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In conclusion, I desire to point out that an erroneous impression has been disseminated that legislation is in some way necessary to free the bank from the Estates Company Except as a condition of amalgamation made by the Colonial Bank there is no such necessity It is already a separate company, and separately administered, though to a large extent under bank control. As to its being a burden on the bank, it is only so in the sense of being a burden on bank shareholders, which it must of necessity remain till it be liquidated, unless the colony were to relieve them, which nobody proposes. I have, &c, The Hon. the Colonial Treasurer, Wellington. John Mueeay.

Sir, — Dunedin, 24th September, 1894. I have the honour to acknowledge the receipt of your letter of 22nd September, and have submitted the contents to my colleagues here. In reply I am desired to state that the conditions imposed by you make the scheme such as we could not recommend to our shareholders. Taking the clauses of your letter seriatim, — 1. We do not object to the permissive character of the proposed legislation. 2. We have not the slightest objection to your appointing representatives to examine the condition of our accounts and assets, and refer you to our letter of the 20th July When applying for a share of the Government account we specially asked the Government to do this before giving us that share. 3. This stipulation is all right, and was fully provided for in the agreement so far as the scrutiny by the other bank was concerned. We have no objection to its application to the suggested further scrutiny. 4. This so vitally affects the interests of our shareholders that we will not under any circumstances agree to propose it to them it would be an invitation to spread the realisation of the Assets Company over an indefinite period, and would make our shareholders' dividends responsible beyond what can fairly be asked or was ever intended. This bank will have no voice in the management or realisation of the assets. Begarding the Government lien on the interests of the present shareholders of the Bank of New Zealand we can raise no objection. 5. This does not immediately concern us. 6. The powers possessed by the Government under the scheme submitted and under clause 2 above—namely, a president with a power of veto, an auditor, and a peliminary scrutiny of assets and accounts to be made by a Government representative, on whose report the acceptance by the Government of the whole scheme will depend—must be held to be sufficient. It is obvious that the presence of a nominee of the Government on the Board would detrimentally affect the business of the bank. Final clause The assent to amalgamation on the part of the Colonial Bank would greatly depend upon the shareholders being represented in the amalgamated institution by men in whom they had confidence. Without this guarantee there would be little prospect of obtaining the necessary consent. The attitude which the directors at the general meeting on Wednesday must take up with regard to the proposed amalgamation will evidently so largely depend upon the answer which we receive to this, that I must ask you to reply as definitely as possible on the whole affair not later than noon to-morrow I have, &c, The Hon. the Colonial Treasurer, Wellington. Geo. McLean

Sir,— Wellington, 24th September, 1894. The Government have carefully considered your communication of to-day, and, in reply, I have the honour to inform you that they cannot see their way to depart from the conditions named in my letter of the 22nd instant. I have, &c, J G Ward, J Murray, Esq., Wellington. Colonial Treasurer

Sir, — Wellington, 24th September, 1894. The Government have carefully considered your communication of to-day, and, in reply, I have the honour to inform you that they cannot see their way to depart from the conditions named in my letter of the 22nd instant. I have, &c, J G Ward, The Hon. G. McLean, Dunedin. Colonial Treasurer

English. — For Senior Civil Service. Time allowed 3 hours Part 2.—Literature and Books. 1. What reasons did Cassius give for wishing to engage Brutus in his conspiracy? Opon what points was Cassius afterwards overruled by Brutus, and with what effect upon the fortunes of the conspirators ? 2. On what occasions, and with what object, does Shakespeare introduce anything of a supernatural character before the death of Julius Caesar ? 3. Explain the following passages : — (a.) Swear priests, and cowards, and men cautelous, Old feeble carrions, and such suffering souls That welcome wrongs, unto bad causes swear Such creatures as men doubt; but do not stain The even virtue of our enterprise, Nor the insuppressive mettle of our spirits, To think that or our cause or our performance Did need an oath.