25

8.—17

We are still waiting the decision of the Imperial Treasury respecting the guaranteed loan of 1856 : but the disturbance of ordinary business in all Government departments, caused by the general election, has no doubt been the cause of the delay. With regard to proceeding with a further conversion of the consols of 1867, we expressed our opinion so fully in our letter above quoted, that there is not much more we can say just now. But we are engaged in considering a number of questions, including one as to the 10-40 bonds, so that we may, before the year closes, submit exact proposals to you, with special ciphers which you might find useful; and if you should meanwhile have sanctioned (as we may perhaps hope to hear by telegram) the general lines of our letter of the 7th October, we should announce the operation for February, arrange the consols drawing for the first days of March, and fix the last day for converting about the 20th, so as to let the results be brought, as you desire, within the accounts of your financial year. We have, &c, P. G. Julyan, F. D. Bell, The Hon. the Colonial Treasurer, Wellington. Loan and Stock Agents

No. 39. The Colonial Tbeasubeb to the Loan and Stock Agents. Loan Agents, London. Waiwera, 22nd January. Conversion Consolidated Loan, 1867. My letter first December replying to yours seventh October leaves you full liberty action. Cable when notice issued, dates operations, terms.

No. 40. The Agent-Geneeal to the Colonial Teeasubee. Treasurer, New Zealand. (Eeceived, 24th January.) ■Conversion. Tour despatch first December ample. Loan Agents only waiting ciphers. Sent their letter December eighteenth, "Tongariro." London, 23rd.

No. 41. The Loan and Stock Agents to the Colonial Tbeasubeb. Treasurer, New Zealand. (Eeceived, 27th January.) Conversion. Preceding general announcement, propose giving immediate notice pay off 4-J-per-cent. 5-30s first August, giving option holders receive hundred and one inscribed stock instead of cash ; we could readily provide for any bonds that were not exchanged. Please answer immediately, because notice must appear Gazette Friday. Loan Agents. London, 24th.

No. 42. The Colonial Teeasueee to the Loan and Stock Agents. Loan Agents, London. Waiwera, 27th January. Foub-and-a-half-pee-cent. 5-30s. —Not time ask your opinion about negotiation loan required next year, so will explain position leaving you judge if safe give notice proposed. Reluctant negotiate North Island Trunk April—prefer borrow on short-dated debentures until Parliament authorize new loan, which we should negotiate soon after August to probable extent million and a half. By early meeting and action Parliament, might get new loan authority home by early August, but uncertain. Under these conditions leave you discretion give notice if you think advisable.

No. 43. The Loan and Stock Agents to the Colonial Teeasueee. Treasurer, New Zealand. (Eeceived, 29th January.) Foub-and-a-half-peb-cent. 5-30s.—After most careful reflection upon your telegram have decided upon issuing notice. Will telegraph more fully to-morrow. Loan Agents. London, 28th.

No. 44. The Loan and Stock Agents to the Colonial Treasurer. Treasurer, Waiwera. (Eeceived 30th January.) Four-and-a-hale-pee-cent. 5-30s.— Notice pay off published to-night. Bank of England announces holders desiring exchange into inscribed stock instead of receiving their money August will have hundred and one inscribed stock for every hundred debentures, provided they surrender their bonds before March thirtieth. Inscription favorably received. Loan Agents. London, 29th. 4—B. 17.