ARTICLES OF AGREEMENT BETWEEN THE NEW ZEALAND GOVERNMENT AND THE BANK OF NEW ZEALAND FOR THE CONDUCT OF THE GOVERNMENT BANKING BUSINESS TOGETHER WITH COPY OF THE SOUTH AUSTRALIAN AGREEMENT WITH THE ASSOCIATED BANKS.

Appendix to the Journals of the House of Representatives, 1893 Session I, B-11

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ARTICLES OF AGREEMENT BETWEEN THE NEW ZEALAND GOVERNMENT AND THE BANK OF NEW ZEALAND FOR THE CONDUCT OF THE GOVERNMENT BANKING BUSINESS TOGETHER WITH COPY OF THE SOUTH AUSTRALIAN AGREEMENT WITH THE ASSOCIATED BANKS.

Presented to both Houses of the General Assembly by Command of His Excellency.

WELLINGTON.

1893.

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Jtrtidte 0f Agreement made this twenty-fourth day of March, one thousand eight hundred -and ninety-three, between the Honourable John Ballanoe, Colonial Treasurer of New Zealand, and a member of the Executive Council thereof, of the one part, and the Bank of New Zealand of the other part: Whebeas by the fifteenth section of " The Public Eevenues Act, 1891," it is enacted that the Treasury may from time to time agree with any bank upon terms and conditions for the receipt, custody, payment, and transmission of public moneys, within or without the colony, and for advances to be made under the authority of or by virtue of any Act of the General Assembly, and for the charges in respect of the same, and for the interest payable by or to the Bank upon balances or advances respectively, and generally for the conduct of the banking business of the Government: And whebeas proposals have been made by the Treasury to the Bank of New Zealand for carrying on the banking business of the Government of New Zealand under the provisions of the herein-before-recited Act, and such proposals have been accepted by the said Bank: Now, thebefobe, the said John Ballance, as such Colonial Treasurer aforesaid (and who is included in the expression " the Treasury," hereinafter defined), hereby agrees with the Bank of New Zealand (hereinafter termed " the Bank"), and the Bank hereby agrees with the Treasury, as follows (that is to say) :— 1. For the purposes of this agreement the following terms and expressions shall have the meanings hereby assigned to thorn, unless there be something in the context repugnant thereto :— " The Government " means the Government of the Colony of New Zealand. " The Treasury " means the Colonial Treasurer for the time being of the said colony, and includes any member of the Executive Council for the time being acting as or for the Colonial Treasurer. "Treasury Eegulations " mean any regulations made by the Governor in Council and for the time being in force under " The Public Revenues Act, 1891." " The Bank " means the Bank of New Zealand incorporated in New Zealand under the provisions of the New Zealand Bank Acts 1861 to 1891, and includes the office of the Bank carrying on business in London. Whenever in this agreement any officer is referred to by the title of his office, or any account is mentioned, it shall be understood to mean an officer or account of a like name, as the case may be, mentioned in " The Public Eevenues Act, 1891," or the Treasury Eegulations aforesaid. As to Deposits. 2. All moneys paid to the Government shall, subject to the terms of this agreement, be deposited with the Bank : Provided — (1.) That whenever the balance at credit of the Public Account or the New Zealand Public Account, either alone or taken together, shall exceed three hundred thousand pounds, the Treasury shall at any time be at liberty to invest such excess in interest-bearing securities, or in fixed deposit with any bank ; and (2.) Further, that the Treasury shall have the like powers of investment in respect of all or any part of the moneys at credit of the Eeceiver-General's Deposit Account, the Post Office Account, the Government Insurance Account, the Public Trustee's Account, or other special accounts of the Government. 3. The Bank shall at each of its branches accept deposits of any amount for credit of the Public Account, the Eeceiver-General's Deposit Account, the Post Office Account, the Government Insurance Account, the Public Trustee's Account, and such other accounts as may be required ; and shall, for every sum deposited, give a receipt in regulation form, and in the office pass-book of the officer depositing the same. But special sums accruing from the sale of securities or otherwise, and not forming part of the consolidated revenue of the colony, shall be lodged only at the Wellington or London office of the Bank, unless the Bank shall consent to receive them at some other office. 4. All deposits for credit of the Public Account, or the Government Insurance Account, made at any of the branch offices of the Bank in the colony, shall in each case be transferred to the credit of the Public Account, or the Government Insurance Account, at Wellington on every Saturday, I—B. 11.

