7

8.—4

Enclosure in No. 21. The Hon. Mr. Laenach to the Loan Agents. Gentlemen, — London, 13th May, IS7B. I have the honor to enclose to you a copy of an Order in Council appointing me one of the Loan Agents under the New Zealand Loan Acts, 1876 and 1877, respectively, and in accordance with its terms I have to notify to you that I have arrived in London, and am prepared to apt with you as one of the Agents. I have, <fee., The Agents for New Zealand Loans, London. W. J. M. Laenach.

No. 22. Mr. May to the Loan Agents. Gentlemen,— Bank of England, E.G., 4th June, 1878. I have to inform you that the list of subscriptions for the New Zealand £5 per cent. 10/40 Debenture Loan was closed last night for London, and this morning for the country. The total subscriptions amount to £8,694,700 ; a pro rata allotment will therefore be made, and the letters will be posted to-morrow evening. I have, &c., F. May, _ The Agents for New Zealand Loans. Chief Cashier.

No. 23. The Hon. Mr. Ballance to the Agent-General, (Telegram.) Wellington, 26th July, 1878. What arrangements made to prevent interest on bank advances and loan running concurrently ? The Agent-General, London. Ballance.

No. 21. The Hon. Mr. Ballance to the Crown Agents. (Telegram.) Wellington, 26th July, 1878. Advices received to-day show interest new loans payable from 16th June only ; therefore bank order posted twentieth bo exercised only required extent. Advances from banks. Interest on New Zealand's advance, due 15th August, you will arrange pay in London. Interest South Wales, due first August, we pay hero. The Crown Agents, London. Ballance.

No. 25. The Agent-General to the Hon. Mr. Ballance. (Telegram.) London, 29th July, 1878. Used utmost exertion pay off all advances possible. Not much running concurrently. The Hon. Mr. Ballance, Yfellington. Yogel.

No. 28. The Hon. the Colonial Teeasurer to the Agent-General. Sir,— Treasury, Wellington, 26th July, 1878. Enclosed in a letter received by Hie Commissioners of Audit from the Audit Office in London, which arrived hero on the Bth instant, and which letter tho Commissioners referred to me for perusal, I found a specimen of the debentures issued under " The New Zealand Loan Act, 1877;" and, perceiving therefrom that the interest on this loan was payable on the Ist March and Ist September, immediate steps were taken to supply tho Crown Agents with the authority necessary to enable them to pay the interest due Ist September, and a bank order for the amount supposed to be required was forwarded to them by the first mail thereafter, that of the 20th instant. Having no advice as to the date from which the bonds were intended to bear interest, the order in question was prepared on the assumption that the sum required would be for a full half-year, dating from the Ist March. In the despatch of this order, advantage was taken of the first mail leaving New Zealand after receipt of the information that the money would be required on the Ist September; but, as I was quite aware that the mail by which the order was sent was not due in London till the 3rd, it was my intention to have advised you by telegram of its having been despatched, in the belief that, with that information in your possession, you would be able to arrange in some way for the payment falling due two days before the arrival of the mail. But, before sending you the intended telegram, I determined to await tho arrival of the Suez mail, then on the coast. This mail has arrived to-day, and I now learn —not from any advice received from the Loan Agents, but from a copy of the advertisement of the Bank of England calling for tenders, forwarded by the Audit Officer to the Commissioner of Audit—that the interest on the new loan dates (for the first coupon) from the 16th June only. The bank order sent to the Crown Agents