✨ Financial Dispute Resolution
iv.
is advised that agreement is ultra vires, and cannot be carried out, and proposes to give letter of instructions to the London office of the Bank, authorising payment there of £40,000; and authorising Bank to realise Debentures at the best price obtainable, if such sums should not be paid within ninety days of receipt of such letter, nor within three months thereafter.*
The Manager replies that if Drafts are not given the Bank will sell Debentures "to recoup any advance the Bank may be under to the Government."†
On the 6th July, 1867, the Provincial Treasurer drew two Drafts on the Managing Director, London, at six months’ sight for £25,000 each, and the proceeds, £47,250, were passed to the credit of the Provincial Treasurer’s Account at the Christchurch branch. These drafts matured 29th February, 1868.‡
On the 26th September, 1867, the London office, acting with the Agent of the Province, sold £100,000 of Debentures for £94,000, and received the money. The Agent directed the Bank to retain £77,900 to make certain payments in London, amongst others the Canterbury Government Drafts, £50,000, and to remit the balance to the Colony.‖
The Manager at Christchurch explains afterwards that "in consequence of the arrangement that had been entered into between the Bank and the General Government in respect of advances to the Province, and the realisation of the balance of Debentures under the consolidation measures,"§ the Drafts had not been charged against the sale of the Bonds already effected, and that he proposed to pass £65,000 to the Provincial account.¶
The London office statement of account, date 27th March, 1868, shows that the Bill was debited there to the Government account at maturity, 29th February.**
The same statement shows that on the 24th March, by which time information would have reached London of what the Manager at Christchurch had done (letter of 11th January, 1868) the Bank revived the Bill by reversing the entry that had been made, 29th February, and took credit at the same time for £65,000 passed to the Provincial account, Christchurch.††
On the 20th March, 1868, the Colonial Treasurer paid to the London office as previously stated £190,000 to the credit of the Canterbury Government.‡‡ This sum was remitted to the Colony, and interest was charged on the Bill to the 1st June, 1868.
- Mr. Stewart’s letter, 4th July, 1867.
† Mr. Coster’s letters, 5th and 6th July, 1867.
‡ Bank statement of particulars of Drafts (attached).
‖ Mr. Coster’s letter, 11th January, 1868.
§ Memorandum by Mr. Fitzherbert and Mr. Russell, 9th October, 1867.
¶ Mr. Coster’s letter, 11th January, 1868.
** London office, statement of account, March 27, 1868 (attached).
†† Mr. Woodward’s memo., November 26, 1869.
‡‡ Mr. Murdock’s letter, January 7, 1870.
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Canterbury Provincial Gazette 1871, No 30
✨ LLM interpretation of page content
💰
Claim by Provincial Government Against Bank of New Zealand
(continued from previous page)
💰 Finance & RevenueFinancial Dispute, Bank of New Zealand, Provincial Government, Interest Charges
6 names identified
- Stewart (Mr), Author of letter
- Coster (Mr), Author of letters
- Fitzherbert (Mr), Author of memorandum
- Russell (Mr), Author of memorandum
- Woodward (Mr), Author of memo
- Murdock (Mr), Author of letter