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after the close of business, unless for special and exceptional reasons such transfers shall require to be made on some other day, in which case such transfers shall be made as the Treasury shall direct. 5. All deposits for credit of the Eeceiver-General's Deposit Account, the Post Office Account, ■or the Public Trustee's Account made at any of the branch offices of the Bank in the colony shall be transferred daily to the credit of the respective accounts at Wellington. 6. All moneys transferred as required by clauses four and five shall forthwith, on receipt of advices, be credited to the Public Account, the Eeceiver-General's Deposit Account, the Post Office Account, the Government Insurance Account, or the Public Trustee's Account, as the case may be, and the credit balance of these accounts as a whole shall thereupon bear interest at the rate herein agreed upon. 7. The Bank shall, at its London branch, receive deposits of any amount for credit of the New Zealand Public Account, the Foreign Imprest Account, or such other accounts as may be required, and shall give receipts for all such deposits in such form as may be prescribed by the Treasury. 8. All moneys at credit of the New Zealand Public Account, the Foreign Imprest Account, or the account of any person acting as an Agent for the Government in London shall bear interest at the rate herein agreed upon. 9. The Bank shall, on demand made by the Treasury, transfer to the Public Account, the New Zealand Public Account, or the Post Office Account any moneys standing to credit of the official account of any public officer, either in the colony or in London, except moneys at credit of the Government Insurance Account, the account of the Commissioners of the Public Debts Sinking Funds, or the Public Trustee's Account. 10. The Bank shall furnish to the Receiver-General, to the Postmaster-General, to the Government Insurance Commissioner, the Public Trustee, or to such other persons respectively as it may in that behalf be directed in accordance with the Treasury Begulations, such periodical statements of the deposits made at its several branches in the colony and in London as the Treasury, the Post-master-General, or the Controller and Auditor-General, or Audit Officer in London may respectively require. As to Eemittances. 11. The Bank shall make all remittances of public money within the colony by course of post free of charge. Such remittances shall be held to include all remittances by draft or otherwise, and all sums transferred to or from Wellington by or to other branches of the Bank. As to Disbursements, etc. 12. The Bank shall transfer by course of post, free of charge, from the Public Account at Wellington such moneys as may be required, and shall place the same to the credit of the Public Account Disbursement Account at such of its branches as may be directed by the Treasury, to meet the cheques of the Paymaster-General drawn on such branches, and shall pay such cheques in accordance with the form of advice transmitted in each case and with the Treasury Eegulations in that behalf. 13. The Bank shall transfer, free of charge, from the Government Insurance Account, such moneys as may be required, and shall place the same to the credit of the Government Insurance Disbursement Account at Wellington, to meet the cheques drawn by the Government Insurance Commissioner, and shall pay such cheques at its branches, in accordance with the form of advice transmitted in each case and with the Treasury Eegulations in that behalf. 14. The Bank shall transfer by course of post, free of charge, from the Post Office Account to credit of the deposit accounts of Chief Postmasters at its branches, such moneys as from time to time may be required by the Postmaster-General to be so transferred by cheque drawn by him on the Post Office Account at Wellington. 15. The Bank at any of its branches shall honour, free of charge, sight-drafts of the Postmasters, drawn in accordance with the Treasury Eegulations on the Postmaster-General at Wellington. 16. The Bank, on being provided with requisite funds, shall, at any of its branches, make payments to and take receipts from the ordinary creditors of the Government within the colony, without charge, except when such payments involve the transfer of money by telegraph, when they shall be made upon- and subject to the terms of clause twenty-seven hereof. 17. The Bank, on being provided with the requisite funds, shall, at any of its branches, pay coupons for interest or the principal of debentures payable by the Government within the colony, without charge. 18. The Bank, on being provided with requisite funds at its London office, shall at that office make payment to and take receipts from the ordinary creditors of the colony in London without charge. 19. The Bank shall, at any of its branches, receive deposits for credit of the Imprestees of the Government, or for credit of special deposit accounts of officers of the Government, and shall honour the cheques of such Imprestees or officers, as the case may be, and furnish such periodical statements of account-as the Treasury Eegulations may require or the Treasury or Controller and Auditor-General may direct. 20. The Bank shall furnish to the Paymaster-General, and the Government Insurance Commissioner, such periodical statements of the transfers to and the operations on the Public Account Disbursement Account at its several branches, and the Government Insurance Disbursement Account at Wellington, as these officers may require. The Bank shall also furnish to the Treasury,

