PAPERS RELATIVE TO INTEREST, &c, GUARANTEED LOAN.

B—No. 2

12

Zealand for a payment to him by the Bank's Manager at Auckland of £10,000 on 15th November, 1860, on account of the Guaranteed Loan to the above Colony under the Act 20 and 21st, Victoria, cap. 51; and to state that in lieu thereof, the Directors are willing to receive the Debentures remaining on hand as the balance of series E. after coupons for the expired interest shall have been cut off, and t© settle in account with the Government of New Zealand for whatever subsequent interest shall be due to or by the Bank, such arrangement being in fulfilment of that already intimated by my letter of 31st December last. I have, &c, The Secretary Her Majesty's Treasury, H. W. D. Saunders. Whitehall.

Sub-Enclosure 2, to Enclosure in No. 6. copy of treasury minute dated 5th march, 1861. Acquaint the Directors of the Union Bank of Australia with reference to this letter, that their Lordships will instruct the Governor and Deputy Governor of the Bank of England, to deliver to them Debentures of the Guaranteed Loan to New Zealand to the amount of £10,000, being tho balance of Series E., dated 1st October, 1859, minus the Coupons for the Interest due to 31st March and 30th September 1S6<\ in return for the sum of £10,000 paid by the Bank's Manager at Auckland, to the Colonial Treasurer on the 15th November, 1860, upon the understanding that the Union Bank will settle in account with the Colonial Government in regard to the interest that may be due to or by the Bank, in conformity, with the principle -already laid down in the previous correspondence, relating to the delivery of the Debentures for this Loan. Write to the Governor and Deputy Governor of the Bank of England with reference to the correspondence noted in the margin, and request that they will deliver to the Union Bank of Australia Debentures to the amount of £10,000 of the Guaranteed Loan to New Zealand being the balancej now in their hands, of the Debentures, Series E , dated 1st October, 1859, in return for a corresponding sum that has been paid by the Bank's Manager at Auckland to the Colonial Government of New Zealand. Desire that they will detach from these Debentures the Coupons for the Interest due on the 1 st April and 1st October, I860, the Union Bank having consented to take the Debentures on those conditions.

No. 2957.

' Treasury to Bank, 20th April, 1860, Treasury to Bank, 14th May, 1860. Treasury to Bank, 10th January, 1861.