3

B.—ll

There are difficulties—chiefly from Protection tariffs of the separate colonies—in federating together like the Canadian Dominion. But, until this can be done, these colonies might federate financially, or, if even that involved still some difficulty and delay, they might agree for the present to issue an exactly similar 3-per-cent. stock in each separate case. Onthe other side is a table I have prepared showing the price your stocks would probably bring in the London market, according as you were able to approach the complete unity and uniforiHity of issue. In this table the five columns A to E represent as follows : — A. The price a 3-per-cent. would bring to each colony if issued quite separately and unconnectcdly, as the colonies hitherto have issued their loans. B. The price if they agreed in issuing a stock uniform in all respects, except.'that each colony was responsible only for its own issue. 0. The price if a financial federation could be achieved, so as to make but one and the same stock. D. The price if the federation were politically complete. E. The price to which the D stock might be expected to rise after some interval —say two to three years from the first issue—to accustom investors to the stock, and secure their adequate confidence. Faithfully yours, Hon. Sir H. A. Atkinson. W. Westgakth.

Approximate Cost of Paper.— Preparation, nil; printing (1,300 copies), £I IBs.

Authority: Gkobgk Didsbuhy, Government Printer, Wellington.—lBB9.

A. B. o. D. B. New South Wales ... Victoria South Australia Queensland Tasmania New Zealand I 90 90 87 87 85 80 92 92 90 90 88i 85 94 96 100