A.—No. 6.

16

PAPERS RELATING TO

Appendix B. The Loans.

COMPARATIVE STATEMENT showing the Price realized by the Governments of New South Wales and New Zealand respectively, for 5 per cent. Debentures disposed of in the London Market within 10 days of each other.

A small loan like that of New South Wales, all placed on the market at once, is much less calculated to depress prices than the comparatively large requirements —present and prospective—of New Zealand, which amount to £5,000,000 sterling. Julius Vogel. London, 14th April, 1871. Peneose G. Jultan.

The Hon. J. Vogel and Mr. P. G Julyan to the Hon. the Colonial Seceetart. Sib, — Charing Cross Hotel, London, Ist June, 1871. We are glad to be able to inform you that, after considerable delay, we have succeeded in making satisfactory arrangements with the Lords Commissioners of Her Majesty's Treasury respecting the issue of the £1,000,000 guaranteed loan. From the accompanying correspondence it will be seen that the Imperial guarantee will be at once given to debentures for £200,000, which debentures are to bear date this day; and that a similar amount will be guaranteed at intervals of not less than twelve months (provided the Imperial Government be first satisfied that a like amount has been or is in course of being spent for the purposes mentioned in the Guaranteeing Act) until the total of £1,000,000 shall have been issued. The Government will not be obliged to dispose of the debentures immediately on the guarantee being given ; but they may be kept and be disposed of whenever their proceeds are needed. Thus the debentures will form an accumulative reserve fund ready for use at any time, but, until the money is actually required, not involving any charge for interest. It need scarcely be observed that the guaranteed debentures will always be saleable in any condition of the money market. We have, <fcc, Julius Vogel. The Hon. the Colonial Screteary. P. G. Jultan.

The Hon. J. Vogel and Mr. P. G. Julyan to the Pebjianent Seceetaby to the Tkeasubt. Sib, — Charing Cross Hotel, London, 19th April, 1871. We have the honor to acquaint you, for the information of the Lords Commissioners of Her Majesty's Treasury, that we have been duly appointed by His Excellency the Governor of New Zealand as Agents, under the 19th section of 33 and 34 Viet., No. SO (passed by the General Assembly of the Colony during its last Session, and intituled " The Immigration and Public Works Loan Act, 1870,") for the purpose of giving to the Treasury the assurances required by the Imperial Act, 33 and 34 Viet. c. 40, respecting the guaranteeing of a loan of one million pounds sterling, to be raised by the Colony. The warrant of our appointment is enclosed, and we have the honor to state that, on behalf of the Government of the Colony, we accept the guarantee under the conditions prescribed in the Imperial Act. . We propose that the Treasury at once guarantee a first instalment of two hundred thousand pounds, on the understanding that the debentures are to be deposited at the Bank of England, to be sold from time to time, as the Colonial Government may require. We have to ask that this be agreed to without prejudice to our obtaining a guarantee for further instalments of two hundred thousand

New South Wales. £407,100—sold on 28th March, 1871. Net Price Eealized. New Zealand. £1,200,000—sold on 6th April, 1871. Net Price Eealized. £ s. d. £ s. d. £ s. d. £ s. d. £ s. d. lold with accrued Interest, from 1st January, 1871, £5 payable on 28th March, and balance on 2nd May, At per 100 ... ... ... 98 16 0 )educt— £ s. d. Interest on £5 for 86 days at 5 per cent, per annum ... ... 0 1 2 Ditto on £93 16s. for 121 days ... ... 1 11 H Sold with Interest from 16th April, 1871, £5 payable on 8th April; £45 on 20th April; and £45 16s. 9d. on 30th Hay, 1871. At per 100 ... ... ... 95 16 9 Deduct— £ s. d. Interest on £45 for 4 days at 5 per cent. per annum ... 0 0 6 Ditto on £45 16s. 9d. for 44 days ... 0 5 6 1 12 3£ Net price ... ... New Zealand net price 97 3 8i 95 10 10£ 0 6 0 £95 10 10| Difference in favour of New South Wales; J £1 12 10 Less 5 per cent, on £5 paid 8 days in advance 0 0 li 0 5 10J I, ?he retail price of New South Wales debenk London market is generally from 1£ to 2 per those of New Zealand. At this moment it is ! I ures in the r cent, above 2 per cent. Net price The net price obtained on the £1,114,000 issuec Public Debts and Consolidated Loan Acts, £96 4s. 3Jd., as stated in the Honorable t Treasurer's letter to the Crown Agents, llarch, 1869, being only 13s. 5d. per cent present price, whereas the market at that tim more favourable for negotiation, and there ' prospect of further issues. :d under the , 1867, was the Colonial dated 12th t. above the le was much was then no