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the Controller and Auditor-General, or such other person as may be authorised by either of them to demand the same, such statements of any official account opened by or for or on account of any officer of the Government as may at any time be required. As to Charges and Inteeest. On Deposits. 21. The Bank will allow interest on deposits at the rates following, that is to say,— (1.) On the daily balances of the Public Account, the Eeceiver-General's Deposit Account, the Post Office Account, the Government Insurance Account, the Public Trustee's Account, and the account of the Commissioners of the Public Debts Sinking Funds at Wellington, when the balances of those accounts as a whole are under eighty thousand pounds, four per cent. (2.) When the balances of those accounts as a whole exceed that amount, three per cent. (3.) Provided that whenever the balances of the accounts mentioned in subsection (1) of this clause, exclusive of all sums deposited for fixed periods, shall exceed four hundred thousand pounds, the Treasury or the Bank may require a reconsideration of the rate of interest to be paid thereon. In the event of the Treasury a.nd the Bank failing to agree thereon, the Bank may refuse to pay interest on any sum so in excess, and the Treasury may thereupon deal with such excess in the manner provided in clause two of this agreement. (4.) On the daily balances of the New Zealand Public Account and the Foreign Imprest Account of the New Zealand Government in London, one and a quarter per cent, less than the Bank of England rate. Interest on sums deposited to be reckoned from the day subsequent to each deposit: Provided that no interest shall be paid under this provision exceeding the rate of five per cent., and that the Bank shall have the option of declining to pay interest on balances in excess of four hundred thousand pounds. (5.) On fixed deposits made — At the Bank at Wellington, or at any of the branches of the Bank in the colony,— At such rates as may be mutually agreed upon from time to time. At the London branch of the Bank up to three hundred thousand pounds,— For six months, three per cent.; For twelve months, four per cent. On Advances. 22. The Bank will be prepared to advance to the Government in amounts not exceeding two hundred thousand pounds per month— (1.) On the security of Treasury bills at par to any amount not exceeding one hundred thousand pounds. Such advance to be made at the option of the Government either in the colony or in London, but not in both. (2.) On New Zealand securities quoted on the London Stock Exchange, or on debentures for any loan authorised to be issued and which will be so quotable, with power to remit and hypothecate the same, any amounts, either in the colony or in London, which together shall not, in the whole, exceed three hundred thousand pounds. Bat the Bank shall not be required to advance any amount exceeding ninety per cent, of the nominal value of a four-per-cent. loan, and in the like proportion for a loan bearing a rate of interest other than four per cent. 23. The Bank will make advances as above referred to at the rate of interest following ; that is to say,— In the colony, at four and one-half per cent. In London, at four per cent.; or, in case the Bank of England rate is in excess of three per cent., then at the rate of one per cent, above the said Bank of England rate. 24. Whenever the Government has obtained advances from the Bank under this agreement, the Government shall not be at liberty to place any sums of money on deposit with other banks so long as such advances remain unpaid, and any sums previously so deposited shall, on maturity of the deposits, be placed with the Bank, if the Bank so requires, at the rates then current for deposits of a like class. 25. The Government shall not obtain advances from or through any other bank, except upon failure to obtain the amount required from or through the Bank at a rate of interest not exceeding that specified in clause twenty-three, or such other rate as the Treasury may deem reasonable. ' But this provision shall not apply to any advances which the Government may obtain in London. On Remittances. 26. The Bank will sell its drafts to the Government, — (1.) On London, at ninety days' sight at par, or at other currencies at one-quarter per cent, concession on the rates offered to the public, but not below par. The Bank shall not be required to sell drafts at a shorter currency than sixty days' sight. (2.) Drawn in London on the Bank in the colony, at one-quarter per cent, concession on the rate charged to the public.

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(3.) Drawn on any place within the Australian Colonies where the Bank is represented,— If payable at fifteen clays' sight, at par ; If payable on demand, at one-half of the rate charged to the public. 27. The Bank will make remittances by telegraph, when so required by the Treasury, at the rates following ; that is to say, — (1.) Within the colony, at one shilling per cent. (2.) From London to the colony,— If payable at three days' sight, at one per cent. If payable at fourteen days' sight, at three-fourths per cent. (3.) From the colony to London, — If payable at three days' sight, at one and a half per cent. ; If payable at fourteen days' sight, at one and a quarter per cent. : Provided that, without the consent of the Bank, no remittance shall be made by telegraph exceeding the amount of twenty-five thousand pounds in any one month. 28. The Bank will purchase bills of the Government drawn on London at thirty days' currency at par, at other dates at one-quarter per cent, concession on the rates offered to the public. 29. The Bank shall not be bound to negotiate any drafts on London other than drafts payable on demand drawn on its London office when there are funds to the credit of the New Zealand Public Account, or drafts drawn on the Crown Agents for the Colony which the said Agents have signified to the Bank in London their agreement to accept, nor for any amount exceeding in any month the sum of two hundred thousand pounds. 30. Drafts on the colony shall be negotiated by the Bank only at its own option. As to Payment of Debentures and Interest. 31. Exclusive of charges for remittance, the Bank will, if required, pay coupons for interest payable in Australia, at one-quarter per cent. ; in London, at one-eighth per cent. 32. Exclusive of charges for remittance, the Bank will, if required, pay the principal moneys due on debentures or Treasury bills in Australia or in London at one-quarter per cent. Miscellaneous Provisions . 33. This agreement shall come into operation on and after the first day of April, one thousand eight hundred and ninety-three, and may be terminated by either the Treasury or the Bank at any time on giving six calendar months' notice in writing to that effect. Any such notice, if given by the Treasury, may be left at the banking-house of the Bank at Wellington. If given by the Bank, may be left at the Treasury Office in Wellington. 34. Nothing in this agreement shall be deemed to prejudice any right or power which the Governor in Council or any Commissioners appointed by him may have under the fifty-sixth section of "The Public Eevenues Act, 1891." Nor shall prevent the Treasury from withdrawing all or any part of the moneys lying to the credit of the Government in the Bank within the colony should it at any time consider the position of the latter unsafe, and upon an Order in Council being obtained for that purpose. 35. The Bank shall not in any manner assign or dispose of this agreement, or any benefit or advantage thereof, wholly or in part, to any person or persons, or any corporate bod} , , without the written consent of the Treasury for that purpose first obtained. In "witness whereof the said John Ballance, as such Colonial Treasurer as aforesaid, hath hereto set his hand, and William Turton Holmes, the General Manager of the said Bank in New Zealand, under and by virtue of a certain Power of Attorney bearing date the fourth day of November, one thousand eight hundred and ninety-one, and granted to him by the said Bank, hath signed these presents on its behalf, the day and year first herein mentioned. Signed by the said John Ballance, in the presence of (Signed) Jas. B. Heywood, f- (Signed) J. BALLANCE. Secretary to the Treasury, j Wellington. Signed by the said William Turton Holmes, as the Attorney and General Manager of the Bank (Signed) of New Zealand, in the presence [ THE BANK OF NEW ZEALAND, of By its Attorney, (Signed) A. E. Mills, W. T. Holmes. Bank Clerk, Auckland.

