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On the 13th and 27th instant respectively the £200 and £100 debentures of the loan of 1860, handed to me by the Union Bank of Australia under standing instructions, were sent in to the Bank of England for conversion into stock in the names of the Audit Officer and myself. On the 21st instant the Crown Agents paid off £100 more of the March series of the loan of 1863. I enclose copy of correspondence with the Crown Agents relating to the sinking fund of the loan of 1863. I have, &c, The Hon. the Premier, Wellington. Waltee Kennaway.

Enclosure 1 in No. 35. Sic,— Downing Street, 28th October, 1891. Referring to your letter dated the 14th ultimo, requesting us to instruct our brokers to effect sales from account to account of all the remaining 4-per-cent. New Zealand inscribed stock in the 1891 sinking fund, in preparation for the final release on the maturity of the debentures in that fund on the 15th December next, I have to inform you that we have been in communication with Messrs. J. and A. Scriingeour on the subject, and transmit a copy of a letter from them, dated the 17th instant, recommending sales to be made, if possible, forthwith, having regard to the amount to be sold. We shall bo glad to learn whether, as the money to pay off the debentures as they are presented will, in the first instance, be provided by you, on our requisition, it will be necessary to complete the sale of the whole of the £90,868 13s. lid. 4-per-cent. stock now held in the Sinking Fund by the 15th of December next; and, if not, what will be the latest date on which the whole of the money must be available. I have to request that you will sign and return here the enclosed request to the Bank of England to transmit dividend warrants by post to me on £337,193 ;2s. Id .New Zealand 4-per-cent. inscribed stock belonging to sinking funds 1914 and 1915, recently transferred from the names of Sir P. G. Julyan and Sir F. D. Bell into the names of Sir P. G. Julyan and yourself. I am, &c, Walter Kennaway, Esq., C.M.G., Trustee of New Zealand Sinking Fund, 1863. M. F. Ommanney. Sub-enclosure. Gentlemen,— 18, Old Broad Street, E.C.,l7th October, 1891. In reply to your favour of the 16th instant, we have to advise that, in sympathy with other stocks of the same class, the market in New Zealand 4-per-cent. stock is very dead at the present time ; neither do we see any immediate prospect of a rise. Considering your wish to dispose of £90,868135. lid. stock before the middle of December next, we are of opinion that it would certainly be advisable to effect sales, if possible, forthwith in any reasonable amounts at the current market price ; but we are not very sanguine of being able to do business at the moment, the market being so lifeless. The present price of the stock is We are, &c, The Crown Agents for the Colonies, Downing Street. J. and A, Scbimgeoub.

Enclosure 2 in No. 35. Gentlemen, — 13, Victoria Street, 30th October, 1891. I beg to acknowledge the receipt of your letter of the 28th instant, enclosing copy of letter from Messrs. Scrimgeour of the 17th instant, relating to the sale of the remaining 4-per-cent. stock in the 1891 sinking fund. I gather from Messrs. Sorimgeour's letter that no sale of the stock has as yet been effected; and, in reference thereto, I desire to state that, the circumstances of the ease not having altered since the date of Sir F. D. Bell's letter of the 14th September, the request contained therein still holds good, and it is therefore necessary to proceed at once, so far as possible, with the realisation of the stock in question. With regard to your inquiry whether it will be necessary to complete the sale of the whole of the £90,868 13s. lid. 4-per-cent. stock by the 15th December next, I beg to state that, as within a short time after that date the New Zealand Government will probably be in a position to require the Trustees to release the greater portion, if not all, of the remaining 1891 fund, it will bo expedient that the stock in question should be realised, if possible, before the end of the year. With reference to the collection of the dividend due on the Ist proximo on the 4-per-cent. stock (£337,193 2s. Id.), it will not now be necessary to send in the request to the Bank of England enclosed in your letter, as, in accordance with the arrangements I made with Sir M. F. Ommanney yesterday, I propose to personally collect the amount of the dividend in question. I have, &c, Walter Kennaway, Executive Trustee of the Sinking Fund of the Loan of 1863. The Crown Agents for the Colonies, Downing Street.

No. 36. The Agent-Geneeal to the Peemiee. (No. 1717). Westminster Chambers, 13, Victoria Street, London, S.W., Sic,— t 27th November, 1891. No alteration has taken place in the figures of the conversion since I last wrote, on the 30th October (No. 1619), and the total remains as I stated it to be at that date—namely, £257,400. On the 3rd and 21st instant the Crown Agents paid off £200 and £100 respectively of the June series of the loan of 1863. The following are the amounts still outstanding of the undermentioned loans after deducting those converted, those paid off through the Crown Agents, and the £9,500 of the December series of the 1863 loan which I hold, and which I shall now send in for conversion :— 6-per-cent., 1863 — £ March series ... ... .... ... ... ... 1,400 June series... ... ... ... ... ... ... 700 December series ... ... ... ... ... ... 59,900 6-per-cent., 1860 ... ... ... ... ... ... -200 On the 19th instant the Bank of England was repaid, by means of a Commissioners' order on the Public Account, the sum of £2,000, being the amount of the two advances of £1,000 each made to the Stock Agents on the 17th September and sth instant respectively. Equivalent amount in value of 3J-per-cent. stock will in due course be inscribed in the names of the Agent-General and Audit Officer.