UN NEGOTIATED BALANCES OF UNGUARANTEED DEBENTURES.

Evening Star, Issue 4171, 10 July 1876, Page 2

UN NEGOTIATED BALANCES OF UNGUARANTEED DEBENTURES.

The following is a precis of correspondence regarding the uuraised balances proposed to be realised by the Government:— Wellington, August 27, 1875. Dr Pollen to Sir J. Vrgel states the amount to bo two millions, and asks ** Should Rothschild take them, Shall pot -want more % two years.”

London, September 30, 1875, J, Vogel’s reply, expressing doubt w

to making an arrangement \rith Rothschilds, nmks it feasible to arrange forTialf a mmion advance on security unguaranteed in addition to borrowing on guaranteed debentures.

Wellington, September 30, 1875. Dr Pollen states the details of unsold balances are in the financial statement. He wishes Sir Julius to sell one million and leave guarantee untouched, in three instalments, the first on March last and remainder at intervals of three months.

Lonpon, October 18, 1875. J. Vogel to Rothschild, expressing wish to place on record the substance of what passed on the subject, 1. That when negotiating loan in early part of year. Sir Julius though declining to give assurance that no further loan would be needed during 1875 and 1876, would endeavor not to issue fresh loans during that period, but explained that LI, 100,000 of debentures already authorised was not realised. Asked Rothschild's advice, and thought it a duty to explain the position. 2. Rothschild’s reply was that the late loan was heavy, and it was undesirable at that time to make arrangements then, but it was likely affairs would change for the better in the spring (of 1876), when he would he happy to act for Government. London, October 18, 1875. Rothschild’s reply respecting the four million loan : 1. “In fact, we believe that if it had not been for your exertions, and your personal influence, the terms would have been very different”—(re., more unfavorable). 2. Strongly recommending New Zealand Government not to think of disposing of unrealised balances in the then condition of the money market, and saying “it was generally thought at the time the loan was made, although there was no arrangement to that effect, that no further issue of stock would take place during 1876.” London, 21st October, 1875. Sir Jul’.us Vogel forwards correspondence to Dr Pollen, recommending action when desirable through previous loan agents, who s iould give preference to Rothschild as due to them for the successful floating of L 4,000,000 loan on favora ole terms.