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3lrtkleS 0f %sXttmmt made this twonty-eigkfe twenty-fourth day of April March, one thousand eight hundred and eighty ninety-three, between the Honourable Haay-AlbeEt-Atkinson, John Ballance, Colonial Treasurer of New Zealand, and a member of the Executive Council thereof, of the one part, and the Bank •of New Zealand of the other part: Whereas by the eix/t/teenth section of ■" The Public "Revenues Act, 18£SP1," it is enacted that the Treasury may from time to time agree with any bank upon terms and conditions for the receipt, custody, payment, and transmission of public moneys, within or without the colony, and for advances to be made under the authority of or by virtue of any Act of the General Assembly, and for the charges in respect of the same, and for the interest payable by or to the Bank upon balances or advances respectively, and generally for the conduct of the banking business of the Government: And wheeeas proposals have been made by the Ba&k-of Now Zealand Treasury to the treasury Bank of New Zealand for carrying on the banking business of the Government of New Zealand under the provisions of the hereinbefore-recited provisions of Public Rovonues-Aet—3r&f%" Act, and such proposals have been accepted by the Treasury said Bank : Now, theeefoee, the said Harry Alberi Atkinson, John Ballance, as such Colonial Treasurer aforesaid (and who is included in the expression " the Treasury," hereinafter defined), hereby agrees with the Bank of New Zealand (hereinafter termed " the Bank"), and the Bank hereby agrees with the Treasury, as follows (that is to say):— 1. For the purposes of this agreement the following terms and expressions shall have the meanings hereby assigned to them, unless there be something in the context repugnant thereto: — " The Government " means the Government of the Colony of New Zealand. " The Treasury " means the Colonial Treasurer for the time being of the said colony, and includes any member of the Executive Council for the time being acting as or for the Colonial Treasurer, "Treasury Eegulations " mean any regulations made by the Governor in Council and for the time being in force under " The Public Eevenues Act, 187&.91." " The Bank " means the Bank of New Zealand incorporated in New Zealand under the provisions of the --T-fae New Zealand Bank Acts 1861 to 1891, and includes the feanch office of the oamo Bank carrying on business in London. Whenever in this agreement any officer is referred to by the title of his office, or any account is mentioned, it shall be understood to mean an officer or account of a like name, as the case may be, mentioned in " The Public Eevenues Act, 18%%91," or the Treasury Eegulations aforesaid. As to Deposits. 2. All moneys paid to the Government shall, subject to the terms of this agreement, be deposited with the Bank : Provided — (1.) That whenever the balance at credit of the Public Account or the New Zealand Public Account, either alone or taken together, shall exceed three hundred thousand pounds, the Treasury shall at any time bo at liberty to invest such excess in interest-bearing securities, or in fixed deposit with any bank ; and (2.) Further, that the Treasury shall have the like powers of investment in respect of all or any part of the moneys at credit of the Eeceiver-General's Deposit Account, the Post Office Account, the Government Insurance Account, the Public Trustee's Account, or other special accounts of the Government. 3. The Bank shall at each of its branches accept deposits of any amount for credit of the Public Account the Eeceiver-General's Deposit Account, the Post Office Account, the Government 2—B. 11.

BANKING BUSINESS OF THE NEW ZEALAND GOVERNMENT (COPY SHOWING THE ALTERATIONS MADE BY THE EXISTING AGREEMENT, AND COMPARED WITH THE FORMER AGREEMENT DATED 28th APRIL, 1880).

