D—No. 4.

Enclosure 2 to No. 30. The Superintendent, Auckland, to the Inspector of the Bank of New Zealand. Sin, — Superintendent's Office, Auckland, 19th November, 1864. In reply to your letter No. 4-10, of date 18th instant, stating that, on condition of being furnished with the debentures, and coupons attached, within one month of the receipt of the forms from London, the Bank of New Zealand will advance the £50,000 required in excess of the £100,000 which can be demanded under the agreement of Bth July, 1863, it being understood that the said amount of £50,000 is to be paid to the Commissioners for Public Buildings, and by them placed on fixed deposit for twelve months with the Bank of New Zealand, the Commissioners being at liberty to transfer from such deposit-account the sum of £15,000, in sums of not less than £5000 each, and the Bank to allow interest on the balance of the fixed deposit account at the rate of 5 per cent, per annum : I have the honor to signify hereby my acceptance of these terms, and to request that the Bank will complete the transaction. I presume that the debentures, when issued, should bear upon them this day's date. I have, Ac, The Inspector of the Bank of New Zealand, Eobert Graham, Auckland. Superintendent. No. 31. The Hon. Colonial Secretary to S. Kempthorne, Esq. Sir, — Colonial Secretary's Office, Auckland, 16th January, 1565. I am directed to acknowledge the receipt of your letter of the 9th instant, in reply to mine of the 24th ultimo, on the subject of a sum of £25,000, placed to the credit (in the Bank of New Zealand) of the Commissioners for the erection of Public Buildings in Auckland. In reply I am to state for the information of the Commissioners that it is the intention of the Government to lay the circumstances relative to this transaction before the General Assembly, and I am in the meantime to point out, that neither in the case in question nor in that of the Government House land (the proceeds of which should have been paid into the Colonial Treasury) does it appear that the provisions of the Acts of the General Assembly respectively relating to these matters have been complied with. I have, &c., S. Kempthorne, Esq., W. Gisborne, Secretary to Commissioners of Public Buildings, Auckland. Under Secretary. No. 32. Public Buildings Commission to the Hon. the Colonial Secretary. Sir, — Public Buildings Commissions Office, Auckland, 7th April, 1865. I have the honor, on behalf of the Commissioners for Public Buildings, Auckland, to acknowledge receipt of your letter No. 22, under date January 16th ultimo. I have, &c, W. Gisborne, Esq., Joseph Brown, Under Secretary, Wellington. Clerk to Board of Commissioners. No. 33. MEMOEANDUM by the Secretary fob Crown Lands. Auckland, 20th January, 1865. With respect to the sale of the site in Queen Street, of the old Supreme Court, I have this to remark: The necessity for building a new Supreme Court in Auckland being admitted on all sides, the late Government determined to delay no longer the carrying into effect of the provisions made by the Legislature in " The Auckland Eeserves Act, 1858," for supplying funds for the erection of the building required ; they therefore announced their intention of selling by auction the land described in No. 5 paragraph of the Schedule of that Act, the proceeds of which sale, by section 4 of the Act it is declared shall be applied to the " erection of a Court of Justice in the City of Auckland." The Provincial Council, becoming aware of this intention, commenced a violent opposition to the course proposed, chiefly, I believe, on the ground that all reserves in the city should be claimed for the public. This desire is of course, in itself, a very proper and beneficial one, but considering the necessity existing for a Court House, and the great demands on the Provincial and General public funds at present, was, I think, injudiciously displayed on the present occasion The Government, to meet the wishes of the Provincial Council, as far as it could, consistently with its higher duty of getting a Supreme Court House erected, agreed to sell the land in Queen Street to the Province, for a sum equal to what it was estimated it would fetch if cut up into sections and sold by public auction, viz. : £25,000. The Provincial Government agreed to this proposal. But as some difficulty existed as to the immediate possession of the purchase money, the Provincial Government proposed to pay it out of their authorized loan of £500,000 ; and as they had an agreement with the Bank of New Zealand for the advance of £100,000 each year till the loan was exhausted, I presume, (for the duration of these payments is not stated in the correspondence before me), and had appropriated the £100,000 due in the year 1865, a special agreement was entered into, under which the Bank undertook to advance a sum of £50,000, (to cover also the cost of the new Government House, to be presently alluded to), as a portion of the £100,000 due to the Province in the year 1866 ; the said sum of £50,000 to be paid to the Commissioners for Public Buildings (recently appointed), and by them placed on fixed deposit for twelve months with the Bank of New Zealand —the Commissioners being at liberty to transfer from E

17

ERECTION OF SUPREME COURT