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It will not have escaped your notice that I have not yet sent you the cipher code of which I spoke in my letter of the 25th August; but the market has been ever since in a state which precluded the idea of any operation in conversion, to say nothing of the apprehension which was created, though only for a short time, of a Native disturbance. lam inclined to think, however, that the causes for the disquietude of the market we have seen during the last three months are now tending to a change for the better, and I will presently address myself again to the cipher. But I am sorry to say that I see no prospect of such a change in the market as will encourage a very early operation being attempted, still less bring back the fine opportunity which, through no fault of the Government,"we unfortunately lost. I have, &c, The Hon. the Premier, Wellington. F. D. Bell.

No. 11. The Agent-Genebal to the Hon. the Pbemieb. Sib, — 7, Westminster Chambers, London, S.W., 6th February, 1882. Adverting to my letter of the 31st December last (No. 923), in which I acknowledged the various Orders in Council constituting Sir Penrose Julyan and myself Agents for the purposes therein mentioned, I have now to inform you that Sir Penrose has returned from Nice, and that we have resumed the examination of the conversion question, and are preparing the steps to be taken at the Bank of England. The agitation caused on the Stock Exchange here by the events that have happened on the Paris Bourse, with the effect on the money market and the increase of the Bank of England rate to 6 per cent., have necessarily occupied our close attention. We are not at present inclined to think the position, on the whole, an adverse one to a conversion operation, but it is too early yet to judge with sufficient clearness to enable us to express a decided opinion, and I am delaying a general letter, which I should otherwise have sent you, till I see my own way better. I have, &c, The Hon. the Premier, Wellington. F. D. Bell.

No. 12. The Agent-General to the Hon. the Pbemieb. Sib, — 7, Westminster Chambers, London, S.W., Bth March, 1882. Upon receiving the Orders in Council issued in pursuance of the amended Stock Act, it became necessary for me, among other things, to notify them to Mr. Sargeauut, as one of the original Stock Agents. I did so in the letter of which I now beg to transmit a copy, together with the reply, in which Mr. Sargeaunt, while desiring to convey his thanks to the Government for their appreciation of his past services, states that in point of fact the Secretary of State's decision of May, 1881 (as to the future employment of the Crown Agents), had not precluded a Crown Agent from acting for the New Zealand Government under the Stock Acts. I thereupon thought it right to send the answer to Mr. Sargeaunt, which I also enclose, and presently I shall seek a further interview with Lord Kimberley, in order to remove any possible misconception of his Lordship's meaning in the matter. I feel sure, however, that there has been none. I have, &c, The Hon. the Premier, Wellington. F. D. Bell.

Enclosure 1 in No. 12. The Agent-Genebal to Mr. W C. Sargeatjnt. Sm, — 7, Westminster Chambers, London, S.W., 17th February, 1882. Adverting to the letter of the 18th June last, which was addressed by the Premier of New Zealand to the then Stock Agents, informing them of trie revocation of the Orders in Council under which their appointments had been made, I have now the honour to state that an amending Act was passed in the last session of the New Zealand Parliament for the purpose of reducing the number of Agents to two, and that, in exercise of the powers conferred by the Act, the Governor was pleased, by Order in Council on the sth November last, to appoint the Agent-General of the colony, together with Sir Penrose Julyan, to be the Agents in England for the purposes of the Stock Acts. It was with much regret that, remembering the long and valued services you had rendered to the colony, the Government found themselves obliged to omit your own name from the above appointment, in consequence of the Secretary of State having given directions that the Crown Agents should in future cease to be engaged in financial operations for colonies under Responsible Government. You will not, therefore attribute that omission to any want of appreciation for your services, which, indeed, were fully recognized by the Government in the Premier's letter. I have, &c, W. C. Sargeaunt, Esq., C.M.G. F. D. Bell.

-" Enclosure 2 in No. 12. .. Mr. W. C. Sakgeaunt to the Agent-General. Sib, — :>. Downing Street, London, 6th March, 1882. I have to acknowledge the receipt of your letter of the 17th ultimo, in which you are so good as to inform me that, in exercise of the powers conferred by an Act passed in the last session