after the days or times in the same schedule respectively mentioned or referred to, be issued to such holders at the rates of stock respectively mentioned in the same schedule for every nominal £100 represented by any of the said outstanding debentures agreed to be converted as aforesaid, or by any new debentures issued as aforesaid, as the case might be, and upon the surrender of the same respectively : And that so much of such stock as it should be neeessary to sell, for the payment of such expenses as aforesaid, should from time to time be sold and issued to tho purchasers thereof or their respective nominees at such price or prices as could reasonably bo obtained for the same : And that the interest or dividend to be paid on the said further amount of ten millions sterling of stock so created by them as last aforesaid, or any lesser amount which should be from time to time issued, should bo at the rate of £4 per centum per annum, and should be payable half-yearly at the Bank of England, on the Ist day of May and Ist day of November in each year, in cases of conversions from the days or times respectively mentioned in the said Second Schedule thereto, and in cases of sales of stock for payment of expenses from the days or times to be agreed upon with the purchasers thereof, until the Ist day of November, 1929 : And, further, that on the Ist day of November, 1929, the capital shall be repaid at par at the same place : And it is hereby further declared that, in further pursuance of the said " New Zealand Consolidated Stock Act, 1877," and "New Zealand Consolidated Stock Act 1877 Amendment Act, 1881," and of the said Order in Council of sth November, 1881, the said Sir Francis Dillon Bell and Sir Penrose Goodchild Julyan have entered into an agreement with the Governor and Company of the Bank of England, providing (among other things) for theinscription in a register kept in England by the said bank, of the said stock mentioned in the said last-mentioned deed-poll to have been created and for the transfer of such stock when the same should be issued as in such deed-poll mentioned : And it is hereby further declared that the stock to be inscribed and transferred in conformity with such provision is the " New Zealand Consolidated Stock, " mentioned in the said last-mentioned deed-poll: And it is hereby further declared that the revenues of the Colony of New Zealand alone are liable in respect of the stock hereinbefore described, and the dividends thereon, and that the Consolidated Fund of the United Kingdom, and the Commissioners of Her Majesty's Treasury, are not directly or indirectly liable or responsible for the payment of the stock or of the dividends thereon, or for any matter relating thereto. In witness whereof the said Sir Francis Dillon Bell and Sir Penrose Goodchild Julvan have hereunto set their hands this 21st day of May, 1886. F. D. Bell. Witness —Leonard J. Maton, Solicitor, 21, Cannon Street, London. P. G. Julyan. [For Schedules, see Enclosure I.]

No. 6. • The Colonial Treasurer to the Loan and Stock Agents. Gentlemen, —■ Treasury, Wellington, 14th August, 1886. The pressure of Parliamentary business at this late period of the session prevents me, I regret to say, from writing so fully as I should wish regarding several questions relating to financial affairs.