13

8.—14 a

amount of New Zealand Consolidated Stock 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, and which might be deposited for conversion on or before the respective dates mentioned in the Second Schedule thereto, should, on or 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 and upon the surrender of the same respectively: And that so much of the same capital stock as it should be necessary to issue to the holders of debentures then outstanding as aforesaid, and which might not be deposited for conversion until after the dates respectively mentioned in the Second Schedule thereto, should from time to time, subsequent to such dates, bo issued to such holders at the rates of stock to be respectively notified from time to time by the said Sir Francis Dillon Bell and Sir Penrose Goodohild Julyan at the Bank of England for every nominal £100 represented by any of such outstanding debentures and upon the surrender of the same respectively: And that so much of the same capital stock as it should be necessary to sell for the purpose of redeeming such of the debentures as might not be converted into New Zealand Consolidated Stock by the holders of any of such debentures, and for the payment of such expenses as aforesaid, should from time to time be sold and issued to the purchasers thereof, or their respective nominees, at such price or prices as could be reasonably obtained for the same : And that so much of the same capital stock as should be issued for the purposes of " The Lost Debentures Act, 188G," in satisfaction of any lost debenture, should be issued upon such terms as might be agreed upon between the Governor and the person interested, as provided by the said Act: And that the interest or dividend to be paid on the said further amount of £1,000,000 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 £3 10s. per centum per annum, and should be payable half-yearly at the Bank of England on the Ist day of January and the Ist day of July in each year, in cases of conversions of debentures lodged for conversion before the dates mentioned in the said Second Schedule thereto, from the days or times respectively mentioned in such schedule ; and in the case of debentures arranged to be converted subsequently thereto, from the days or times notified by them from time to time at the Bank of England ; and in cases of sales of stock for redeeming debentures as aforesaid, or for jMiyment of expenses, from the days or times to be agreed upon with the purchasers thereof; and in the case of stock issued for the purposes of " The Lost Debentures Act, 1886," from the days or times agreed upon as aforesaid, until in every case the Ist day of January, 1940 : And, further, that on the said Ist day of January, 1940, the capital should 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 the inscription 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 Julyan have hereunto set their hands, this ICth day of April, 1891. Signed by the aboved-named Sir Francis Dillon Bell in tho presence of Leonard J. Maton, Solicitor, 21, Cannon Street, London, B.C. (1.5.) F. D. Bell. Signed by the above-named Sir Penrose Goodchild Julyan in the presence of H. C. Boyd, Gentleman, Woodside, Torquay. (1.5.) P. G. Julyan. [For schedules see First and Second Schedule to Enclosure in No. 9, page 5.]

Enclosure 2 in No. 16, The Stock Agents to the Bank of England. Gentlemen, — Westminster Chambers, 13, Victoria Street, 24th April, 1891, Wo now beg to send you a print of the deed-poll,* dated 12th March, 1891, setting forth the creation of £1,000,000 3J-per-cent. New Zealand Stock for the purposes of the conversion of New Zealand loans now in course of being effected, and declaring the terms and conditions on which such stock may be issued. The necessary declaration to bring the stock under the provisions of "The Colonial Stock Act, 1877," and to enable the Bank to carry out the issue and inscription of the stock has been signed by us and lodged wth the Inland Revenue Board. A copy of the same is also enclosed.t We have already placed in your hands a copy of " The (New Zealand) Lost Debentures Act, 1886," and the Order in Council in pursuance thereof, appointing us Agents for the purposes of that Act. We have deemed it advisable that the present creation of stock should include stock to be issued for the purposes of that Act, and provision is made in the deed-poll accordingly. Arrangements have been made with the Commissioners of Inland Eevenue for the payment of composition for stamp-duty, after deducting the amount of the stamps already put upon the debentures sent in for conversion, so as to enable the stock, when inscribed in your books, to be transferred free of duty. The Commissioners are willing to receive the stamp-duty from the Bank, as has been done for previous issues of New Zealand stock, and will allow the Bank to cancel the stamps on the debentures sent in for conversion. We have now to request that you will cancel the converted debentures, so that the New Zealand Government may have the allowance of the stamps thereon; and that you will, as heretofore, pay to the Inland Revenue the amount of composition payable for stamp-duty upon the stock as the same is inscribed in the books of the Bank. We authorise the Bank to grant to such holders of the stock, as may desire the same from time to time, stock certificates to bearer in accordance with " The Colonial Stock Act, 1877," upon payment of the proper fee for the issue of such certificates. And, lastly, we authorise you to transmit dividend-warrants by post to holders, in accordance with the practice in the case of former issues of New Zealand stock. We are, &c, F. D. Bell, P. G. Julyan, Stock Agents of the New Zealand Government.

* Vide Enclosure to No. 9. i Enclosure No. 1.

No. 17. The Agent-Genekal to the Premier. Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 30th April, 1891. 1 received on the 28th instant your telegram inquiring whether my arrangements with the Bank of England provided for recouping to the Public Account the amount expended in paying off unconverted bonds, so as to give the Treasury the advantage of the whole sinking-fund accretions