3

8.—15b

would be shipped to the order of the bank and the Audit Officer in London of the Agent-General's Office for delivery to the bank alone on the surrender of the matured debentures to be redeemed ■Which are held there. The matured debentures to be redeemed which are held in Wellington for £375,000 would be surrendered to the Treasury at once, together with the debentures already redeemed by the application of the moneys applicable by statute for their redemption, £880,285 6s. 9d., or £1,255,285 6s. 9d. in all. 12th April, 1904. J. K. Waeburton, C. & A.-General. No. 5. Sir,— Bank of New Zealand, Head Office, Wellington, 13th April, 1904. " Bank of New Zealand Act, 1903 " : New Assets Realisation Board Debentures. Referring to the Chief Auditor's letter to you of the 12th April on the above subject, I note from your indorsement thereon that you desire that the Assets Board and the Bank may, each by its responsible officer, confirm such of the facts of the statements certified to by Mr. Macintosh as are known to both. Under the circumstances, doubtless you will be satisfied with this joint certificate that the facts set out in the said letter of the Chief Auditor are known by either the one or the other of us to be correct, those affecting more particularly the questions relating to the Assets Board being certified to by the General Manager of that Board, and those affecting the Bank of New Zealand by the General Manager for the time being of the Bank of New Zealand. We have, &c, Walter Foster, General Manager, Assets Eealisation Board. Alex. Michie, P. General Manager, Bank of New Zealand. The Controller and Auditor-General, Wellington.

No. 6. The Treasury. Audit Office, 12th April, 1904. The Controller and Auditor-General, before he can countersign the debentures of the Assets Board, which "The Bank of New Zealand Act, 1903" authorises the Board to create and issue, requires evidence of the appointment of the persons as members whose appointment constitutes the Assets Board ; and the Treasury will oblige by letting Mr. P. P. Webb, Chief Audit Inspector, see such evidence, and also the evidence of what was done on the recjeipt by the Colonial Treasurer of the valuation as at the Ist January last, with which he was furnished by Mr. Macintosh as Chief Auditor, of the properties vested in the Assets Board. J. K. Warburton, C. & A.-General.

(Urgent.) No. 7. The Hon. the Colonial Treasurer. Audit Office, 13th April, 1904. " The Bank of New Zealand Act, 1903," provides that the debentures which that Act authorises the Assets Eealisation Board to create and issue shall be countersigned by the Controller and Auditor-General. But he feels that he ought, before he countersigns such debentures, to be perfectly satisfied, either by the long process of an audit by himself of the accounts of the Assets Board, or by the certificate of the Chief Auditor, that the facts are such as to justify the countersignature. Mr. Macintosh, the person who was last appointed Chief Auditor, having since his appointment to that office become the Bank's General Manager, whose accounts and the accounts of the Assets Board are to be audited by such Chief Auditor, the certificate which he furnishes in his letter of yesterday is not perfectly satisfactory, though it is such a certificate as, if he had not taken office in the Bank's administration, might have been accepted as sufficient. The Bank and the Assets Board, each by its responsible officer, confirm what Mr. Macintosh certifies; and this evidence, though it is not perfectly satisfactory, appears to be the best that can be obtained respecting the facts, except by the long process of an audit. As the debentures on being countersigned and issued become guaranteed by the colony, the Controller and Auditor-General is not disposed to certify them on any but perfectly satisfactory evidence without first submitting the matter for the consideration of the Government. If the Government considers that effect should be given forthwith to the provisions of subsections (b) and (c) of section 24 of the Act, and is prepared to take the responsibility of the issue, and the evidence is supplied for which application was made to the Minister yesterday, the Controller and AuditorGeneral would in that case countersign them, and report the matter in ordinary course to Parliament. A copy of the correspondence is appended. J. K. Wahburton, C. & A.-General.