THE AGENT-GENERAL AND THE LOAN.

Globe, Volume XXII, Issue 1969, 16 June 1880, Page 3

THE AGENT-GENERAL AND THE LOAN.

[VROM OUR OWN CORRESPONDENT.]

WELLINGTON, June 15. Papers relating to the inscription of stock and the loan were laid upon the table to-day. The papers commence with a letter from the agents of the colony, Messrs Julyan, Ommonoy, and Larnach, in reference to the inscription of the stock, and suggesting delay. On the 17th of April an Order in Council was published, appointing Sir J. Vogel an agent, and a notification was made to the Bank of New Zealand that Sir J, Yogel was appointed so long as he was the Agent-General. Ho writes, saying that as the others wore appointed unconditionally he looks upon this mode of appointment as an indignity. On Juno 17th Sir J. Yogel writes that if the Government will allow him one-twelfth (instead of one-eighth formerly named), he would act as Agent-General without any salary at all. One-twelfth was the allowance privately made to the Crown agents as an honorarium until Lord Carnarvon raised their salaries in lieu of it, so that the proposal involved no larger cost for loans than formerly, whilst the salary of the Agent-General will be saved. On November 4th Messrs Julyan and Yogel write that Messrs Julyan, Sargeant, Yogel, and Larnach waited on the governor and deputy-governor of the Bank of England to ascertain if the Bank was willing to undertake the agency under the agreement of 1875. They agreed, but the governor (Mr Birch) emphatically stated that, without questioning the resources of New Zea’and, there was a strong feeling in the city against its borrowing so largely as it was about to do in addition to its present loans. On November 7th Sir J. Yogel telegraphed to the Premier that he could not name a time to resign, as the shareholders would think it unfair to entertain such an intention now. He was willing to take the loan agency on payment by percentage, and to act as Agent-General without salary so long as suits the Government. On November 10th the Premier telegraphed to Sir Julius Yogel as follows:—“AgencyGeneral incompatible with other business; Government considers expediency retiring therefrom appointing you agent under Inscribed Stock Act at per centage. Report full by post arrangements you would propose. Sketch scheme. Estimate annual conversion. We should associate |two agents with you.” On JNov. 18th Sir J. Yogel writes a long letter defending his acting as Agent-General and director of the agricultural company. He set forth at length his services to the colony, and says that the conception of the Imperial Act was duo to him, and that it would never have been passed but for him. He thinks that each agent should be paid one-eighth of 1 per cent , and says that supposing that over the course of ton years twelve millions were converted, the payment each agent would receive for the ten years would bo £15,000, which would be a very moderate sum considering the enormous nature of the transaction. On December 16th Sir J. Vogel writes claiming that the arrangement he proposed should commence with the loan lately launched. He says that it would be especially humiliating to him not to be paid on this occasion, since there is no question that the success of the loan depended upon the arrangements for inscribing thejstock, of his share in which the Government are well aware. The great attraction of the loan was the inscribed stock, the option to take which was given.

On February 20th the Premier writes regretting that the Government are unable to agree. On 27th February the Premier again writes that upon careful consideration of the terms of the conversion it appears that, although the operation will result in a diminished payment as interest, yet it involves so large an increase in the capital to be repaid in fifty years os to make the operation not upon the whole a favorable one for the colony. The Government thinks that .the amount realised by the agents would greater than the sum stated by Sir J. Vogel. Parliament, however, will be consulted. The Government consider that the principle of fixing a maximum payment yearly for each agent is one that might be adopted, and that the amount of £2OOO is not an unreasonable one at which to fix it. On March 4th Sir J. Yogel cables “ For the reason stated I still consider that I should be paid for negotiating the last loan. I am content to leave it to Parliament, to which kindly refer it. Will accept the proposal for the future, which I understand means a commission of one-twelfth on all loans, including the late loan as converted, which probably is all that can be done for a year. Am quite content with the payment, subject to the approval of Parliament. Agents must be paid, and suitable agents will not act for less. If other agents are paid more I would expect the same. I desire to commence no w,as a general election is pending. Continue as Agent-General till relieved, salary to be deducted from my commission,” On March 4th the Hon. J. Hall wires : —“ New arrangement excludes the late loan for which the work is already done. No objection to your commencing as agent, subject to the conditions stated in my letter last mail, with the understanding that you continue to act as Agent-General until relieved. The terms for any contemplated conversion to be submitted to the Government before publishing.” On March 13th Sir J, Yogel replies : —“ The work of conversion was not done without great judgment, and constant care is still required in dealing with it. From your telegram in November last I naturally thought that the conversion of the late loan was included. Your proposal now virtually leaves me unpaid for nearly a year, against which I strongly protest.” On April 21st the Hon. J. Hall again writes, stating that “ the duty cannot bo such as would justify the payment of a commission amounting in the aggregate to one-quarter per cent, upon the amount of stock inscribed. The Government will not, therefore, be able to recommend to Parliament an arrangement on the basis proposed by you.” On April 20th the agents write a joint letter to the Premier. They say that they could not get better terms for the loan, and they point out the work to be done. On April 19th, Sir J. Yogel writes a long letter, sotting forth his claims. Ho says, “If it be the pleasure of the Government that I, the author of the measure, which will be worth hundreds of thousands of pounds to the colony, should alone be under remunerated, I must bow to the decision, though I shall always feel that I have been very badly treated. In any case I trust that the pleasure of Parliament will be taken.” On the 6th of December Sir J. Yogel telegraphs as to the loan :—“ The Bank ot England agree to call for tenders, because having made an agreement in 1875, it cannot refuse. If the Bank of England refused, it would bo most disastrous. The agreement, therefore, is of infinite value to the colony, and I submit that some recognition of the value of the agreement should be made, for which not even thanks were accorded me. Shall launch the whole five millions next week, and anticipate a great success.” On January 22nd, Sir J. Yogel wires: —“ Confidential —New loan in great demand ; over 5 premium, which is due to the option of converting. Serimgeour thinks that the inscribed stock will go to 95. The conversion can be made very profitable.” On April 24th, the Hon. J. Hall writes to Sir J. Yogel to send a nominal list of subscribers to the loan, with the sum subscribed. On the 21st of November Sir J. Yogel telegraphed as follows:—“Julyan seriously alarmed. Explain the least that you require for the Treasury bills falling due. The sinking fund trustees may help. Do not remove the land fund from the consolidated revenue. Explain what you propose doing with the £BOO,OOO bills. Don’t telegraph statement to the Press. Reply prompt; all anxious to help you.” On 23rd November the Hon. J. Hall telegraphs : —“ Land fund remains as security. Hope you will succeed in providing for the Treasury bills duo in March. Price must be left to you.” On November 24th the Hon. J. Hall telegraphs :—“ Strictly confidential. The failure to raise the loan would cause serious difficulties. This is for your guidance respecting the price.”