8.—19.

In consideration of this concession, I notice that you have agreed, on behalf of the Government, to provide that there shall be held by the Bank at the time a sufficient amount of guaranteed debentures to cover the whole of the amount payable. I regret you were unable to persuade the Bank to include as " negotiable securities " the drafts from the colony which the Bank have so far discounted without demur, and I shall feel obliged if you will again approach the Bank with the view of their reconsideration of the matter, as it seems to me that, if the drafts are considered good enough by the Bank to be discounted, they are surely of sufficient value to be held as cover for the two days intervening before payment has to be made by the Bank. Of course, in the matter of a delicate negotiation such as this, I desire to be guided by your opinion, and therefore, if you do not consider it advisable, or, the time opportune, for you to again approach the Bank on the subject I shall be satisfied with your decision, but I reserve the right to ask you to reopen negotiations at any future time. I have, &c, The Agent-General for New Zealand, London. J. Ballance. Approximate Cost of Paper— Preparation, nil; printing (1,300 copies), £2 10s.

Authority: Geoege Didsbuby, Government Printer, Wellington.—lB92,

Price 3d.]

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