✨ Government Debt and Financial Correspondence
It is as follows:—
"I hereby authorise you to sell on behalf of this Government, the £300,000 (say three hundred thousand pounds) worth of Canterbury Loan Debentures now in your hands at the rate specified in previous correspondence."*
That the agency was limited by instructions is shown by Mr. Moorhouse’s instructions to the Agent of the Province, Mr. Selfe, June 20th, 1866:—"I have also desired them (the Bank) to inform you of any negotiations which may be made for their purchase, and to attend to any suggestions which you in your discretion as Agent for the Province may think proper to make;" also by the fact that it was at Mr. Ward’s instance that the balance of the Debentures was held over from sale in September, 1867.
Mr. Moorhouse’s instructions to Mr. Ward (May 6th, 1867) are very explicit:—
"You will remember that under our arrangement with the Bank of New Zealand, the actual repayment of the balance due to them on our overdrawn account is not required before the month of February next at the earliest; a period which will be sufficient to enable the Government to effect the consolidation which Mr. Stafford admits to be desirable. Looking then to the advantages to accrue to the Province from the assumed action of the General Government, arising from the placing of Provincial securities under one general Colonial debt, I have to request that you will cause our Debentures to be withheld until further instructions can be forwarded to you, influenced by, and arising out of, the actual course of legislation adopted by the Assembly."
On the same day (May 6th) Mr. Stewart (Provincial Secretary) wrote to Mr. Coster as follows:—
"In view, therefore, of the introduction of such a measure, the Government have considered it advisable to instruct Mr. Ward to withdraw from sale for a time the Bonds in the hands of the Bank, and until further instructions can be forwarded to him based upon the action taken by the Assembly, and I have to request that you will instruct your London Branch to carry out Mr. Ward’s requirements in reference hereto."
The understanding of the Provincial Government, that the agency of the Bank was revocable, and that all claims in respect of the unsold Debentures in the hands of the Bank ceased on the repayment of the advances made by the Bank, is further shown by Mr. Moorhouse’s letter to the Managing Director of the Bank in London, of the 9th October, 1867, in which he writes:—
"Upon payment to you of the advances made by you upon the Canterbury Debentures in your possession, please deliver to the Colonial Treasurer, New Zealand, or his order, the Bonds of this Province now held by you against advances."
- Mr. Moorhouse’s letter to Managing Director of the Bank of New Zealand, London, of Feb. 4, 1867.
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Canterbury Provincial Gazette 1871, No 30
✨ LLM interpretation of page content
💰 Sale of Canterbury Loan Debentures
💰 Finance & RevenueDebentures, Sale, Canterbury Loan, Bank of New Zealand
7 names identified
- Moorhouse, Provided instructions regarding sale of debentures
- Selfe, Agent for the Province
- Ward, Instructed to withhold debentures from sale
- Stafford, Admitted consolidation of debts desirable
- Stewart (Provincial Secretary), Wrote to Mr. Coster regarding withdrawal of bonds
- Coster, Instructed to follow Mr. Ward's requirements
- Moorhouse, Wrote to Managing Director of Bank of New Zealand
- Mr. Moorhouse, Provincial Government
- Mr. Stewart, Provincial Secretary