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10

Enclosure 1 in No. 10. New Zealand.—Further Conversions of the Public Debt. The Governor and Company of the Bank'of England give notice that, on behalf of the Agents appointed by the Governor of New Zealand in Council under "The New Zealand Consolidated Stock Act 1887 Amendment Act, 1881," and "The Consolidated Stock Act, 1884 " (Sir Francis Dillon Bell, K.C.M.G., C.8., and Sir Penrose Goodchild Julyan, K.C.M.G., C.8.), they are authorised to invite holders of the outstanding debentures of the under-mentioned loans to bring in their debentures for conversion on the following terms : — 1. Six per Cents, of the Loans of 1860 and 1863, redeemable 1891.— 15 th March, £154,800 ; 15th Juno, £188,400 ; Ist July, £74,100 ; 15th December, £73,800. (i.) For every £100 in debentures of the loan of 1863 falling due 15th March next, from which the coupon for the half-year's interest due 15th March must be detached, £104 of 34-per-cent. inscribed stock, bearing interest from Ist July, 1891, and inscribable on or after 2nd June, 1891. Scrip certificates, with coupon attached for interest at 3.}- per cent, from 15th March to SOth June (payable Ist July), will be issued in exchange for the debentures, (ii.) For every £100 in debentures of the same loan falling duo 15th June next, from which the coupon for the half-year's interest due 15th June must bo detached, £104 of 34-per-cent. inscribed stock, bearing interest from Ist July, 1891, and inscribable on or after 2nd June, 1891. Scrip certificates, with coupon attached for the interest at 34 percent, for the broken period from 15th to SOth June (payable Ist July), will be issued in exchange for tho debentures, (iii.) For every £100 in debentures of the same loan falling due 15th December next, from which the coupon for tho half-year's interest due 15th Juno must be detached, £104 of 34-per-cent. inscribed stock, bearing interest from Ist July, 1891, and inscribable on or after 2nd June, 1891. Scrip certificates, with coupon attached, payable 15th December, 1891, for interest at 6 per cent, per annum, from 15th June to 30th June, and for the difference of interest between 34 per cent, and 6 per cent, per annum, from Ist July to 15th December, will be issued in exchange for tho debentures, (iv.) For every £100 in debentures of the loan of 1860, from which the coupon for tho half-year's interest due Ist July next must be detached, £104 of 34-per-cent. inscribed stock, bearing interest from Ist July, 1891, and inscribable on or after 2nd June, 1891. 2. Five per Cents, of the Loan of 1867, redeemable Ist January, 1893, £64,000. —For every £100 in debentures, from which the coupon for the half-year's interest due Ist July must be detached, £106 of 34-per-cent. inscribed stock, inscribable on or after 2nd June, 1891, and bearing interest from Ist July, 1891. 3. Old Provincial Loans. —Ly ttelton and Christchurch Railway Loan, £77,700; Westland Loan, £50,000; Auckland Loan, £31,600 ; Nelson Loan, £15,000 ; Otago Loan, £116,700 ; Canterbury Loan, £22,800. (i.) Lyttelton and Christchurch Railway Loan, redeemable 1893 to 1897, £77,700. For every £100 in debentures, with all undue coupons attached, the following amounts of 34-per-cent. inscribed stock, inscribable on or after 2nd June, 1891, and bearing interest from Ist July, 1891, namely : Series redeemable 1893, £109 of stock ; series redeemable 1894, £111 of stock ; series redeemable 1896, £113 10s. of stock; series redeemable 1897, £115 of stock, (ii.) Westland Loan, redeemable 1894, £50,000. For every £100 in debentures, with all undue coupons attached, £107 10s. of 34-per-cent. inscribed stock, inscribable on or after 2nd June, 1891, and bearing interest from Ist July, 1891. (iii.) Auckland Loan, redeemable 1896, £31,600. For every £100 in debentures, with all undue coupons attached, £114 of 34-per-cent. inscribed stock, inscribable on or after 2nd June, 1891, and bearing interest from Ist July, 1891. (iv.) Nelson Loan, redeemable 1896, £15,000. For every £100 in debentures, with all undue coupons attached, £119 lbs. of 34-per-cent. inscribed stock, inscribable on or after 2nd June, 1891, and bearing interest from Ist July, 1891. (v.) Otago Loan, redeemable 1898, £116,700. For every £100 in debentures, with all undue coupons attached, £117 10s. of 34-per-cent. inscribed stock, inscribable on or after 2nd June, 1891, and bearing interest from Ist July, 1891. (vi.) Canterbury Loan, redeemable 1915 and 1916, £22,800. For every £100 in debentures, with all undue coupons attached, £136 of 34-per-cent. inscribed stock, inscribable on or after 2nd June, 1891, and bearing interest from Ist July, 