19

8.—17

Now, therefore, His Excellency the Governor of the Colony of New Zealand, in pursuance and exercise of the power and authority vested in him by the hereinbefore in part recited Act, and by and with the advice and consent of the Executive Council of the said colony, doth hereby authorize the Colonial Treasurer to create debentures to the amount of two hundred and fifty-two thousand two hundred and twenty-one pounds four shillings and eight pence for the purposes in the manner with the powers and upon and subject to the terms and conditions in the hereinbefore in part recited Act particularly mentioned. Foster Goeing, Clerk of the Executive Council.

No. 27. The Colonial Teeasueee to the Loan and Stock Agents. Gentlemen, — Treasury, Wellington, 10th October, 1835. I have the honour to acknowledge receipt of your telegram—a copy of which is at foot— in reply to mine on the subject of fresh conversion operations. I am glad to find that you think you can arrange for placing tho 1856 loan in a position that will enable the interest to be paid out of the amount in full of the loan which has already accrued, and save the colony the unnecessary payments for the period over which the loan has still to run. I notice what you say about the consolidated loan of 1867. You will be best able to judge as to the time to renew the operations. lam surprised at your considering it hopeless to reduce the currency of the debentures you will offer. The average life of the bonds has diminished, or in other words the risks of drawing bonds for payment at par have materially increased since last year; so that in giving the same terms as on the last occasion you will be putting those coming in afresh on better terms than those who came in last year. It, however, occurs to me that we may mean the same thing. You may mean the debentures to fall in for conversion at the same date as those of last year, whilst I am speaking of the currency from the date of issue. I am not surprised at your opinion that it would be inexpedient to give notice at present for paying off the 4J-per-eent. 5-30 debentures. When suggesting the matter I thought that would be the conclusion you would arrive at. I am glad you approve the proposal to buy any of the old provincial loans you are able to obtain. I notice that you do not refer to the very important conversion I propose under the 1863 loan. Doubtless you are still keeping this matter in your consideration. I have, &c, The New Zealand Loan and Stock Agents, London. Julius Vogel.

Copy of Telegram referred to in No. 27. The Loan and Stock Agents to tho Colonial Treasurer. Treasurer, New Zealand. (Received Ist October, 1885.) Loan of 1856: perhaps can arrange. Consolidated loan, 1867 : concur conversion desirable, but too short time elapsed since operation : advise waiting February, when drawing will help ; our opinion is, however, hopeless reduce currency debentures. Pour-and-a-half-per-cent. 5-30s : We think unsafe give notice at present. Old provincial loans : Consider desirable convert occasion offers. London, 30th. Loan Agents.

No. 28. Wm. P. Deummond Jebvois, Governor. OEDEE IN COUNCIL. At the Government; Buildings, at Wellington, this thirteenth day of October, 1885. Present: The Honoubable the Pbemiee Peesiding in Council. Wheeeas by an Act of the General Assembly of the Colony of New Zealand, the Short Title whereof is " The Consolidated Stock Act, 1884" (hereinafter referred to as "the said Act "), it is, among other things, enacted that so much ;of all the loans set forth in the Schedule to the said Act as were outstanding on the thirty-first day of March, one thousand eight hundred and eighty-four, should be and were thereby declared to be convertible into stock ; and by the said Act it is further provided that, pending the operations for converting loans and creating the stock authorized to be created .under the provisions of the said Act and " The New Zealand Consolidated Stock Act, 1877," the Colonial Treasurer may, when so authorized by an Order in Council in that behalf, create debentures to an amount not exceeding in the whole the amount of such stock, and may borrow and raise moneys from time to time by the sale, hypothecation, or mortgage of such debentures, or may exchange the same for securities convertible under the said Act, as the Colonial Treasurer thinks fit; and that every such debenture shall bear interest at such rate not exceeding five pounds per centum per annum, and shall be in such form and shall have a currency not exceeding seven years, as the Colonial Treasurer directs : And whereas it is expedient that the power to authorize the creation of debentures under the said Act should be exercised in the manner hereinafter set forth: Now, therefore, His Excellency the Governor of the Colony of New Zealand, in pursuance and exercise of the power and authority vested in him by the said Act, and by and with the advice and consent of the Executive Council of the said colony, doth hereby authorize the Colonial Treasurer to create debentures to the total amount of fifty-six thousand two hundred pounds for the purpose of exchanging the same for debentures convertible into consolidated stock—that is to say, six thousand two hundred pounds of the said total amount being for debentures issued under " The General Purposes Loan Act, 1873," and fifty thousand pounds of the said total amount being for debentures issued under " The Defence and other Purposes Loan Act, 1870," all which debentures are securities of the loans raised under the Acts set forth in the Schedule to the said Act and outstanding on the thirty-first day of March, one thousand eight hundred and eighty-four. Foesteb Gobing. erk of the Executive Council.