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Insurance Account, the Public Trustee's Account, and such other accounts as may be required ; and shall, for every sum deposited, give a receipt in regulation form, and in the office pass-book of the officer depositing the same. But special sums accruing from the sale of securities or otherwise, and not forming Dart of the consolidated revenue of the colony, shall be lodged only at the Wellington or London office of the Bank, unless the Bank shall consent to receive them at some other office. 4. All deposits for credit of the Public Account, or the Government Insurance Account, made at any of the branch offices of the Bank in the colony, shall in each case be transferred to the credit of the Public Account, or the Government Insurance Account, at Wellington on every Saturday, after the close of business, unless for special and exceptional reasons such transfers shall require to be made on some other day, in which case such transfers shall be made as the Treasury shall direct. 5. All deposits for credit of the Eeceiver-General's Deposit Account, the Post Office Account, or the Public Trustee's Account made at any of the branch offices of the Bank in the colony shall be transferred daily to the credit of the respective accounts at Wellington. 6. All moneys transferred as required by clauses 4 four and 5 five shall forthwith, on receipt of advices, be credited to the Public Account, the Eeceiver-General's Deposit Account, the Post Office Account, the Government Insurance Account, or the Public Trustee's Account, as the case may be, and the credit balance of these accounts as a whole shall thereupon bear interest at the rate herein agreed upon. 7. The Bank shall, at its London branch, receive deposits of any amount for credit of the New Zealand Public Account, the Foreign Imprest Account, or such other accounts as may be required, and shall give receipts for all such deposits in such form as may be prescribed by the Treasury. 8. All moneys at credit of the New Zealand Public Account, the Foreign Imprest Account, or the account of any person acting as an Agent for the Government in London shall bear interest at the rate herein agreed upon. 9. The Bank shall, on demand made by the Treasury, transfer to the Public Account, the New Zealand Public Account, or the Post Office Account any moneys standing to credit of the official account of any public officer, either in the colony or in London, except moneys at credit of the Government Insurance Account, the account of the Commissioners of the Public Debts Sinking Funds, or the Public Trustee's Account. 10. The Bank shall furnish to the Eeceiver-General, to the Postmaster-General, to the Government Insurance Commissioner, the Public Trustee, or to such other persons, respectively, as it may in that behalf be directed in accordance with the Treasury Eegulations, such periodical statements of the deposits made at its several branches in the colony and in London as the Treasury, the Post-master-General, or the Controller and Auditor-General, or Audit Officer in London may respectively require. As to Eemittanoes. 11. The Bank shall make all remittances of public money within the colony at a charge of one ahUling ton ovory hundred pounds by course of post free of charge. Such remittances shall be held to include all remittances by draft or otherwise (exeopt hot worn Gftief—PestHiaetere-aßd-Sttb-P-estaaetes), and all sums transferred to or from Wellington by or to other branches of the Bank, ea— aee<»aftt-e£-fee-P-üblic Aceeunt, the Public Account Pinburaegt&nt Accountj-fte—Beeeiyer— Dopeeit—A-eeount, tlio Peat—Office Aeeeastj-the- Govornmeßt-InGuranoo Improatoes-aeeaaat^-ei^fae-account-el-tfae-Gefflmsswaefs-ef—tk-e P»We^ekte-Siakffig-&ifi49 ; As TO DISBUBSEMENTS, ETC. 12. The Bank shall transfer by course of post, free of charge, from the Public Account at Wellington such moneys as may be required, and shall place the same to the credit of the Public Account Disbursement Account at such of its branches as may be directed by the Treasury, to meet the cheques of the Paymaster-General drawn on such branches, and shall pay such cheques in accordance with the form of advice transmitted in each case and with the Treasury Eegulations in that behalf. 13. The Bank shall transfer, free of charge, from the Government Insurance Account, ep-tke gafeke-feaatoo'o Accouat; such moneys as may be required, and shall place the same to the credit of the Government Insurance Disbursement Account Putdie Truotoo'o Dioburoomont Aeeeunt, ac tho eaoo may-fee; at Wellington, to meet the cheques drawn by the Government Insurance Commissioner, ef _y le _g a ky e _ip f tis4ee; and shall pay such cheques at its branches, in accordance with the form of advice transmitted in each case and with the Treasury Eegulations in that behalf: 14. The Bank shall transfer by course of post, free of charge, from the Post Office Account to credit of the deposit accounts of Chief Postmasters at its branches, such moneys as from time to-time may be required by the Postmaster-General to be so transferred by cheque drawn by him on the Post Office Account at Wellington. 15. The Bank at any of its branches shall subject only to tho cfaargo aaontionod in claueo 11,, honour, free of charge, sight-drafts of the Postmasters, drawn in accordance with the Treasury Eegulations on the Postmaster-General at Wellington. 16. The Bank, on being provided with requisite funds, shall, at any of its branches, make payments to and take receipts from the ordinary creditors of the Government within the colony, without charge, ether-ftan for romittaae% except when such payments involve the transfer of money by telegraph, when they shall be made upon and subject to the terms of clause twenty-seven hereof.

