A LOAN OF £3,000,000 STERLING.

B.—No. 2.

9

No. 11. The Crown Agents to the Hon. the Colonial Secretary. Offices of the Crown Agents for the Colonies, Spring Gardens, London, S. W., 26tli November, 186f.. Sir, — New Zealand 5 per Cent. Loan. In continuation of my letter of the 26th ultimo, I have now the honor to inform you that on the 21st instant a further sum of £207,266 13s. 7d. was received by the Crown Agents for the colonies, on account of the above Loan, from the " Credit Mobilier, Limited." This sum, added to the small cash balance previously in hand, increased the total amount standing to the credit of the New Zealand Government in the books of this office to £208,781 5s. 8d., which was immediately disposed, of as follows: — Paid to the Bank of New Zealand, £149,000 ; making the total sum paid to that establishment,. up to the present date, out of the proceeds of the loan, £572,000. To Mr. Morrison, for the purchase of small arms, £14,000; making the total sum paid on that account, up to the present date, £21,000. To the Crown Agents, for brokerage and commission, £1269. Placed on deposit, at seven days' call, with the London Joint Stock Banking Company, at 5 per cent, interest, £44,000. This latter sum is comprised of —■ £20,000 reserved for the payment of interest falling due on debentures on 15th January next. £10,000 appropriated to the purchase of ordnance and ammunition, in respect of which the Crown Agents are in communication with Major Millward, of the War Office. £3,000 to pay for telegraphic materials, contracted for under Mr. Gisborne's inspection. £3,780 on account of emigration. £7,000 to be paid to Mr. Morrison, on " small arms" account, during the month of December ,- and £220 on account of contingent expenses. The payments to the Bank of New Zealand having exceeded £500,000, the instrument granted by Sir George Grey to three of the directors of that Bank, empowering them to raise that sum on debentures, has been formally cancelled, and is now in the possession of the Crown Agents for the colonies. The telegraph materials, according to the agreements entered into, will be ready for shipment about the end of December nest. "With respect to the negotiation of any portion of the second million of the 5 per cent. loan,, although the market shows signs of improvement, and the Bank rate of interest has been reduced to 7 per cent, during the present week, yet the time has not yet arrived for effecting further sales of your debentures. The great bulk of the last issue is still in the hands of those who speculated in it, and' there is at present little or no demand for the debentures at any price. They were marked in the official list of the Stock Exchange on Tuesday last for the first time. The sale of the Otago 6 per cent, debentures (under strong assurance from the vendors thai theguarantee of the New Zealand Government will shortly be extended to them) at a price which will— including 2 per cent, of accrued interest—pay the purchasers nearly 8 per cent., has seriously depreciated the 5 per cent, loan of your Government, and the effect cannot fail to be prejudicial to ournext operation in that loan. It appears to the Crown Agents that the interests of the Provincial, no less than those of the General Governments, might be promoted by making such arrangements as would prevent any competition of this nature in the negotiation of their several loans in this market. To do this effectually, it would appear advisable that nil New Zealand loans, General and Provincial, should be brought before the public through one and the same channel. Whether that channel had better be this department or not, it is for the New Zealand Government to determine. The Crown agents simply direct your attention to the point as one seriously affecting your interests, and therefore, it. would appear to them, worthy of the consideration of the New Zealand Government. I have, &c, The Hon. the Colonial Secretary, Ac., &c, New Zealand. Penrose G. Julyan. No. 12. The Manager, Bank of New Zealand, to the Hon. the Colonial Treasurer. Sir, — Bank of New Zealand, Auckland, 27th January, 1865. By the mail steamer, which arrived yesterday from Sydney, I received letters from ourr Inspector, Mr. Murdoch, and from the Oriental Bank Corporation, Sydney, respecting the floating of £200.000 in Australia under " The Debenture Act. 1864 ;" and I beg to quote for your information, extracts therefrom, viz.: — Extract from letter from D. L. Murdoch, dated Sydney, 17th January, 1865. ': I arrived here on the 11th instant, and leave to-day for Melbourne. I find money exceedingly tight here, and am not at all sanguine about selling any considerable portion of the 8 per cents, in this market; there will be tenders for a few thousands, but not more. The news by the mail is reassuring, and may assist me in Melbourne, where I hope to find money more abundant than here,, though the accounts from that quarter are not encouraging. The tenders are returnable at Melbourne on 23rd instant. I found I could not get the debentures engraved here in time to take them with me, and therefore forwarded to Melbourne by steamer on 12th the form and an order for all required both here and in New Zealand. I will send you the proportion for the £50,000 as soon as completed." I have, &c, A Kennedy, The Hon. the Colonial Treasurer. General Manager. C