Parliamentary Gossip.

Thames Star, Volume XI, Issue 3572, 8 June 1880, Page 3

Parliamentary Gossip.

(HERALD SPECIAL COBEE9PONDENT.)

The Council : Sir Julius Vogel.

The chief topic in the lobbies to-day has been the debate in the Legislative Council last evening, on Mr Waterhouse's motion, regarding; the inscription of loan. Mr Waterhouse alleged that by the conversion of the five-million five per cents., the colony would lose £1,600,000 in compound interest, and £1,000,000 in principal, making a total loss to the colony on the transaction of £2,600,000 (two millions six hundred thousand) when the time arrived for the repayment of the loan. He also contended that the real price was only equivalent to £78 for every £100, while New South Wales at the same time got £98 for similar stock. Colonel Whitmore expressed his opinion that the price was equivalent to £84, and ought to have been £90, hinting doubts whether Sir J. Vogel had .exercised the power of conversion of bis own motion or on. that of the Government, observing that if the latter, the Government were utterly unfit for office, and, if the former, Sir J. Vogel was equally so. Sir P. D. Bell considered Sir J. Vogel's conduct in the matter was inexcusable, as from his experience he should have been conversant with the circumstances of the colony, and moreover he should not have had a pecuniary interest in the conversion. He further declared that Sir J. Vogel was to receive one-eighth (2s 6d) per cent, commission for the conversion, and denounced the arrangement as grossly improper. I am obliged to recapitulate all this to make my explanation intelligible, which is in this case :—l. The net price of the five million loan, as converted from 5 to 4 per cent, stock* was just about £80. 2. The immediate, floating of the loan was a matter of most urgent necessity, owing to the extent to which it had been anticipated by the Grey Government, and it was therefore necessary ~to offer any terms to secure the money. The Grey Government were providing even for interest, by telegrams to agents to pay, while the latter could not obtain any more advances on any terms. Had the floating of the loan been delayed, even for a few days, the colony must have suspended payment at once; and it is now clearly proved that, had it been possible only to raise three millions, which at first was thought all that was practicable, payment must have been stopped before now. It was therefore essential to get the money, no matter at what price, and to offer the terms most likely to attain this end, hence the extra two millions. . 3.- As to Sir J. Vogel's commission, it was broadly asserted in the lobbies to-day that he was to get one eighth per cent., and that there was a distinct agreement to this effect on the part of the Government. Consequently several members and specials of a financial or arithmetical turn of mind set to work assiduously to calculate how much Sir J. Vogel would make by the transaction; The first shot was seventy thousand, which by degrees dwindled to £30,p00 and lastly to £6250. It did not occur to any' of these gentlemen apparently to ascertain if their premises were correct, but it struck me as worth while to ask, when I speedily ascertained that, although it was quite true Sir J. ;V6gel had claimed commission, the amount he would actually receive would be nil, the Government having declined to recognise his claim, ,on the ground that the matter came within his duties as Agent-General. I believe it is understood that in the case of future loans he would receive one-twelfth per cent, but on no past loans is any commission to be paid him or for carrying out the process of conversion. There is such widespread misapprehension on these important points that I deem it advisable to send this explanation.