B. -No. 2

Extract from the Times of 21th June, 1864. It is understood that New Zealand Government debentures for £1,000,000 are about to be offered to the public by the Crown Agents for the Colonies. This sum forms the first instalment of a loau ol £3,000,000, authorised to be raised by the Colonial Legislature for defraying the cost of tho present rebellion, for the introduction of settlers, and for other public purposes. A Bill is now before Parliament by which it is proposed to extend the guarantee of the Imperial Government to one-third of the whole loan, or £1,000,000 sterling, and this portion is to be applied exclusively to military defence. The other two-thirds aro secured ou the general revenues of the colony, and it is a million of this latter portion which is now about to be offered to public competition. The debentures bear interest at 5 per cent., and a.c redeemable in 50 years by the operation of a sinking funel of 1 per cent., the principal and interest being payable by the Crown Agents in London.

The Panama Contract and the New Zealand Loan Bill. To the Editor of tho Standard. Sir,—Mr. Crosby Ward, tho Postmaster-General, and at that time a member of the government of New Zealand, was scut home instructed to negociate for the conveyance of the mails from England to New Zealand and Australia via Panama. With the legal aid, and under'the wing of the PostmasterGeneral of Great Britain, he made an agreement, exact and well considered, in whicii no legal formality seems to have been omitted. Tho Panama Steamship Company, with which Mr. Ward contracted, invited and received applications for shares, and entered into arrangements (which must bo fulfilled) to build fitting steamers to carry the contract out efficiently. I subscribed £1000 to tho capital, not for a moment doubting the good faith of the New Zealand Government ; but, to my surprise, I learn that Mr. Ward and his contract are repudiated by his employers, and that the ministry of which ho was a member, has been outvoted and turued out. British Colonial Governments, above all others, must keep good faith, if they wish for creelit. In my judgment it will be well to defer passing till next session the New Zealand Loan Bill, by which our Government is to guarantee interest on £1,000,000, and in the meanwhile colonial integrity may find its level. I for one am not content to pay out of imperial taxes the interest on this loan, nor hold my tongue, while the public is invited to subscribe for £3,000,000, and become hereafter, as I am now, A Disappointed Subscriber. P.S.—I enclose my card. June, 1864.

No. 18. THE nON. THE COLONIAL TREASURER TO TIIE nON. THE COLONIAL SECRETART. Westminster Palace Hotel, London, July 13th, ISO 4. Sir, — I have the honour to report that yesterday the tenders for the first instalment of £1,000,000 of the New Zealand Loan were opened at the offices of Messrs. Julyan & Sargeaunt. The amount tendered for was £0,100, the amount at and above the minimum of 90 was £3,600. In fixing the minimum we were guided by the state of the money market on Saturday the 9th instant, whicii was as follows : — India 5 per cents. . . , . . 104 5 0 New South Wales ditto . . . . 97 10 0 Canada 5 per cents. . . . . . 88 10 0 New Zealand 6 per cents. .... 106 0 0 The ruling rates of interest for money were : — Short paper (best) ... 5 f Six months Bank Bills . . 6-J Ditto Trade Bills . . . 7 * Joint Stock Banks give 1?,- per cent, on deposit. The fact also was taken info consideration that notwithstanding the comparatively favourable stale of the market, money was not flowing towards Colonial Investments ; a few clays ago the Union Bank of Australia endeavoured to negociate a 0 per cent. Loan of £tOO,OOO for the Queensland Government at £103 12s. Od. Not more than one third of tho amount was subscribed and under £30.000 was placed. We thought ii we fixed tlie minimum lower than 90 that probably the Loan would fill up no better, whilst it would at a future time be difficult if not impossible to sell at a higher price should the market become suddenly more favourable for colonial securities. The number of companies of all kinds and descriptions constantly being brought forward absorb all the available capital, and the inducements offered by them of high interest have had the effect for the present at least, of shutting colonial securities almost altogether out of the market. It happened too, most inopportun ly for this Loan, that a few days ago a telegram was received at the War Office, and published in every English paper, of a sad reverse to our troops at Tauranga accompanied with very serious tess of life. This news has had a most depressing effect. The telegram stated the disaster iv its worst form, unaccompanied with any explanation of its cause or its probable effect; the public begin to consider that the New Zealand war is interminable, and no doubt tho impatience shown in consequence of the state of things in New Zealand affects the credit of the Colony. Under those circumstances 1 have thought it hoi leu-to instruct Messrs. Julyan and Sargeaunt to ascertain upon what terms advances can bo had upon the Debentures, than to reduce the minimum and so tempt speculators to buy at a price which would be a great pecuniary sacrifice to the Colony. I have also instructed them up to the 25th instant to oiler the Debentures at the minimum fixed iv the first

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