A.—No. 9

6

CORRESPONDENCE BETWEEN THE GOVERNMENT OE

At present there exists in the market .1 great variety of New Zealand bonds of different denominations, owing to which they have suffered depreciation. 'The object contemplated by the Act is to remedy this state of things so far as may be found practicable, and to consolidate all the existing debts of New Zealand into one uniform security. And for the future the system under which the Provinces of New Zealand have heretofore been enabled to borrow money upon security of their provincial revenues without the direct sanction of the General Assembly has been put an end to. The whole existing external debts of New Zealand, direct and indirect, are as follows, viz:— General Government Loans. Imperial Guaranteed Loan of 1857 ... ... ... ... £500,000 Loan of 1861, 6 per cent., redeemable July, 1891 ... ... 150,000 War Loan, of 18G3. Ist Instalment, 5 per cent., redeemable 15th July, 1914 £1,000,000") 2nd Instalment, 4 per cent., guaranteed by Imperial) r( ,,. „„„ Government, redeemable Ist November, 1915 j 3rd Instalment, 6 per cent., redeemable 15thMarch, 1891 500,000 , q nfin nnn 4th Instalment, 6 per cent., redeemable 15th June, 1891 100,000 ' rf> uuu >uuu sth Instalment, 6 per cent., redeemable 15th June, 1891 250,000 6th Instalment, 6 per cent., redeemable 15th June, 1891 144,600 7th Instalment, 6 per cent., redeemable 15th Deer., 1891 505,400J £3,650,000 Provincial Government Loans. By what Total Amount Kates of Government. Authorised. Interest. Auckland ... ... £500,000 ... 6 per cent. Taranaki ... ... 25,000 ... 8 Do. ... ... 50,000 ... 7 "Wellington ... ... 50,000 ... 8 „ Do. ... ... 25,000 ... 8 Do. ... ... 50,000 ... 8 Do. ... ... 30,000 ... 10 Hawkc's Bay ... ... 60,000 ... 6 „ Nelson ... ... 29,000 ... 8 and 10 per cent. Do. ... ... 5,000 Do. ... ... 20,000 ... S per cenjfc. Canterbury ... ... 30,000 ... 8 Do. ... ... 300,000 ... 6 Do. ... ... 500,000 ... 6 Otago ... ... 35,000 ... 10 Do. ... ... 50,000 ... 8 Do. ... ... 500,000 ... 6 Do. ... ... 50,000 ... 8 Do. ... ... 50,000 ... 8 £2,359,000 Less 400,000 Not issiicd ... 1,959,000 Total ... £5,609,000 In addition to the foregoing amount, it is proposed to raise— For payments under "The Southland Provincial Debt Act, 1865," and " The Southland Provincial Debt Act, 1866" ... ... £380,000 For liabilities of the Provinces of Otago and Southland, under " The Surplus Eevcnuo Adjustment Act. 1867" ... ... ... 32,000 For further liability of the Province of Southland ... ... 42,000 For Telegraph Extension, Lighthouses, Colonial Defence, Eedemption of Taranaki Debentures, and Marine Survey ... ... 260,000 For taking up the total unraised and unissued Debentures, authorised by various Acts ... ... ... ... ... 400,000 £1,114,000 Power has been taken to convert the whole of the Loans of the Colony and different Provinces of New Zealand, as above specified : —• but the portion of the Colonial Debt which lias been guaranteed by the Imperial Government, amounting to ... ... ... ... ... £1,000,000 and the 7, 8, and 10 per cent. Provincial Loans, amounting to ... ... 499,000 are not included in any present proposal; they must be dealt with, if at all, separately. It is proposed to issue a five per cent. Loan with one per cent. Sinking Fund, to be invested in annual drawings, and the conduct of the entire operation has, been placed in the hands of Messrs. Julyan and Sargeaimt, the Crown Agents for the Colonies.