THE NEW ZEALAND LOAN GUARANTEE.

Southland Times, Volume I, Issue 39, 3 September 1864, Page 3

THE NEW ZEALAND LOAN GUARANTEE.

The following is the Bill submitted to Parliament, to guarantee the liquidation of a loan for the service of New Zealand : — Whereas by an Act of the General Assembly of New Zealand, passed in the twenty-seventh year of Her Majesty, intituled "An Act for raising a Loan of Three Million pounds sterling for the Public Service of the Colony of New Zealand," it was enacted that it should be lawful for the Governor of New Zealand to appoint the Agent or Agents therein mentioned, with authority to borrow and raise on behalf of the said colony such sum or sums of money, not exceeding in all three million pounds sterling, as the said Governor might direct. And whereas it is expedient tliat the Commissioners of Her Majesty's Treasury should be authorised to guarantee the payment of interest and repayment of the principal of part of the sum to be so borrowed, not exceeding the amount of one million pounds sterling, upon the conditions hereinafter mentioned : Be it therefore enactedby the Queen's Most Excellent Majesty, a by and with the advice and consent of the Lord spiritual and temporal, and Commons, in this present Parliament assembled, and by the authority of the same as follows : 1. The liquidation of all such sums, not exceeding in the whole the sum of one million pounds, as shall be borrowed and raised in Great Britain, with the approbation of the Commissioners of Her Majesty's Treasury, under the said first-recited Act of the General Assembly of New Zealand, or of any act passed in amendment ofthe same, together with the interest thereon, not exceeding the yearly rate of four pounds for oue hundred pounds, shall be guaranteed under this act ; and for giving effect to such guarantee it shall be lawful for the Commissioners of Her Majesty's Treasury to direct and cause to be issued and paid out of the growing produce of the Consolidated Fund of the United Kingdom of Great Britain and Ireland such sums as shall be required to make good any deficiency which shall happen in the regular payment, on the part of New Zealand, of the interest accruing due upon such sums as shall be borrowed as aforesaid, or in the liquidation of the principal sums when the same shall become payable. 2. Provided nevertheless, that it shall not be lawful for the Commissioners of her Majesty's Treasury to approve the borrowing and raising of the hereinbefore mentioned principal sum of one million pounds, or any part thereof, until provision shall have been made by the General Assembly of New Zealand to the following effect, that is to say — 1. That every part of the said principal sum shall be repayable and repaid at the expiration of thirty years at the furthest from the dav on which such part shall have been borrowed ancl raised . 2 That for the purpose of providing a sinking fund for the liquidation ofthe said principal sums, a sum equal at the least to two por J cent, per annuni on the total of such principal sums shall be paid yearly, and invested and increased by way of accumulation in the manner directed hy the said first recited act in respect of the sinking fund therein provided for. 3. That the said principal sums and all interest thereon shall be a charge on the general j revenue of New Zealand, having priority over all other charges upon the said revenue, ex. cept charges created in virtue of an act passed by the said General Assembly, intituled "The New Zealand Loan Act, 1856, " ancl of an Act of Parliament passed in the twenty-first year of her Majesty, intituled " An Act to guarantee a Loan for the Service of New Zealand," or either of them, and that the said general revenue shall for the purposes, of this act be deemed to include all the revenue wliich shall arise from duties of imports ancl exports, from the Post OfEce receipts, and Supreme Court fees, from the disposal of waste lands ofthe Crown, and from all taxes, duties, rates and imposts levied or to be levied by virtue of any Act of the General Assembly of New Zealand. 3. All the sums whicli shall be so issued and paid out of the said consolidated fund in respe :t of the interest of the sums borrowed as aforesaid, or the liquidation of the principal sums with interest upon the sums so issued after the yearly rate of five pounds for one hundred pounds, to be computed from the several times of issuing the same, shall be charged upon the general revenue of the colony of New Zealand as hereinbefore defined. 4. No Act passed by the Legislature of New Zealand in anywise discharging or varying the security to be given in accordance with this Act, upon the revenue arising from the duties of import and export and from the disposal of waste lands of the Crown, for the repayment of the sums of money borrowed as aforesaid, and the interest thereon, shall be valid, unless such Act contain a clause suspending the operation of the same until her Majesty's pleasure shall have been taken thereon, and the same shall have been confirmed by her Majesty, with the advice of her Privy Council and a proclamation of such confirmation having been given Bhali have been made by the Governor or person administering the Government of the said colony. 5. The Commissioners of her Majesty's Treasury shall from time to time certify to one of Her Majesty's principal Secretaries of State the amount so paid from time to time on account of the interest or principal of. the sums borrowed jm* afoygsfcid 5 sod -mch cefrtifictLte; shall' be ccmdnsxve

Evidence of the amount so naid out of the Consolidated Fund of the said United Kingdom, andof the time when tho same was paid on, account of the interest or principal -of- the-' sums so borrrowed. . ....- t y 6. Tho Commissioners of her Majesty's Treasury shall causo to be prepared, and shall lay before both Houses of Parliament within fourteen days next after tho beginning of every session, an account of all sums from time to time issued out of the Consolidated Fund of the United Kingdom by virtue of this Act towards making good any •Buch deficiency as aforesaid,- and also on account of all sums repaid by or recovered from New Zealand, by reason of such advance, with the interest paid or recovered thereon. 7. And whereas by an act of the General Assembly of New Zealand, passed in the twentyseventh year of her Majesty, intituled " An Act to enable the Governor to establish Settlements for colonization in the Northern Island of 'New Zealand," provision was made, for the proclamation of certain districts within the said colony, and for setting apart within such districts eligible sites for settlements for colonization, and for other matters therein mentioned. And whereas doubts are entertained whether the provisions of the said Act, or some of them, may not be void by reason of their repugnance to the third section of an Act of Parliament of the twentith and twenty-first years of Her Majesty, intituled" An "Act to guarantee a Loan for the service of New Zealand." Be it enacted as follows : — Nothing in tlie said act to enable the Governor to establish settlements for colonization in the Northern Tsland of New Zealand shall be or be deemed to have been void or inoperative on account of any repugnancy to any of the provisions of the | laat mentioned Act of Parlianent. I =