8.—17

2

For every one hundred pounds of such debentures a new debenture will be issued for the same amount, bearing interest at the rate of 5 per cent, per annum for seven years, from 15th April, 1885, to 15th April, 1892, when it will be converted into £107 New Zealand 4-per-cent. consolidated stock inscribed at the Bank of England, which will rank pari passu with the 4-per-cent. consolidated stock already created and issued, and redeemable at par on the Ist November, 1929. Applications for conversion will be received up to 30th April next, inclusive. The interest upon the new debentures will be payable by coupons in the same manner as upon the consol debentures, viz., 15th January, 15th April, 15th July, and 15th October, at the Bank of England, the first coupon being for the dividend due 15th July next. Consol debentures, from which the coupon due 15th April next must be detached, may be deposited at tho Chief Cashier's Office, Bank of England, for exchange on or after Wednesday next, tho 11th instant. They must bear all coupons subsequent to that due 15th April next, and must bo left three clear days for examination. Receipts will bo given for the debentures deposited, and the new debentures will ho issued in exchange as soon after as possible. The usual annual drawing for redemption of the consols will take place on Tuesday, 31st March next; debentures deposited before that dato will not bo affected by the drawing. Holders of consol debentures drawn for redemption, in respect of which no application for conversion has boon made, will bo allowed to receive, in exchange for each drawn debenture, a now debenture as above, upon payment of the sum of £4 per cent., provided application bo made bofore tho 15th April next. By tho Act 40 and 41 Vict., c. 59, tho rovenues of the Colony of New Zealand alone will be liable in respect of the stock and the dividends thereon, and the Consolidated Fund of tho United Kingdom, and the Commissioners of Her Majesty's Treasury, will not be directly or indirectly liable or responsible for tho payment of tho stock or of the dividends thereon, or for any matter relating thereto. Bank of England, 6th March, 1885.

Enclosure 3 in No. 1. , c. Memobandum. It should be noted that bankers and brokers will receive a commission of J per cent, on the face value of all bonds sent in by them to the Bank of England for conversion. P. D. Bell, 7, Westminster Chambers, 28th March, 1885. Agent-General.

Enclosure 4 in No. 1. D. New Zealand Government Office, Sir,— 7, Westminster Chambers, London, SiW., 21st April, 1885. Adverting to the notice "which has been inserted in the Times and other newspapers since the 7th March last, containing particulars of a proposal for the conversion of the New Zealand 5-per-cent. consols, I beg to remind yon that the 30th instant is the last day on which applications for conversion can be received at the Bank of England. Prom many inquiries that have been made, it appears that in some cases holders have been in doubt as to what series of New Zealand Government bonds this notice applies, I may therefore state that all New Zealand Government bonds on which interest is payable quarterly are 5-pcr-cent. consols, and can be converted as proposed. I am, &c, P. D. Bell, Agent-General.

No. 2. The Loan and Stock Agents to the Colonial Teeasoeee. Sic, — 7, Westminster Chambers, London, S.W., 4th May, 1885. We have the honour to acquaint you that the consols conversion has now been closed, and that the total amount of bonds sent in for conversion is £3,655,100. On the evening of the 30th April the total was £3,642,100, and we sent you a telegram accordingly, which, we were glad to find, from your message in reply, was satisfactory to the Government. The Bank of England, however, received some further bonds by post on the Ist instant, and also admitted a few bonds under special circumstances, according to the discretion we left to them. By an early mail we shall transmit you a statement of the respective denominations of all the bonds sent in. The first sets of the new bonds are being completed for delivery to the Bank of England after stamping. We are now in communication with the Commissioners of Inland Eevenue as to the stamp duty, and their solicitor is willing to allow the new bonds to be impressed with a sixpenny stamp, as they are only in substitution for outstanding debentures of a longer currency; and we have made the necessary arrangements with the Bank of England for the payment of the duty. Copy of the telegram we sent you is annexed. We have, &c, P. G. JULYAN, F. D. Bell, The Hon. the Colonial Treasurer, Wellington. Loan and Stock Agents. Copies of Telegrams referred to in No. 2. The Aqent-Genebal to the Colonial Treasures. Treasurer, New Zealand. London, 30th. Consolidated Loan, 1867. Conversion. Total amount converted, £3,642,100.

No. 3. The Agent-Geneeal to the Colonial Tbeasukee. Sic, — 7, Westminster Chambers, London, S.W., 21st May, 1885. Adverting to the Actuaries' calculations respecting the consols conversion, which were enclosed in my letter of the 26th March last (No. 377), I now transmit herewith a further computation now made by them showing the financial result to the colony of the operation as it has been actually made.