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seen that a sudden emergency has arisen in this colony which caused the Government to introduce a measure to prevent any financial disaster which might occur. Telegrams received by the Secretary to the General Post Office, and clippings from the Evening Post of last evening, are also forwarded for His Excellency's perusal. The recent financial panics in Australia have caused a sensitiveness in New Zealand in financial matters, as evidenced by the run yesterday upon one of the soundest financial institutions in the colony—namely, the Auckland Savings-bank; and His Excellency's Advisers have taken due precaution to meet any emergency which may arise, and which might have been precipitated by the events referred to. Legislation of a similar character has taken place in New South Wales, and has had a very beneficial effect. The legislation in New South Wales took place during the panic, and His Excellency's Advisers deemed it advisable to anticipate any event of a like character which might occur in this colony, where the financial relations with the banking institutions are so closely interwoven with those of Australia. As evidence that Parliament considered this matter one of extreme urgency, the extracts from the Journals of the House of Eepresentatives and Legislative Council are herewith enclosed. The Premier would also point out that the second part of this Bill is only of a temporary nature, and does not come into operation unless by Order in Council and duly gazetted. E. J. Seddon.

Sept. 1,1893,

No. 11. (No. 36.) My Loed, — Government House, Wellington, 14th September, 1893. I have the honour to inform you that I yesterday gave my assent, in Her Majesty's name, to a Bill passed by the General Assembly of this colony entitled the Oamaru Loans Consolidation Act, of which I beg to enclose a copy. This, though a private Bill, is of such a nature that I think it my duty to draw your attention to its provisions. I have the honour to point out that legislation in the direction set forth in the Bill was asked for not by the Municipality of Oamaru but by a committee of the bondholders affected. (See letter from Messrs. Linklater and Co. enclosed, page 2, last paragraph.) Your Lordship will observe from the enclosed papers that default of interest on some of these bonds has already occurred, and that the main object of the Bill is to provide for the reduction of interest in certain of the loans, in order to enable the Corporation to carry on and to pay its interest. Your Lordship will also notice that out of the holders of a hundred and seventy-three thousand eight hundred pounds' worth of stock those holding stock to the amount of £17,900 only have not given their assent, but that this does not in all probability signify the dissent of the residue ; on the contrary, as far as is known only the owners of seven thousand four hundred pounds' worth have declined. Be that as it may, the minority, whatever its actual amount, is a very small one, and, though it may be a strong measure to deprive even so small a minority of its rights, there appeared to the Legislature of this colony to be reasons sufficient to justify them in passing this Bill into law. I enclose three documents giving all the information I have received on this matter, and I trust that my action has your Lordship's approval. I have, &c, GLASGOW. The Eight Hon. the Marquis of Eipon, G.C.M.G., &c.

Enclosures. Panama Street, Wellington, 13th September, 1893. Youe Excellency,—■ Oamaru Loans Consolidation. We have the honour to state, for your Excellency's information, — 1. That we received from Messrs. Linklater and Co., a very well-known firm of solicitors in London, instructions to act on behalf of the committee of the bondholders of the Borough of Oamaru. 2. We enclose copy of the letter from Messrs. Linklater and Co. containing their instructions to us, in which your Excellency will find detailed the reasons which induced the committee of the bondholders to come to the agreement which is embodied in the Bill. 3. We also enclose copy of the agreement which was duly made in February last in London between the committee of the Oamaru bondholders and Mr. Low on behalf of the borough.