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17. The Bank, on being provided with the requisite funds, shall, at any of its branches, pay coupons for interest or the principal of debentures payable by the Government within the colony, without charge othor than for romittanoo. 18. The Bank, on being provided with the requisite funds at its London office, shall at that office make payment to and take receipts from the ordinary creditors of the colony in London without charge. 19. The Bank shall, at any of its branches, receive deposits for credit of the Imprestees of the Government, or for credit of special deposit accounts of officers of the Government, and shall honour the cheques of such Imprestees or officers, as the case may be, and furnish such periodical statements of account as the Treasury Regulations may require or the Treasury or Controller and Auditor-General may direct. 20. The Bank shall furnish to the Paymaster-General, and the Government Insurance Commissioner, and tho Public Truotoo such periodical statements of the transfers to and the operations on the Public Account Disbursement Account at its several branches, and the Government Insurance Disbursement Account and Public Truatoo'n Diobursemont Account at Wellington as these officers may require. The Bank shall also furnish to the Treasury, the Controller and AuditorGeneral, or such other person as may be authorised by either of them to demand the same, such statements of any official account opened by or for or on account of any officer of the Government as may at any time be required. As to Chaeges and Interest. On Deposits. 21. The Bank will allow interest on deposits at the rates following, that is to say,— (1.) On the daily balances of the Public Account, the Receiver-General's Deposit Account, the Post Office Account, the Government Insurance Account, the Public Trustee's Account, and the account of the Commissioners of the Public Debts Sinking Funds at Wellington, when the balances of those accounts as a whole are under eighty thousand pounds, four per cent. (2.) When the balances of those accounts as a whole exceed that amount, three per cent. (3.) Provided that whenever the balances of the accounts mentioned in subsection (1) of this clause, exclusive of all sums deposited for fixed periods, shall exceed four hundred thousand pounds, the Treasury or the Bank may require a reconsideration of the rate of interest to be paid thereon. In the event of the Treasury and the Bank failing to agree thereon, the Bank may refuse to pay interest on any sum so in excess, and the Treasury may thereupon deal with such excess in the manner provided in clause 3 two of this agreement. (4.) On the daily balances of the New Zealand Public Account and the Foreign Imprest Account of the New Zealand Government in London, one and a feaH quarter per cent, less than the Bank of England rate. Interest on sums deposited to be reckoned from the day subsequent to each deposit: Provided that no interest shall be paid under this provision exceeding the rate of five per cent., and that the Bank shall have the option of declining to pay interest on balances in excess of four hundred thousand pounds. (5.) On fixed deposits made — At the Bank at Wellington, or at any of the branches of the Bank in the colony,— At such rates as may be mutually agreed upon from time to time. At the London branch of the Bank, up to three hundred thousand pounds,— For six months, three per cent.; For twelve months, four per cent. On Advances. 22. The Bank will be prepared to advance to the Government in amounts not exceeding two hundred thousand pounds per month — (1.) On the security of Treasury or Dofioioncy Bills at par to any amount not exceeding one hundred thousand pounds. Such advance to be made at the option of the Government either in the colony or in London, but not in both. (2.) On New Zealand securities quoted on the London Stock Exchange, or on debentures for any loan authorised to be issued and which will be so quotable, with power to remit and hypothecate the same, any amounts, either in the colony or in London, which together shall not, in the whole, exceed three hundred thousand pounds. But the Bank shall not be required to advance any amount exceeding ninety per cent, of the nominal value of a frFe/owr-pet-cent. loan, and in the like proportion for a loan bearing a rate of interest other than ft*e four per cent. 23. The Bank will make advances as above referred to at the rate of interest following; that is to say,— In the colony, at si* four and one-half per cent. In London, at £w/owr per cent.; or, in case the Bank of England rate is in excess of lew three per cent., then at the rate of one per cent, above the said Bank of England rate. 24. Whenever the Government has obtained advances from the Bank under this agreement, the Government shall not be at liberty to place any sums of money on deposit with other banks so

