3

B—No, 2

No. 1. copy of a DESPATCH from sir g. c. lewis, bart., to governor gore browne, c.b. Downing Street, 10th July, 1860. Sir,— I have to acknowledge the receipt of your Despatch No. 20, of the 25th February last, enclosing a Commissariat Receipt for the sum of £12,200, being the amount of Interest and Sinking Fund on account of the Guaranteed Loan to New Zealand, and I transmit to you for your information and guidance a copy of a letter from the Lords Commissioners of the Treasury, to whom I caused a copy of your Despatch to be referred in transmitting the receipt to their Lordships. I have, &c, G. C. Lewis. Governor Gore Browne, C.8., &c, &c, &c.

Enclosure in No. 1. MR. ARBUTHNOT TO SIR F. ROGERS. Treasury Chambers, 16th June, 1860. Sir,— With reference to your letter of the 12th ultimo, certifying the receipt of £12,200 on account of the New Zealand Guaranteed Loan, I am directed by the Lords Commissioners of Her Majesty's Treasury to transmit to you for the information of the Duke of Newcastle, and in order that the same may be communicated to the Governor of New Zealand, a statement of the remittances 1 through the Treasury Chest in New Zealand on account of the Interest and Sinking Fund of the Guaranteed Loan to that Colony, showing the purposes to which the several sums remitted have been applied. A statement of the sums due for the Sinking Fund and of the Investments that have been made 2 from time to time on that account. ~ " — With reference to the enquiry of the Colonial Treasurer in regard to the period at which Investments should be made on account of the Sinking Fund, their Lordships would refer to the New Zealand Loan Act, 1856, and to the Imperial Act, 20 and 21 Vie, cap. 51, directing the annual payment from the general Revenue of the Colony of six per cent, per annum on the total of the principal from time to time borrowed ; —of which four per cent, is required for Interest, and two per cent, for the Sinking Fund, Their Lordships are of opinion that the amount due from time to time for the Sinking Fund should be remitted at the sam" time as the amount due for Interest, and they would request that in making these remmitiances, full particulars may be given, shewing the sums sent for the Interest, the Sinking Fund, and the Commission, which latter should amount to one half per cent, on the amount payable by the Bank for Interest. I am further to state that the amount due for the Sinking Fund shall be calculated from the same date from which Interest became payable, so as to allow of the investment of the proper amount of Sinking Fund during the whole period of thirty years to which the Debentures extend. I am, &c, G. Aebuthnot. Sir F. Rogers, Bart., &c, &c, Stc.

PAPERS RELATIVE TO THE INTEREST AND SINKING FUNDOFGTJAKANTEED LOAN.