B.—No. 3,

No. 1. Copy of a Letter from the Ceown Agents to the Hon. E. ~W. Staitobd. Offices of the Crown Agents for the Colonies, Spring Gardens, London, S."W. Sib,— ' 18th January, 1867. "With reference to your letter of the Bth October last, we have the honor to enclose, for the information of your Government, statements showing the condition of the New Zealand Sinking Funds, on the 31st December, 1866, and Abstracts of Investments made by the Trustees up to 31st December, 1866. These statements will in future be forwarded to you annually. "We have, &c., The Hon. the Colonial Secretary, P. G. Julyan, New Zealand. "W. C. Saegeatjnt.

Enclosure 1 in No. 1. Messrs. Jttiyan and Seegeaijnt, as Trustees, in Account with the Government of New Zealand, in respect of a Sinking Fund for the redemption of £500,000 four per cent. Debentures, issued under " The New Zealand Loan Act, 1863," to be paid off on the Ist November, 1915, by halfyearly Investments of a sum equal to one per cent, per annum on the total amount issued.

PAPERS RELATIVE TO THE SINKING FUNDS OF THE THREE MILLION LOAN.

1866. Dr. May 5.—To six months' contribution on £500,000, due the 1st May, 1866, received from the Crown Agents for the Colonies „ 16. —To six months' dividend due 15th May, on £2400 Ceylon Government six per cent. Debentures ... Less Income Tax ... £ s. d. 72 0 0 14 0 £ s. d. 2,500 0 0 1866. Cr. £ s. d. £ s. d. May 5. —By amount invested in the purchase of £1100 Ceylon Government six per cent. Debentures at 107: Nos. 385 to 388, four bondsof £200. 800 0 0 No. 300, one bond of £300 300 0 0 Soy. 15.—To six months' dividend due 15th November, on £2400 Ceylon Government six per cent. Debentures Less Income Tax ... 72 0 0 14 0 70 16 0 1,177 0 0 Brokerage ... ... 2 15 O „ 8. —By amount invested in the purchase of £1300 Ceylon Government six percent. Debentures at 107 : Nos. 389 to 394, six bonds of £200. 1,200 0 0 No. 425, one bond of £100 100 0 0 1,391 0 0 Brokerage ... ... 3 5 O Nov. 15.—By amount invested in the purchase of £400 Ceylon Government six per cent. Debentures, Nos. 498 to 501, at 104 416 0 0 Brokerage ... ... 10 0 70 1G 0 „ 15.—To six months' contribution, due 1st November, received from the Crown Agents 2,500 0 0 417 0 0 „ 17. —By amount invested in £53 5s. 9d. Consols, at 90J ... 48 0 6 Brokerage ... ... 0 16 48 2 0 „ 30. —By amount invested in the purchase of £2000 Victoria Government Debentures, Nos. 4648 and 4649 of £1000 at 104J 2,097 10 0 Brokerage ... ... 5 0 0 £5,141 12 0 2,102 10 0 £5,141 12 0 Penrose G. Jultan, "W. C. Saeqeaunt, Trustees. London, 1st Januai , 1867.