5

8.—13b

and converting all New Zealand loans, spreading over very many years, I certainly owe it to your Government to continue to devote my best energies to their interests, so long as health permits and they are pleased to consider my services of any value. I am given to understand by the AgentGeneral that you are about to visit England, and that you thought it desirable that borrowing operations should be deferred until your arrival in London. So far as one can judge from the present state of the money market, the suggested delay will be advantageous rather than otherwise, and, within reasonable limits, the longer operations are delayed the better. A short time ago Australasian securities (which are more or less coupled by English investors with those of New Zealand) were not looked upon on the Stock Exchange with favour ; and, although there has been some slight reaction of late, confidence is still far from being fully restored, and, in spite of the abundance and cheapness of money, further delay seems desirable. I have, &c, The Hon. the Treasurer of New Zealand. P. G. Julyan.

No. 17. The Minister acting for the Colonial Treasurer to the Agent-General. Agent-General, London. Wellington, 6th April, 1895. Government Advances to Settlers Act.—Government authorise Loan Agents arrange issue of £1,500,000 soon as possible. Consult and act with Colonial Treasurer.

No. 18. The Minister acting for the Colonial Treasurer to the Agent-General. (No. 13.) Sir— 18th April, 1895. • With reference to the disposal of the proceeds of the new loan, I desire to point out that it will be necessary to open a separate account at the Bank of New Zealand, to be called "The Government Advances to Settlers Office Account," into which the moneys arising out of the inscription of the new loan are to be paid. (See section 46 of the Act.) In order to avoid as far as possible the necessity of either drawing on the separate account or of having the moneys remitted from London to the colony, it has been arranged with the Audit Office that, as occasion requires, the Superintendent shall join with the Controller in a telegram, either direct to the bank in London or through the Wellington office, requiring the bank to pay over to the New Zealand Public Account such sums as might be named in the telegram, and at the same time a like amount would be paid over to the Advances to Settlers Office Account in Wellington from the Public Account here. By this process two purposes will have been served : (1) Providing funds in the colony for grants under the Act; (2) providing funds at your end to replenish the New Zealand Public Account. I would further suggest for consideration of the bank authorities, with the object of lessening the expense of the cable messages, that the amount to be withdrawn might be expressed by our code numerals, which you would be able to interpret upon receipt of the words from the bank. Be good enough to inform me by cable when you have arranged with the bank to carry out these suggestions. I have, &c, B. J. Seddon, The Agent-General for New Zealand, London. For the Colonial Treasurer.

No. 19. The Hon. Mr. Ward to the Minister acting for the Colonial Treasurer. Colonial Treasurer, Wellington. (Beceived 28th April, 1895.) In fifteen minutes after announcement Stock Exchange to-day quotations advanced to 93 Prospects excellent. Ward. London, 27th.

No. 20. The Minister acting for the Colonial Treasurer to the Hon. Mr. Ward. Ward, London. Wellington, 28th April, 1895. Congratulations that the loan announcement is well received. Convey my congratulations to the Loan Agents. Immediate premium of three very satisfactory; average price should reach 92, which should be splendid result. Seddon.

No. 21. The Minister acting for the Colonial Treasurer to the Agent-General. Agent-General, London. 30th April, 1895. Proceeds new loan must be kept separate, see section 46 (Advances to Settlers Act); and, in order to avoid remittances, Superintendent and Controller and Auditor-General will cable express authority to Bank of New Zealand to transfer to Public Account advances from time to time as required by Superintendent, whereupon like sums may be paid over from Public Account to Advances to Settlers