Object #1022449 from MS-Papers-0032-0481
8 pages written 30 Oct 1863 by an unknown author in Auckland Region
From: Inward letters - J D Ormond, Reference Number MS-Papers-0032-0481 (89 digitised items).
85 letters written from Epraima, Auckland, Wallingford & Napier, 1857-1865. Includes a few draft letters from McLean to Ormond.
A transcription/translation of this document (by ATL) appears below.
October 30th /63
My dear McLean,
That little vessel I wrote you by yesterday has not yet left but goes in the morning - I add a line to give you the news since my last - The Ministry is formed and is very strong - Whitaker Premier - leading Lords Fox Col. Secretary leading Commons, West - Col. Treasurer, T.Russell - Defence, Gillies - Postmaster General, to reside in the Middle Island, No Minister of Native Affairs to be appointed.
This was announced today and the Union blessed by the Godfathers of various parties in the House - viz. Stafford - Featherstone Fitzgerald etc. - Bell said a few words which were generally accepted as a bid for office -but that he cannot get. Something will have to be found for both he and Domett - That is all there is to tell you -Domett is very wrath and calls the speeches of today urinal endorsements as every one was pidling down the others hack. For my own part I wd. sooner have had Dometts Govt. amended and strengthened - we must however take thingsas they are and do our best with them. You will have to come up by the steamer on the 16 or 17th. We must arrange many things with the new Govt. - The Wellington Members also wish a meeting on the Debt question and I have put it off until your arrival. The House is now promised by the new Govt. that the
business shall be completed so as to enable Members to return home by the Steamers on the 23rd or 26th of the month. If you come up by the 15th steamer, you will be able to return by the same chance.
I have settled (just now) the Loan negociation - I enclose you the terms closed with which I think very good -the N. Zealand Banks offers are not nearly as favorable as the Union and both Banks gave their ultimatum I have not time to end you more than the copy of the 'Union's terms' which are those closed with - I will send the whole correspondence by the steamer on the 6th. The Bonds must be altered and made payable in London. I have ordered thro. the Union Bank Bonds and Coupons to be prepared at once in Sydney and sent down for execution. They will be dated the 1st July 1864, the earliest day by which they could advantageously be placed in the London market - the Bonds to be for £100 each. I think I can get the Schedule altered by Act of the Assembly if so it will save a meeting of the Pro: Council - This I will enquire about - The Coupons and Bonds will not be with us in less than 2 months they tell me at the Bank.
Copy of the terms closed with - and offered by Union Bank in a letter of the 28th Oct. inst. for negotiating Loan of £60,000 and keeping Govt.Acct.P.Hawkes Bay. J.D.O.
£1. That the Union Bank of Australia would negotiate the loan in London at the rate of one per cent Commission this commission to include all charges would transfer the proceeds to Napier at the exchange of the day - would pay the Dividends at our London office free of charge and on funds being placed in our hands would undertake to transmit them to London to met the interest on the Bonds half yearly, and also for the payment of the principal at the current rates of exchange - The Bank to be empowered to dispose of Debentures without reserve for such an amount as may be required to cover any advances made after the expiration of 6 months from the date of the loan being offered in the London market.
2. The Bank would make advances to the Govt. to the extent of £100000, on account of the Loan, the payments not to exceed £1,000 monthly and to commence from the date of the bonds being transmitted to London.
3. Interest to be charged the Province on advances at the rate of 6 p. cent.
4. The Bank would allow the Province five p. cent Interest on the proceeds of the Bonds from the date payment is reed. by its Landnoffice
1. Though the Bank wd. not actually bind itself to advance the Govt. £5.000 on an overdrawn account - the requirements of the Govt. for accommodation wd. at all times be met by the Bank in a spirit of liberality -
2. Interest would be allowed on the current account of the Govt. at the rate of 5 per cent - and on fixed deposits for 12 months* (This will apply to the Loan or such portion as was not at once wanted) - 6 per cent pl annum.
3. Interest to be charged on overdrafts at the rate 6 p. cent.
4. Rate of exchange on the remittances of the Govt. to Great Britain and New Zealand to be one half per cent under current rates (the exchange on the half yearly interest payable by the Govt. to be at current rates (This means the Loan dividends).
5. No exchange to be charged between the different Provinces of N.Zealand.
6. That the agreement between the Govt. and Bank may be terminated by either party on giving 12 months notice -
Sd. John Simpson
Inward letters - J D Ormond, Reference Number MS-Papers-0032-0481 (89 digitised items)
Series 1 Inward letters (English), Reference Number Series 1 Inward letters (English) (14501 digitised items)
McLean Papers, Reference Number MS-Group-1551 (30238 digitised items)
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