CONVERSION OF PROVINCIAL. LOANS.

Southland Times, Issue 690, 1 July 1867, Page 2

CONVERSION OF PROVINCIAL. LOANS.

Correspondence between the Honorable the Colonial Secretary and His Honor the Superintendent of Canterbury respecting the conversion of Provincial loans into Colonial stock —May, 1867. Colonial Secretary's Office, Wellington, May 3, 1867. Sir, — [Referring to the information received by the last mail from England of the recent failure of the attempt to place the Canterbury Provincial Loan on the London market, I have to inform, your Honor that the Government is most anxious that all loans authorised to be raised for public, purposes in New Zealand should be negotiated at such prices as will prevent any sacrifice of the public interests, and with a view of promoting that object, intends to submit to the General Assembly next session a measure for converting the Provincial loans into Colonial stock. As Mr Crosbie "Ward is about to proceed to England as agent for the Province of Canterbury, and it is understood that one of the objects of his mission is to endeavor to negotiate the Canterbury loan, I have thought it right to inform, your Honor of this intention of the Government, and if youi Honor wishes it the Grovernment will be happy to confer with Mr Ward on this subject while he is in Wellington on his way to London. I have the honor to be, &c, E. W. Staffobd. His Honor the Superintendent of Canterbury. . : Superintendent's Office, Christchurch, May 6, 1867. .--' - Sir, — I have the honor to acknowledge the receipt of your letter of the 3rd instant, referring to the information re ceived from England of the failure of the recent attempt to negotiate a portion of the Canterbury Loan in the London market, aud informing me that the General Grovernment is most anxious that all loans authorised to be raised fox public purposes in New Zealand' should be negotiated at such prices as will prevent any sacrifice of the public interests, and with the view of promoting that object, intends to submit to the Greneral Assembly a measure for converting the provincial loans into colonial stock, and further stating that as Mr Crosbie Ward is about to proceed to England as agent for this province, one of the objects of his mission being to endeavor to negotiate the Canterbury Loan, you have thought it right to inform me of this intention of the Government, and that you will be happy to confer with Mr .Ward on the subject while in Wellington on his way to London. " ... . I have the honor to tender you my thanks for this early intimation of the intentions of the Government in reference to this matter. I had already requested Mr Ward to apply to you during his stay in Wellington for a signification of the course which the Government would be likely to adopt during the ensuing session of the Assembly, with regard to the consolidation „ of the provincial loans into colonial stock, in order that, should the Government decide to introduce a. measure with that object, the information ' so anticipated might be used favorably to the pi'ompt and satisfactory disposal of the bonds alluded to. I am gratified to find, therefore, that tb© subject is occupying the attention of the Government and I shall re<ji*e»t Wt '

Ward to place himself in comniimicauon with you, -with a view of learning the nature of the measure, and generally the terms and conditions upon which you propose to convert provincial bonds into colonial stock. * Under the circumstances in which the province is at present resting, it is very desirable that Mr Ward should be fully advised as to the intentions of the Government in this respect, and I therefore venture to bespeak for him the fullest confidence which you can bestow, convinced as. I am that it will tend to promote the object for which your letter now under reply was written. I shall feel obliged by your communicating to me the result of your interview with Mr Ward, as it is a matter of doubt whether time will admit of his addressing me before his departure from Wellington. I have the honor to be, &c, W. S. MoOBHOTTSE, Superintendent. The Hon the Colonial Secretary. Colonial Secretary's Office, . . Wellington, May 8, 1867. Sir, — I have the honor to acknowledge the receipt of your Honor's letter, No. 160, of the 6th instant, and in reply, to enclose for your information a copy of a letter of this date, which I have addressed to Mr Crosbie Ward, after an interview with him on the subject of the proposed conversion of Provincial bonds into colonial stock. I have the honor to be, &c, E. W. Staitoed. His Honor the Superintendent, ] Canterbury.

Colonial Secretary's Office, Wellington, May 8, 1867. Sir, — With, reference to my letter of the 3rd instant, in which, having special reference to the recent failure of the attempt to place certain debentures of the Canterbury Province on the London market, and to your intended visit to Great Britain in the official capacity of agent for that Province, I have thought it desirable to inform the Superintendent of Canterbury generally of the intention of the Government to submit to the General Assembly, at its next session, a measure for the consolidation of Provincial loans. I now desire to state, more especially for your information and guidance, so far as it is at present practicable to do so, that the Cabinet has definitely determined to introduce as a part of its financial policy, a bill to authorise the issue of colonial bonds to an amount which will cover the entire amount of Provincial loans hitherto authorised, including those already raised and those not raised (wholly or in part) respectively. In all probability the interest will be fixed at six per cent., and the colonial debentures so to be raised will be secured on the entire revenues of New Zealand, territorial and ordinary. As to the inter-provincial arrangements and guarantees - for repayment which it may be necessary to introduce into the measure, I am unable at present to furnish you with particulars. You are yourself cognisant of the difficulties and complications which will have to be dealt with, but the Government will not be deterred from pushing forward their measure by any consideration of these difficulties. It is not, however, necessary for the success of your mission that these interprovincial arrangements be made known, even if they were finally determined on. Ifc is sufficient that you should be explicitly assured that the proposal will embrace the guarantee by the Colony of New Zealand of all provincial loans, subject only to domestic arrangements, that I apprehend being the sole question on which the capitalists will ask for information. The Government regard this measure as one of such great importance as to be inclined to make it a ministerial question ; but I am unable at present to speak definitely on this point. — I have, &c, E. W. Stafi-obd. Crosbie Ward, Esq., Superintendent's Office, Christchurch, May 14th, 1867. Sir, — I have the honor to acknowledge the receipt of your letter of the Bth instant, No. 232, and to thank you for forwarding therewith, for my information, a copy of a letter of the same date, which you addressed to Mr. Crosbie Ward, after an interview with, him on the subject of the proposed conversion of provincial bonds into colonial stock. — I have &c, W. S, MOOKHOTJSE, Superintendent. The Hon. the Colonial Secretary. *

The New Yoek Hebald ox the Yacht Race. — Mr. James Gordon Bennet appears to have been partially converted to decency by the enthusiastic reception given to his son as commander of the winning yacht in the Atlantic race. He maintained the old offensive tone as reregards this country up to the latest possible moment, but -when the news of the banquet given to the yachtsmen has to be spread he changes his tone, and tells his readers that the Americans ? ' have conquered even the doubts and delusions of England, as John Bull welcomes Brother Jonathan as a chip of the old block. The good Queen, always our friend, has at last won her Cabinet to our side ; and so those Alabama claims, Mr. Seward tells us, need not occasion the least alarm." By way of extracting a practical lesson from the occasion he warns England, however, that this race is a proof that American shipbuilders can build sailing vessels so as to make the time of steamships, and that in the event of ■war between the two countries, the commerce of our own would inevitably suffer most severely from the excursions of Alabamas of the build of the Henrietta, Shand, Mason, and Co. have, jast completed an improved description of land steam fire-engine for tropical climates. It has wrought-iron spoke wheels, and generates steam very qui>-kly, the time to get up steam to a working lire-suiv btiii« on.y seven minutes.. The engine w;;s se i-rely tvs r ed at the works of the makers, and the whole of the trials were,, considered satisfactory. It hos been shipped on board the Yintorr, bonndfor Calcutta Two wealthy and youthful earls have just fallen victims to that scourge of our climate, consumption j viz., Karl Brownlow, at the age of 24, and Earl Elvers, at the age of 17. The rent-roll of the former produced £120,000 a 'year, and that of. pi latter ft yeijpr,-^' Home News.,"