1891. Tho inscribed stock herein mentioned will in every case rank pari passu with tho New Zealand 34-per-cent. consolidated stock already inscribed at the Bank of England, with dividends payable half-yearly on the Ist January and the Ist July, and redeemable at par on the Ist January, 1940. Debentures surrendered for convorsion must bo deposited not later than tho following dates at the Chief Cashier's office, Bank of England, where tho necessary forms may be obtained, and must be left three clear days for examination : Sixes of 1891 falling due the 15th March, 1891, on or before the 14th March next; all other debentures, on or before the 15th June next. The right is reserved in the case of any debentures not brought in for conversion on tho terms now notified to convert tho same into 34-per-cent. inscribed stock (with the assent of holders), on terms to ho notified from time to time at the Bank of England. By the Act 40 and 41 Vict., cap. 59, the revenues of the Colony of New Zealand alone will be liable in respect of the stock and the dividends thereon, and the Consolidated Fund of the United Kingdom and the Commissioners of Her Majesty's Treasury will not be directly or indirectly liable or responsible for tho payment of the stock or of the dividends thereon, or for any matter relating thereto. Bank of England, 13th February, 1891.

Enclosure 2 in No. 10. New Zealand Public Debt. Conversion of 1891. The present conversion continues the series of operations carried out since 1883, for converting loans bearing from 44 per cent, up to 6 per cent, interest into 4-per-cent. and 34-per-cent. inscribed stock. The amount of 4-per-cent. stock issued in conversion is £11,125,255, to which has to be added £242,800 to extinguish bonds for the purchase of private railways, and £4,557,047 which will bo inscribed in 1892 on the expiry of tho seven years' and six years' 5-por-cent. bonds issued in exchange for debentures of the fives of 1914 and Consols of 1867. 'The amount of 34-per-cent. stock issued in conversion is £2,700,000, to which has to be added a further issue to the extent of about £70,000 for stamp duty and other expenses of the conversion of 1889. The total amount of stock of both denominations for conversions heretofore effected is accordingly over £18,695,000, and a largo saving in interest has thereby been made. By the present conversion a sufficient amount of 34-per-cent. stock will be created to extinguish the outstanding debentures of the following loans falling due between now and 1898—namely, tho sixes of 1891, amounting to £491,100 ; the loan of 1867 (not subject to annual drawing), amounting to £64,000; and a number of old Provincial loans (created before the abolition of the provinces), amounting to £313,800. The population of New Zealand at tho end of 1890 was about 610,000. The surplus of ordinary revenue with which the financial year 1889-90 began was £36,500, after paying off a deficit of £128,600 unprovided for at the end of tho financial year 1887-88. The revenue for tho nine months ending 31st December, 1890, has been very satisfactory. The late Treasurer expected a fair surplus at the end of the financial year on tho 31st March, 1891, and by adding an estimate for the current quarter since the 31st December, he considered that tho total of the year's revenue, including land revenue and £288,000 Sinking Fund debentures, would amount to £4,414,300, against the original estimate of £4,255,600, less £27,500 for six months' primage duty which was disallowed by tho House of Representatives. The total ordinary revenue for the financial year ending the 31st March, 1891, is likely to exceed the estimate by £118,700, and the land revenue by £67,400. All sources of revenue are likely to show an excess—Customs duties by £90,000, and railways by £15,000. The railway surplus revenue over working-expenses is expected to be £402,000. Tho total expenditure for the year, including land charges, is estimated to be £4,252,000, against £4,241,200 voted. Taking the surplus of the ordinary revenue at the beginning of the financial year—namely, £36,500 —and paying off £42,600 of deficiency of land revenue belonging to the preceding year, the net surplus is estimated at £158,800. On the 31st March, 1890, the gross public debt of the colony was £38,667,950, and, deducting the accrued sinking funds, the net debt was £37,284,518 ; but at that date there still remained unexpended about £961,000 out of the loans raised. On the 31st March, 1890, 1,813 miles of railway were opened, and 121 miles were under construction, making a total of 1,934 miles. The total expenditure on construction was £15,028,000. The Registrar-General's returns up to