B.—No. 1A.

Mr. Bichmond's letter, already referred to, named £54,500 as the probable amount to be paid ; but as the Managing Director of the Bank only demanded £50,500, payment of the latter sum only was made. I have, &c, The Hon. E. W. Stafford, P. G. Jultan. Colonial Secretary, &c, New Zealand. Enclosure 1 in No. 13. Copy of a Letter from Mr. Larkwortuy to the Ceown Agents. Deae Sies, — London, 18th December, 1865. In accordance with an arrangement entered into with the General Government of New Zealand, under date 14th October, 1865, whereby it is provided that an advance of £50,500, made by this Bank to the General Government of New Zealand, should be repaid by the Crown Agents for the Colonies to this Bank in London, and that a notice of ninety days should be given by the Bank to the Agents of their desire for repayment, —I now beg to state that such repayment will be necessary in ninety days from this date, and you will bo good enough to accept this notice as given in accordance with the arrangement above referred to. I am, &c, F. Laekwoetht, Managing Director. Enclosure 2 in No. 13. Copy of a Letter from Mr. Labicwortiiy to the Crown- Agents. Dear Sies, — London, 13th January, 18G6. In accordance with an arrangement entered into with the General Government of NewZealand, under date 14th November, 18(35, whereby it is provided that an advance of £73,220, made by this Bank to the General Government of New Zealand, should be repaid by the Crown Agents for the Colonies to this Bank in London, and that a notice of ninety days be given by the Bank of their desire for repayment, —I now beg to state that such repayment will be necessary in ninety days from this date, and you will be good enough to accept this notice as given in accordance with the arrangement above referred to. I am, &c., F. Laekwoettty, Managing Director. No. 14. Copy of a Letter from Mr. J. Morrison to the Hon. E. W. Stafford. (No. 132.) Office of the New Zealand Government Agency, 3, Adelaide Place, King William Street, Sir,— London, E. C, 24th March, 1866. Since the departure of last mail the money market has exhibited more easiness, the Directors of the Bank of England having, on the 15th instant, reduced their minimum rate of discount from 7 to 6 per cent. This tendency still prevails; but, owing to the collapse of the Joint Stock Discount Company, and the gross • mismanagement it has exposed, the public have become distrustful, and securities of most kinds are depreciated. The operation of most interest to the Colony is the issue of £500,000 of the 6 per cent. Government Loan. As the Government will receive from the Crown Agents for the Colonies by this mail full information of the result, I content myself by remarking that of the numerous applicants for the portion, of this loan originally allotted, the entire number consisted apparently of permanent investors; and the Stock Exchange was not in any way interested. The result of the offer of £700,000 New South Wales Government 5 per cent. Debenture Bonds, by the Oriental Bank Corporation, was a complete failure, only £29,000 having been applied for. The fixed minimum price for Series Numbers 1, 2 and 3, were respectively 95, 92-J- and 91, for each £100 five per cent. Debenture, —yielding, with accrued interest, about 6|- per cent, per annum. As the New Zealand 6 per cent. Loan yields about £6 13s. 4d. per cent., this undoubtedly indicates a preference on the part of the public for a 6 per cent, rather than a 5 per cent, security. A peculiar instance of the caprice of the public is exhibited by the issue of a Chilian Loan for £450,000 for one and two years at 6 per cent, interest, when applications were received for £3,523,000. It is stated that not less than 200 members of the Stock Exchange applied and received allotments. This is significant of the great influence of the Stock Exchange, —especially having regard to the fact of Chili being at war with Spain. Up to the time of the offer of the New Zealand 6 per cents, by the Crown Agents at 90, the price of these securities was quoted in the official list of the Stock Exchange at 100 to 103. While it must be a matter of regret, this decline in price, yet it is somewhat compensated by the comparative success of the issue; and it may fairly be anticipated that the value will improve and enable the Government to obtain better terms for the remainder of the loan. I have, &c, The Hon. the Colonial Secretary, John Morrison. Wellington, New Zealand.

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