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long as such advances remain unpaid, and any sums previously so deposited shall, on maturity of the deposits, be placed with the Bank, if the Bank so requires, at the rates then current for deposits of a like class. 25. The Government shall not obtain advances from or through any other bank, except upon failure to obtain the amount required from or through the Bank at a rate of interest not exceeding that specified in clause 33 twenty-three, or such other rate as the Treasury may deem reasonable. But this provision shall not apply to any advances which the Government may obtain in London. On Remittances. 26. The Bank will sell its drafts to the Government, — (1.) On London, at ono hundred and twenty ninety days' sight at par, or at other currencies at one-quarter per cent, concession on the rates offered to the public, but not below par. The Bank shall not be required to sell drafts at a shorter currency than sixty days' sight: (2.) Drawn in London on the Bank in the colony, at one-quarter per cent, concession on the rate charged to the public. (3.) Drawn on any place within the Australian Colonies where the Bank is represented,— If payable at fifteen days' sight, at par; If payable on demand, at one-half por cent, ooneoooion on of the rate charged to the public. 27. The Bank will make remittances by telegraph, wJien so required by the Treasury, at the rates following ; that is to say,— (1.) Within the colony, at twe one shillings per cent, jaefaoivo of ohargoo for romittasee undor clauoo 11. (2.) From London to the Colony, — If payable at three days' sight, at one per cent.; If payable at fourteen days' sight, at three-fourths per cent. (3.) From the Colony to London, — If payable at three days' sight, at twe one and a half per cent. ; If payable at fourteen days' sight, at twe one and a quarter per cent. : Provided that, without the consent of the Bank, no remittance shall be made by telegraph exceeding the amount of twouty-_/tue thousand pounds in any one month. 28. The Bank will purchase bills of the Government drawn on London at thirty days' currency at par, at other dates at one-quarter per cent, concession on the rates offered to the public. 29. The Bank shall not be bound to negotiate any drafts on London other than drafts payable on demand drawn on its London office when there are funds to the credit of the New Zealand Public Account, or drafts drawn on the Crown Agents for the Colony which the said Agents have signified to the Bank in London their agreement to accept, nor for any amount exceeding in any month the sum of two hundred thousand pounds. 30. Drafts on the colony shall be negotiated by the Bank only at its own option. As to Payment op Debentures and Interest. 31. Exclusive of charges for remittance, the Bank will, if required, pay coupons for interest payable in Australia at one-quarter per cent; in London, at one-eighth per cent. 32. Exclusive of charges for remittance, the Bank will, if required, pay the principal moneys due on debentures or Treasury bills in Australia or in London at one-quarter per cent. Miscellaneous Provisions. 33. This agreement shall come into operation on and after the first day of April, one thousand eight hundred and ninety-three, and may be terminated by either the Treasury or the Bank at any time on giving six calendar months' notice in writing to that effect. Any such notice, if given by the Treasury, may be left at the banking-house of the Bank at Wellington. If given by the Bank, may be left at the Treasury Offices in Wellington. 34. Nothing in this agreement shall be deemed to prejudice any right or power which the Governor in Council or any Commissioners appointed by him may have under the fifty-tbwdsiartA section of " The Public Eevenues Act, 18?§91." Nor shall prevent the Treasury from withdrawing all or any part of the moneys lying to the credit of the Government in the Bank within the colony should it at any time consider the position of the latter unsafe, and upon an Order in Council being obtained for that purpose. 35. The Bank shall not in any manner assign or dispose of this agreement, or any benefit or advantage thereof, wholly or in part, to any person or persons or any corporate body, without the written consent of the Treasury for that purpose first obtained. In witness whereof the said Harry Albert Atkinson, John Ballance, as such Colonial Treasurer as aforesaid, hath hereto set his hand, and the Common Seal of the Bank-ef Now Zealand hath boon hereto affised? William Turton Holmes, the General Manager of the said Bank in New Zealand, under and by virtue of a certain Power of Attorney bearing date the fourth day of November, one thousand eight hun-

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dred and ninety-one, and granted to him by the said Bank, hath signed these presents on its behalf, the day and year bei=eia first herein mentioned. Signed by the said Harey Albert Atkinson," John Ballance, in the presence of {Signed.) Assistast-Oeatrollor and Audited " '' Jas. B. Heywood, Secretary to the Treasury, "Wellington, gzke. -Oemmea— Seal of the Bank of Now" Zealand was hcfete-ailsed-by (Signed.) To-w* act \A l-t "11 jf> yyi flf\T| . otxiii"" t T ill i tin j. rjviij J. C. Firth,-Bieeetem-ei-felie-said- Bank, in fee presefiee-ef- (I*Bo j._g ¥ ew»i»g T (Signed.) Gontlcmaßj \- The Bank of Neiv Zealand, EpseH% By its Attorney, j W. T. Holmes. Signed by the said William Turton j Holmes, as the Attorney and j General Manager of the Bank of Neiv Zealand, in the presence of (Signed.) A. E. Mills, Bank Clerk, Auckland.

THE SOUTH AUSTRALIAN GOVERNMENT AGREEMENT WITH THE ASSOCIATED BANKS.

