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Copies of Telegrams referred to in No. 48. The Colonial Teeasueee to the Agent-Geneeal. Agent-General, London. Wellington, 3rd November, 1884. Ask Julyan reply following : Do you consider you have acted merely as adviser to Agent-General, or that you have had equal power and responsibility. We notice you have only signed some letters. In arrangement you now propose, are you willing exercise equal power, judgment, responsibility, and burden correspondence in all matters connected with loan conversion and negotiation ?

Sir Peneose Julyan to the Colonial Teeasueee. Treasurer, New Zealand. (Beceived 7th November, 1884.) Have not acted merely as adviser. Have had equal power and responsibility as my colleague in loans and conversions. Am not aware that have omitted to sign any letters on these subjects. In proposed arrangement am willing to take equal share in responsibility, &c, appertaining to loans conversion and negotiation. Julyan, London, 6.

No. 49. The Agent-Geneeal to the Colonial Treasurer. Sib, — 7, Westminster Chambers, London, S.W,, Ist November, 1884. It appeared to me necessary, in view of the Government deciding to proceed with a conversion of the Consolidated Loan of 1867, that the " actuarial equivalent" referred to in the telegrams which recently passed between yourself and the Stock Agents, should be determined. I accordingly consulted with Mr. Bailey and Mr. Hardy as to the form in which this equivalent should be shown, within a certain range of prices for consols and inscribed stock respectively, in stock at 4 per cent., and stock at 3| per cent., and I now transmit copy of a letter I have received from those Actuaries, with the tables they constructed for that purpose. You will observe that the table for the 3J-per-cent. stock is constructed for a stock supposed to have a currency of fifty years. If the conversion should take place into a stock to be paid off, like the present 4-per-cent. stock, in 1929 (or only forty-five years from now), the figures would of course have to be somewhat changed. It should, I think, be one of the points to be determined by the Government when further conversions are made, whether all the stock for such conversions should rank pari passu with the present issues, or whether, having regard to the magnitude of the amount for which provision will have to be made in 1929, a later date should not be fixed for the maturing of new conversion stock. I have, &c, The Hon. the Colonial Treasurer, Wellington. F. D. Bell,

Enclosure in No. 49. Messrs. Bailey and Haedy to the Agent-Geneeal. Sic, — London, Ist November, 1884. We send herewith the tables which we have prepared in conformity with your request, showing, for different prices of New Zealand 5-per-cent. consols, the equivalent amounts for each £100 of this stock, if converted into the 4-per-cent. inscribed stock or into a new 3-|-per-cent. stock, redeemable at par fifty years hence. The rates of interest yielded on investments in the 4-per-cent. inscribed stock, at the different prices, have been the basis of calculation for the equivalent amounts of the proposed new 3-J-per-cent. stock. We are, &c, Sir Francis Dillon Bell, K.C.M.G., A. H. Bailey, Agent-General for New Zealand. Balph P. Haedy. i

Sub-Enclosure in No. 49. NEW ZEALAND DEBT. Table I.

. Example: Thus :If the prices are—4-per-cent. Inscribed Stock .. .. £102. 5-per-cent. Consols .. .. £107. Then £104 18s. 4-per-cent. Inscribed Stock would be the equivalent for £100 5-per-cent. Consols. A. H. Bailby. Ralph P. Haedx.

Amount of 4-pi sr-cent. Inscrih Consols id Stock equivalent to £100 Si at the undershown Prices of thi rack of the pres< 3 latter. >nt 5-per-cent, 'rice of the 4-per-cent. Inscribed Stock. 105. 106. 107. 108. 109. 110. £ 99 .00 .01 .02 .03 .04 .05 .06 £ s. d. 106 1 3 105 0 0 103 19 2 £ s. d. £ s. d. £ s. d. £ s. d. £ s. d 106 0 0 104 19 0 103 18 5 105 18 10 104 18 0 103 17 8 105 17 8 104 17 1 103 16 11 105 16 6 104 16 2 103 16 2 105 15 5 104 15 3 103 15 6