Canterbury Provincial Gazette – 1871 – No. 30

Page 195

✨ Bank Claim Against Provincial Government



CLAIM OF THE BANK OF NEW ZEALAND AGAINST THE PRO-VINCIAL GOVERNMENT: £1890.

This is a claim by the Bank of New Zealand for the payment of a sum of £1890, being commission of one per cent. on Bonds placed in their hands for sale, and which were held by them at the time of the passing of the Public Debts Act, 1867. The Superintendent has declined to admit this claim on the grounds:—

  1. That the Bonds in question were not negotiated by the Bank.

  2. That the agency of the Bank was conditional in respect of the price to be placed on the Bonds, and subject to instructions from the Government, or its agent in London.

  3. That the agency was capable of being withdrawn, and was withdrawn by the Superintendent.

  4. That the Debentures were held by the Bank as a collateral security for the repayment of advances made by the Bank to the Province, and that on the discharge of the liabilities of the Province under arrangements made between the Colonial Treasurer, Mr. T. Russel, acting on behalf of the Bank of New Zealand, and the Superintendent of the Province all further claims on the part of the Bank in respect of these Debentures was finally determined.

  5. That the Public Debts Act, 1867, having become law, the power of determining the mode of disposal of these Debentures rested with the Colonial Government, and they were practically withdrawn from the control of the Provincial Government, by the enactment of a superior authority, which prohibited their being disposed of in the manner originally contemplated.

The arrangement entered into between the Bank of New Zealand and the Government is embodied in the following extract from Mr. Coster’s letter to the Provincial Secretary of June 2, 1866:—

"The Bank is to act as agents for the placing of these Debentures on the London market, charging for such agency a commission of one per cent. on the amount of the Debentures sold. This commission to cover any charges that may be incurred by the Bank in London for brokerage and advertising. The limit fixed as the price of these Debentures is at present £91 5s. for each £100 Bond.

The formal authority to sell these Debentures was not given at the time that this arrangement was entered into, but at a subsequent date. The authority when given was not absolute as stated by Mr. Coster in his letter of July 4th, 1868, but "at the rate specified in previous correspondence."



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Online Sources for this page:

VUW Te Waharoa — PDF Canterbury Provincial Gazette 1871, No 30




✨ LLM interpretation of page content

💰 Canterbury Six Per Cent Loan Account Statement (continued from previous page)

💰 Finance & Revenue
27 March 1868
Loan Account, Financial Transactions, Bank of New Zealand, Interest Payments, Emigration Account

💰 Bank of New Zealand Claim Against Provincial Government

💰 Finance & Revenue
Bank Claim, Bonds, Public Debts Act, Debentures, Collateral Security
  • T. Russel (Mr), Colonial Treasurer acting on behalf of the Bank of New Zealand
  • Coster (Mr), Author of letter regarding debenture arrangements