Memorandum of Agreement made this thirtieth day of December, one thousand eight hundred and ninety-two, between the Honourable William Benjamin Bounsevell, Treasurer of the Province of South Australia, herein contracting for and on behalf of the Government of South Australia, and who, with his successors in office, is hereinafter called the Treasurer of the said Province, of the one part: and the Bank of Australasia, the Union Bank of Australia (Limited), the National Bank of Australasia, the English, Scottish, and Australian Chartered Bank, the Bank of Adelaide, the Bank of New Zealand, the Commercial Bank of Australia (Limited), the Federal Bank of Australia (Limited), hereinafter called the Associated Banks, of the other part, whereby it is agreed as follows: — 1. The Associated Banks shall be the sole bankers of the South Australian Government in the Province of South Australia, and also in London, except as regards the floating of loans, payment of principal and interest in connection with the Public Debt, the Agent-General's current working account, and deposits in excess of £800,000. 2. The general banking account in Adelaide hereinafter called the Government Account, which shall comprise all moneys to the credit of Her Majesty's Government, and not being departmental accounts, shall be divided as nearly as possible in equal proportions amongst the Associated Banks; and the Government departmental accounts, and all other business, both in Adelaide and London, with the exception of the Agent-General's working account hereinbefore mentioned, shall be distributed on a similar principle; the departmental accounts to be kept with each or any of the Associated Banks as may be mutually agreed between them, and, until such agreement is notified to the Treasurer, to be continued as at present. 3. The Associated Banks shall allow interest on the monthly minimum credit balance in even thousands of the Government Account in Adelaide, at the rate of three pounds per centum per annum; such interest to be credited on thirtieth of June and thirty-first of December in each year; 3—B. 11.

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no interest to be allowed on any amount exceeding £120,000 with each bank, and should the balance in any bank fall below £5,000 no interest to be allowed on such balance for the month in which it is below £5,000. 4. The amount to the credit of the Government Account at each Bank in Adelaide shall not be reduced by a greater sum than £12,500 during any one month, but an additional £12,500 may be withdrawn from each bank during any three months of the currency of this agreement, on the Treasurer giving thirty days' notice. 5. The Associated Banks shall receive at and transmit to places within the Province of South Australia, where they have branches (Northern Territory excepted), moneys on Government account free of exchange. 6. The Associated Banks shall sell demand drafts on Government account on the other colonies where they are represented at one-eighth per cent, premium, and shall purchase from the Government demand drafts on the other colonies where they are represented—viz., on Victoria and New South Wales, at one-eighth per cent, discount, and on Queensland, New Zealand, Tasmania, and Western Australia, at one-quarter per cent, discount. 7. The Associated Banks shall sell drafts on London to the extent of the requirements of the Government, at sixty days' sight, at one-eighth per cent, better for the Government than the banks' current rate of the day to the public. 8. The Associated Banks shall purchase Government drafts at the option of the Treasurer at sixty days' sight, not exceeding £30,000 each per month, unless otherwise arranged, drawn against funds in London at one-eighth per cent, better for the Government than the current rates at which drafts for those terms are purchased by the Associated Banks from the public ; the whole of the drafts of which the Government may have the disposal to be equally distributed amongst the Associated Banks, the proceeds of all such drafts to go to the credit of the Government Account. 9. Advances shall be made, if required, by each of the Associated Banks to the Government in London to the amount of £20,000 without security, on receipt of forty-five days' notice to be given in Adelaide; interest on such advances to be paid at the rate of 1 per cent, above the Bank of England rate of discount, but not to be less than 4 per cent, per annum. 10. Deposits up to £100,000 shall be taken by each of the Associated Banks in London; interest on such deposits to be allowed at 1 per cent, below the Bank of England rate of discount, but not to exceed 4 per cent, per annum. Withdrawals to be subject to fourteen days' notice. The Associated Banks to have the first offer of any sums beyond £100,000 in each bank. 11. Each bank shall be answerable only for its own acts and defaults, its liability under this contract being limited to its share of the business. 12. This agreement to be in substitution of the agreements dated thirtieth of January, one thousand eight hundred and ninety, and sixteenth of June, one thousand eight hundred and ninetytwo, to take effect on and from the first day of November, one thousand eight hundred and ninety two, and to be terminable on six months' notice at any time from either side. WE B. BOUNSEVELL, Treasurer. Witness to the signature of the Honourable William Benjamin Eounsevell, Treasurer—Hene* F. Peacock, Chief Clerk. For the Bank of Australasia, H. S. St. PAUL, pro Manager. For the Union Bank of Australia (Limited), JAMES KIDD, Acting Manager. For the National Bank of Australasia, JOHN G. ADD!SON, Acting Manager. For the English, Scottish, and Australian Chartered Bank, C. T. COWLE, Manager. For the Bank of Adelaide, JOHN SHIELS, Manager. For the Bank of New Zealand, E. W. KANE, Manager. For the Commercial Bank of Australia (Limited), E. JONES, Manager. For the Federal Bank of Australia (Limited). WILLIAM NEILL, Manager. Witness— J. F. Hambidge, Secretary Associated Banks. Approximate Cost of Paper.— Preparation, not given; printing (1,300 copies), £7,

By Authority: Samuel Costall, Government Printer for the time being, Wellington.—lB93. Price 6d.~]