41

8.—4

Present annual charge: Interest on ... .. ... £1,832,000 503,700 2,335,700, at 5 per cent. £116,785 3,053,000, at 4J „ 137,385 5,388,700 254,170 Crown Agents'commission ... ... at \ per cent. 635 254,805 Future annual charge: Interest on ... ... ... 5,548,815, at 4 per cent. 221,952 Bank of England, at £550 per million 3,051 Less ... ... ... ... 319* 2,732 224,684 Saving per annum ... ... ... ... ... ... 30,121 But this saving is reducible by the 'amount required to be invested annually at 4 per cent, compound interest to produce the amount of the increased capital by the due date of the stock in 1929 ... 1,323 The net saving per annum is therefore ... ... ... ... £28,798

No. 35. The Agent-Geneeal to the Hon. the Colonial Teeasuseb. Sic, — 7, Westminster Chambers, London, S.W., 14th December, 1883. Adverting to the conversion scrip belonging to the custodians of the various funds, it has seemed to me necessary to take care that no risk is incurred to the funds by the necessity (which could not be avoided) of first inscribing the stock in the names of the persons among whom I had to divide the various holdings upon surrendering the debentures. I accordingly instructed Messrs. Mackrell to prepare declarations of trust, certifying that wo hold the scrip in trust for the custodians; and I shall soon be able to send you those instruments. Upon looking at the Imperial Act, it appeared-to me that the custodians might bo debarred from taking out stock certificates in the way they instructed me to do for the stock inscribed in their names. I, therefore, brought this question before Messrs. Mackrell, under whoso consideration it still is, and steps will be taken to meet the difficulty. I have, &c, The Hon. the Colonial Treasurer, Wellington. F. D. Bell.

No. 36. The Stock Agents to the Hon. the Colonial Treasures. Sik, — 7, Westminster Chambers, London, S.W., 14th December, 1883. We have now the honour to inform you that the conversion of the 5-30s and short-dated debentures was completed, according to announcement, at the Bank of England on the 30th November. The following are the amounts sent in for conversion, viz.:— 1. 4*-per-cent. 5-30s (1904 and 1905) ... ... ... ... £3,053,000 2. 5-"per-cent. 5-30s (1906) ... ... ... ... ... 503,700 3. Short-dated debentures ... ... ... ... ... 1,832,000 Total £5,388,700 Of this total amount, debentures for the following sums were deposited at the Bank of England, viz.: — 4|-per-cent. 5-30s ... ... ... ... £2,901,100 5-per-cent. 5-30s 475,000 Short-dated bonds 1,832,000 . £5,208,100 And notices as to the following amounts were sent in under the notice to Trustees referred to in the Agent-General's letter of the 28th November, viz.: 43-per-cent. 5-30s ... ... ... ... £151,900 5-per-cent. 5-30s ... ... 28,700 180,000 Making altogether the total of ... ... £5,388,700 We suggested to the Agent-General that it would be advisable to obtain an actuarial computation of the value of the- operation to the colony; and we now have the honour to transmit herewith

* Tho sum of :J£3l9 represents the saving of £50 per million now effected in the Bank of England's charge on the amount of the stock before tho above conversion took place, viz., £6,371,200; new stock, £5,548,815: total stock, £11,920,015.

6—B. 4.