WELLINGTON.

Thames Star, Volume VII, Issue 2580, 14 April 1877, Page 2

WELLINGTON.

Friday.

The Government have received a despatch from Sir J. Yogel re the inscription of colonial stocks by the Bank of England. It appears that but little had been done in the matter prior to Sir J, Vcgel's return %; England as AgentGeneral, up to that time, the last communication being a reminder to the Colonial Office that Parliament was about to meet, and a request for a copy of the bill it was intended to introduce. Certain difficulties had, however, arisen which, up to the end of .Ifcych, threatened to upset the whole affair. Ojn the ona

hand the Bank of England absolutely refused to have an) tiling to do with the Act if a certain clause authorising inspection of the register was not omitted; on the other hand a question had arisen as to the power of the colony to sue and be sued. Sir J. Vogel verbally pointed out to the Secretary to the Treasury that the latter was a large constitutional question affecting the rights of the Crown, and was no more incidental to the Inscription j of Stock Bill than to any other, and with regard to the inspection of the refeister he said that the bill, whilst it proposed to enable many persons and institutions to inscribe stock, could net be used to advantage except by the Bank of England, because the Government would not be willing to give power to create certificates to bearer or any person or institution not prepared to be liable for an excessive use of that power. JN"o Government would give such power with the knowledge of being liable to an unlimited extent if certificates were improperly issued; but the Bank of England asked for no responsibility except for certificates legitimately issued, for the machinery at its command for inscribing stock was so admirable that it was willing to accept the responsibility of conducting the business. He then suggested certain amendments by which the Bank of England would be exempt from the operation of the obnoxious clause. Shortly afterwards Sir J. Vogel was informed that the Treasury was disposed to think the.bill might be altogether dispensed with, excepting the part referring to the composition of stamp duties, and with that exception colonial legislation and a contract would be sufficient. When the question was first mooted in 1875 Sir J. Vogel himself was of the same opinion, but on counsel being instructed to prepare a bill for the New Zealand Assembly he was advised that Imperial legislation would be necessary to protect the bank and give the necessary facilities for issuing certificates to bearers. A bill for the Imperial Parliament was accordingly prepared and submitted to the Colonial Office. This had reference only to the management of New Zealand stock, but application having been made to the Colonial Office by several Colonial Governments asking that the proposed management of New Zealand stock might be extended to stocks of other colonies, a bill of a much wider purport was prepared, enabling not merely the Bank of England but any banks or colonial office to undertake the management of colonial stocks. Finally, about the end of March last,, a consultation was held, at which were present the Agent-General of New Zealand, his.counsei and solicitor, and the counsel and solicitor of the Bank of England, and the bill was examined clause by clause. Counsel on both sides agreed that Imperial legislation was necessary, and their joint opinion, with suggested alterations and omissions in the draft bill, had at the latest date just been sent to the Colonial Office, The principal poinl s noted by counsel are: That colonial stock shall be transferred only in the register; that the interest in stock of a stock-holder in dying shall be transferTable by his executors, notwithstanding any specific bequest thereof; where stock stands in the name of an infant or insane person jointly with that of a person not under legal disability, the latter will have power to give power of attorney for receipt of dividends ; provision is made for the rights to stock being transferrable by delivery of stock certificates; also for applying to coupons attended to stock certificates to bearer the law of England, relating to cheques on bankers; also for stamp duty on stock certificates, for renewal of stock cortificates when coupons are exhausted; for enabling bearer of stock certificate to transfer into a nominal certificate ; for prohibiting to apply for or hold stock certificates unless specially authorised to do so by terms of his trust; for enacting that no notice of any trust shall be receivable by the registrar (counsel consider this as of the highest importance, and that without it the scheme would be unworkable, and no contract between the debtor, Government, the stockholder, and the registrar could, avail to exclude the rights as against the three of beneficiare claiming the aid of a Court of Equity). The inspection of the register, not being a necessary part of the scheme, and being objectionable to New Zealand and the Bank of England, is recommended to be omitted. Colonial stock is made personal estate, notwithstanding its being a perpetual annuity, and is protected from foreign, attachment. There is no chance of the bank of England taking the management of English stocks until Imperial legislation, as above indicated, shall have been obtained. This day. Capt. Fairchild, who has been for the past two months suffering from inflammation of one eye, has resumed command of the Hinemoa, and wilt sail for Dunedin with the Governor/ the Commodore and a few of his officers, about the middle of next week..: The Commodore of the Wol«. verine will remain until his return. ,■, -

(FROM OUB OWN COBBESPONDEKT.)