3

8.—17

I gather that an Imperial Act is considered necessary to authorise the Government to take back from the Bank of England or the Crown Agents, as the case may be, any interest or dividends which have not been claimed during a certain period, to be fixed by statute. Eegarding claims which might come in after the funds had been withdrawn, I think these could best be decided upon by the Bank or the Crown Agents. If this view be concurred in, it might be provided that the Government should give a satisfactory guarantee to the payers of interest— i.e., the Bank or Crown Agents, as the case may be—that they would be put in funds to liquidate any claims for overdue interest proved to their satisfaction. As to the period for which interest should lie in the hands of agents for payment, whether it should be seven or ten years, I think precedent should be followed. The withdrawal of past-due interest suggests the further question whether the Government ought not to be relieved of the duty of making future provision for interest on the stock or debentures the interest on which has not been claimed—remaining, however, subject to liability as in the case of withdrawals. The question of advertising also requires consideration ; but I presume the proposed measure would deal with this. I have, &c, The Agent-General for New Zealand, London. Julius Voghl.

No. 7. The Aoent-Gbnebal to the Colonial Tbeasureb. Sir, — 7, Westminster Chambers, London, S.W., 6th September, 1887. Adverting to your letter of the 17th June, No. 13, on the subject of unclaimed stock and dividends, you will have seen that I brought the matter before the Colonial Conference. I now beg to enclose copy of a letter I have received from the Colonial Office, covering a correspondence with the Bank of England as to the form that the proposed Bill should take. I shall shortly consult with the other Agents-General, as requested by the Colonial Office, and acquaint you with the result. I have, &c, The' Son. the Colonial Treasurer, Wellington. F. D. Bell.

Enclosures in No. 7. A. —The Colonial Office to the Bank of England. Sm, — Downing Street, 19th August, 1887. I am directed by Sir Henry Holland to transmit to you the accompanying copy of a paper laid before the Colonial Conference by the Agent-General for New Zealand, Sir P. Dillon Bell, on the subject of unclaimed dividends on colonial loans. The Conference agreed that it is desirable to take such action as may be necessary to enable the colonial Governments to deal with unclaimed dividends; and it appears to Sir H. Holland that an Act of the Imperial Parliament, such as Sir P. D. Bell suggests, would relieve the bank or other agents resident in this country from responsibility to the stockholder in paying over unclaimed dividends to the colonial Government. Such an Act would not, of course, affect the liability of the colonial Government towards the bondholder or stockholder; but it appears to Sir H. Holland that in practice no difficulty would arise if legislative provision were made by colonial Governments for enabling claimants here readily to obtain repayment of arrears of dividends. Parliament would probably require some such provision to bo made, but the form of it would require consideration. The debentures or stock in respect of which unclaimed dividends had been repaid to the colonial Government might, as Sir P. D. Bell suggests, bo transferred in trust to some representative of the colony here; but Sir H. Holland is not satisfied that there is necessity for such an arrangement. Sir H. Holland would be glad to be favoured with the opinion of the Bank of England whether there are any practical obstacles in the way of carrying out Sir P. Dillon Bell's suggestions, and with any observations on the subject generally. 1 am, &c, The Governor, Bank of England. R. H. Mbadb.

B. —The Bank oE England to the Colonial Office. Sib,— Bank of England, E.C., 26th August, 1867. In continuation of my letter of the 23rd instant I am directed by the Governors to inform you, in answer to the first part of Sir H. Holland's inquiry, that they see no practical obstacles in the way of carrying out any method of dealing with unclaimed colonial stock and dividends which shall receive the sanction of an Imperial Act of Parliament supplementary to " The Colonial Stock Act, 1877." In answer to the further request for any observations on the subject generally, the governors would recommend that any such enactment should be framed on the analogy supplied by the Acts which already govern the disposition of unclaimed stock and dividends of the debts of the United Kingdom and the Indian Government, and of the Metropolitan Board of Works. If this suggestion commends itself to Sir Henry Holland, then the principal provisions to be enacted would be that all colonial Governments be empowered to give instructions to the banks or firms with whom their loans are registered to transfer and pay over stock and dividends unclaimed for a period of ten years ; and that the rights of the persons entitled shall in no way be affected by such transfer and payment, and that they shall be free to apply for the restoration of their stock and dividends, with the right of appeal to the Chancery Division of the High Court of Justice in the case of a disputed application. The fixing of ten as the number of years appears to be preferable to any other term, being in harmony with the National Debt, Indian, and Metropolitan. Board of Works Acts, and has been found in practice to work satisfactorily. With reference to the disposition of the unclaimed stock and dividends, it appears to the governors that the transfer of them to a trust in this country, to be held for the benefit of the persons entitled, would be'the course most consonant with the original contract between the colonial Government and the lenders. It is, of course, competent for Parliament to vary the terms of any contract; but some such method as that proposed by Sir P. D. Bell in the concluding paragraph of his minute would be open to less objection on the part of a stockholder than the actual surrender of his property (although he has for a time failed to claim it) to a distant Government which is his debtor; and, if this be admitted, the second provision would direct tli9 creation of such a trust, and in it would be embodied the necessary details therewith connected. Among the subsidiary provisions would be directions for the investment or employment of the unclaimed dividends and of the accruing dividends upon stock transferred, reserving to the colonial Government the income arising from such investments. A further provision would direct claimants to apply to the bank or firm who are the registrars of the loan for restoration of the stock or dividends to which they consider themselves entitled. Access to registers of unclaimed stock and dividends is no longer permitted, as in practice it has been found to be dangerous and useless—dangerous to the bank, as giving publicity to information which might be used for fraudulent purposes, and useless to bond fide claimants who did not know how to use the registers. The only persons. who profited were the publishers of lists of unclaimed property, who misused the information they obtained. The bank are always ready to make searches on application ; they send notices within a year to persons who have sold