B.—No. 2.

FURTHER PAPERS RELATIVE TO

8

See Journals, 186-1, page 58, No, 9—Besolution 1,

Enclosure to No. 8. MEMORANDUM by the Hon. the Attorney-General. " The New Zealand Loan Act, 1863," empowers the Governor to appoint one or more person or persons to be an agent or agents for the purpose of raising and managing the loan proposed to be raised under that Act. It also gives authority to such agent or agents to borrow by bonds, debentures, or otherwise, a sum not exceeding Three Millions sterling. The provisions of the Act apply to securities so created, and to no others. My attention has been drawn to the instrument, dated the 5th January, 1864, by which Mr. Header Wood was appointed, by the Governor, the agent for raising the loan ; aud to the instrument dated the 2Sth September, 1864, by which Mr. Wood delegated his authority, to the extent of £500,000, to Messrs. Murdoch and Kennedy. I observe also in the latter instrument, a recital of a similar delegation of authority, to the extent of £250,000, to the Crown Agents, Messrs. Julyan & Sargeaunt. In my opinion the Loan Act does not authorise Mr. Wood to delegate his powers ; the Governor alone has power to appoint agents for raising the Loan. The appointment of Mr. Wood as agent should be revoked, and a new appointment made. Messrs. Murdoch and Kennedy, as well as the Crown Agents, should be apprised of the view taken by the Colonial Government as to the insufficiency of their authority. The Colonial Treasui'cr will point out what other steps should, in his opinion, be taken for giving practical effect to former engagements of the Government, bearing in mind that the loan, or any part thereof, cannot be raised except by agents authorized by the Governor. And also that by " The Rate of Interest Act," and the Order in Council about to be issued under the same, the rate of interest will be raised to 6 per cent., and no debentures can be sold under par. Henry Sewell.

No. 9. The Hon. the Colonial Secretary to the Crown Agents. Gentlemen, — Colonial Secretary's Office, Auckland, 2nd January, 1865. I transmit to you copies of Resolutions passed by the House of Representatives relative to the offer of the Imperial Government to guarantee one million of the Three-Million Loan of 1863. 1 You will perceive by these Resolutions that, for the reasons therein stated, the Colony have declined such offer. I have, &c, Walter Mantell, (for the Colonial Secretary.) Messrs. Julyan and Sargeaunt, Crown Agents for the Colonies, Spring Gardens, London.

No. 10. The New Zealand Government AaXHT to the Hon. the Colonial Secretary. Office of the New Zealand Government Agency, Sir,-— 8, Adelaide Place, King William-street, London, E.C., 25th November, 1864. Since I had the honor to address you on the 20th September ultimo, the condition of the money market is somewhat easier, the minimum Bank rate of discount having been reduced from 9 to 8 per cent, on the 10th instant, and again from 8 to 7 per cent, yesterday. The reductions have had the effect of reviving financial operations. Of those recently brought forward may be mentioned the Egyptian loan for £5,701,200, in 7 per cent, bonds of £100 each, the subscription price for which was 03, the bonds to be paid off in 15 years at par. Of this loan, £2,000,000 was privately subscribed, and the issue of the remainder to the public was successfully floated by Messrs. Framing and Goschen. At this moment there is submitted under the auspices of eminent banking and financial firms, £2,800,000 debenture certificates of the Atlantic and Great Western Railway (American). These certificates will be issued at £90 for £100, and are to be redeemed at par at the end of three years, the interest at 8 per cent, per annum, being guaranteed by the Consolidated Bank, late Messrs. Hankey's and Messrs. Heywood, Kennard's & Co. Of this loan, £1,200,000 has been privately subscribed, and it may be observed that the interest, although nominally 8 per cent., is equivalent to more than 12 per cent. The Government of Queensland 6 per cent, debentures for £270,000, unsuccessfully offered by the Union Bank of Australia months ago, have now been taken up at par, carrying interest from date of issue. The South Australian Banking Company, during the past month, offered to the public £150,000 6 per cent, debentures, of the Provincial Government of Otago, at the price of £80 for £100 bonds. The New Zealand 5 per cent, debentures, on the 22nd instant, were, for the first time, marked on the Stock Exchange at 88 to 90. Transactions have taken place in the 6 per cent., at 101 to 105. The 5 per cent, debentures of the Government of Canada varied during the month from 82 to 901, the 6 per cent, from 98 to 101. New South Wales 5 per cent, remain at 95. Although transactions have taken place during the past month in all these securities, the amount of business done is quite nominal, and to attempt to realise to any extent could not be effected, without submitting to considerably lower prices. The Government may gather from these remarks information which I trust may be interesting, and of service. I have, &c, The Hon. the Colonial Secretary, Auckland, New Zealand. John Morrtrov