8.—17

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No. 45. The Colonial Tebasueee to the Loan and Stock Agents. Gentlemen, — Waiwera, 29th January, 1886. I have the honour to acknowledge the receipt of the further cablegrams at foot. When your cablegram arrived informing me of your desire to gazette the notice on the coming Friday, I had not time even to consult my colleagues, and I therefore determined to lay before you the position and leave you to judge if, with our wants during the financial year ensuing, you thought it prudent to give the notice of redeeming the four-and-a-half five-thirties. Now that you have determined on giving the notice it seems to me of great importance to enable you, if possible, to raise the new loan at the same time that ycu raise whatever maybe required to pay off the five-thirties. Supposing much is not required the two will go off well together. Possibly it is in your minds to raise the necessary cash earlier than August, but I think you will agree with me that the one operation is desirable ; and, if so, it may be necessary to hasten the meeting of Parliament On the other hand, August may not be a favourable month, and you may think it better to defer the loan until October, making temporary arrangements for the payments required early in August. I shall, of course, leave you to select the times of operating, but I am sure you will agree with me it is very undesirable, if it can be avoided, to defer borrowing money until the moment it is required. The urgency of immediate wants becomes known and advantage is taken of it. It is probable I may have to cable you on the' subject as far as it relates to the meeting of Parliament before you receive this. I have, &c, The Loan Agents, London. Julius Vogee. Copies of telegrams referred to in No. 45. Treasurer, New Zealand. (Eeceived 30th January.) Foub-and-a-Half-peb-cent. 5-30s : After most careful reflection on your telegram have decided upon issuing notice. Will telegraph more fully to-morrow. Loan Agents. London, 28th. Treasurer, Waiwera. (Eeceived 30th January.) Foub-and-a-half-peb-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 favourably received. Loan Agents. London, 29fch.

No. 46. The Colonial Teeasuebe to the Loan and Stock Agents. Loan Agents, London. Waiwera, 2nd February. Foub-and-a-half-pee-cent. 5-30s.—When do you propose raise money found necessary after end option March ? Would it not be well raise it and new loan together; and in that case, by what date ought authority raise new loan reach you ?

No. 47. The Loan and Stock Agents to the Colonial Teeasuebe. Treasurer, Waiwera. (Eeceived, 3rd February.) Foue-and-a-half-peb-cent. 5-305.-—Must await expiry option when know how much converted ; shall thereupon consult you whether raise amount or arrange syndicate take firm ; shall most likely advise latter course. Secondly, new loan ; owing to time elapse before Act passed authority would not arrive before date you named, when impossible offer any new loan because people dispersed holidays ; therefore we think October earliest month safe, so that authority would arrive ample time; this only applies new loan, not North Island million, supposing you decide upon raising before Parliament meet. Loan Agents. London, 2nd.

No. 48. The Loan and Stock Agents to the Colonial Teeasubeb. Sic, — 7, Westminster Chambers, London, S.W., 15th December, 1885. Adverting to the negotiations which you directed us to undertake with the trustees of the Imperial Guaranteed Loan of 1856, in order to the colony being relieved if possible from further contributions to the accumulated sinking fund of that loan beyond what might be required to make up any deficiency of interest that might exist in the yield of the investments of the fund, we have now to transmit to you copy of a letter from Sir W. C. Sargeaunt, K.C.M.G., one of the trustees, signifying the assent of the Lords Commissioners of Her Majesty's Treasury to the proposal as sent in by the Agent-General on the 21st October. We have, &c, P. G. Julyan, F. D. Bell, The Hon. the Colonial Treasurer, Wellington. Loan and Stock Agents.

Enclosure in No. 48. Sib, — Downing Street, London, 11th December, 1885. Having brought under the consideration of the Lords Commissioners of the Treasury the proposal contained in your letter of the 20th October last, as regards relieving the Government of New Zealand from further contribution on account of the interest of the £500,000 Guaranteed Loan of 1856, I have the honour to inform you that their