B—No. 5

21

DRAFT LETTER ENCLOSED. Union Bank, Old Broad-street. Sib,— I have communicated to the Board of Directors of the Bank, the terms of the arrangement, made by me with Mr. Wilson and yourself at the Treasury, on Friday,—namely, that the £500,000 New Zealand Loan, 4per cent., bonds for 30 years, guaranteed by the Home Government "is to be " taken (at par) by the Union Bank of Australia, the bonds being dated three months before the time " the money is paid by the Bank whether in England or in the Colony, according to the wants and " desires of the Colony,"—the latter being understood to refer to the periods and wants indicated by you in our interview. I have the honor to state that the Bank is prepared to carry out this arrangement and to study the interests and wishes of the New Zealand Government as their Bankers and to fulfil your instructions as their Representative in this matter. I have the honor to be, Sir, Your obedient servant, James Cummins. 38, Old Broard-street, 21st October, 1857. Dear Sir, — I see that your views are not quite in accordance with mine. I have no doubt Mr. Wilson is quite aware of the true business position of the arrangements which I think I have expressed. I seldom visit the City on Saturday, but if Friday or Monday will suit, I shall await your call, or should you desire it, I will come up on Saturday, in which case pray name your own hour. I am, dear Sir, Jas. C. Cummins. Henry Sewell, Esq. 38 Old Broad Street, 23rd October, 1857. Dear Sir, — Your note of the 21st only reached my hands to-day, it appears however to be intended as a reply to mine of the same date. I think no real difference can exist between us touching the Loan. I have your memorandum as to the probable periods when money will be required in New Zealand, and the amounts to be provided there by the Bank. If you will favour me with an interview, I will lay before you your own memoranda and mine, which I have no doubt will satisfy you on this point. I am very anxious that we should agree on the terms of the official letter to prevent any possible discordance arising. I shall be happy to keep any appointment you make, wishing only to reserve between 11.30 a. m. and 2 p. m. on Tuesdays. Very truly yours, James Cummins. H. Sewell, Esq. 38, Old Broad Street, London, 28th October, 1857. Henry Sewei.l, Esq., Dear Sir, —Your letter of the 24th reached my hands in due course. I waited to consult some of our Board upon the subject, which I hope you will accept as my apology for not replying sooner. I am much obliged for the distinct statement you have given of the probable proportions of the Loan which are to be paid in London, in Sydney, and in New Zealand, and of the periods when the several payments may be required. I quite understand this information to have been given for my guidance ; I never regarded it as being more ; and I had hoped that I had clearly conveyed to you the assurance that the Bank would be ready to adopt such modifications as would not seriously disturb those probabilities. On this basis we agreed to take the Loan at par, the Bonds to be dated and bear interest three months prior to each payment, whether in England or the Colonies. I would suggest that in the official letter to be addressed by me to you, I should engage on behalf of the Bank, to provide funds in London for payment of the amount due to the New Zealand Company, and that we should receive Bonds dated three months prior to our paying that amount; that after three months notice by the Government to our Manager at Auckland we should provide for the due payment at any one of our Branches in New Zealand or Sydney, as may be indicated by the notice, the funds required for the payment of the New Zealand Debentures issued under the old aud last Debenture Acts, and the balance of the Loan, when required that such notice be furnished in duplicate ; and that on its production by us at the Treasury here, we should be entitled to receive Bonds dated three months prior to the day on which the Bank has to pay the money.