receipt of revenue—to the extent of £10,000 to £30,000 without giving rise to any question between us, and the Government may rely on this Bank to that extent at all events, if necessary.

2nd. That the rate charged on such overdrafts will be 6 per cent.

3rd. That the interest allowed on Government deposits, will be 5 per cent on the daily balance.

4th. That on remittances to Great Britain, a concession of 1 per cent, and on all inter-provincial and inter-colonial exchange operations, a concession of ½ per cent. will be made in favour of the Government.

I have confined this tender strictly to the terms of your Honor’s letter of 25th January last; but all other transactions between the Government and this Bank, if the present proposal be accepted, will be entertained in the same liberal spirit.

I have the honour to be,
Sir,
Your most obedient servant,
A. JACKSON,
Manager.

NOT ACCEPTED.

Bank of New South Wales,
Dunedin, 25th March 1862.

His Honor the Superintendent of the Province of Otago.

Sir,—In reply to your communication of 25th January, inviting a tender from this Bank for the custody of the Provincial Government Account, I have the honour to submit herewith the terms on which it will be undertaken.

1st. The Government will be allowed an overdraft to the extent of twenty thousand pounds.

2nd. The rate of interest on any overdraft will be seven and a half per cent. per annum.

3rd. The interest allowed the Government on any deposits at their credit will be five per cent. on the daily balance, up to (£50,000) fifty thousand pounds; above (£50,000) fifty thousand pounds and under (£60,000) sixty thousand pounds, four and a half per cent.; and if above sixty thousand (£60,000), four per cent.

4th. For any remittances the Government may have to make to England, the following charges will be made:—

When the rate of exchange on sixty days’ bills is at or under one per cent., drafts will be issued at par; when the rate is above one per cent., a concession of three-quarters per cent. will be made. Any inter-colonial or inter-provincial drafts required, will be issued at par, unless in the event of war, when the exchange will be subject to any addition consequent on a war risk.

I have the honour to be,
Sir,
Your most obedient servant,
JAMES A. DOUGLAS,
Manager.

Bank of New Zealand,
Dunedin, 22nd March 1862.

His Honor the Superintendent.

Sir,—In reply to your letter of 25th January, I have the honour to state the terms upon which this Bank is willing to undertake the banking business of the Provincial Government.

1. If necessary, an overdraft of fifty thousand pounds (£50,000) would be allowed.

2. The overdraft would be charged with interest at the rate of three per cent. (3 %) under current rates.

3. Interest would be allowed upon the credit balance of current accounts, at five per cent. (5 %) on the weekly balance.

4. On remittances to Great Britain or elsewhere, an advantage of one per cent. (1 %) under current rates would be allowed.

I have the honour to be,
Sir,
Your most obedient servant,
F. LARKWORTHY,
Interim Manager.

(CIRCULAR.)

Superintendent’s Office,
Dunedin, 29th March 1862.

To the Managers of the Banks of New Zealand, New South Wales, and Union Bank of Australia.

Sir,—With reference to tenders received in connection with the Banking Account of the Provincial Government, you are requested to state what was the rate charged on overdrawn accounts on the 25th January, and on the 25th of March, when the tenders were given in. The information to be at this office at 1 o’clock to-day.

I have, &c.,
(Signed) J. RICHARDSON,
Superintendent.

Union Bank of Australia,
Dunedin, March 29, 1862.

To his Honor Major J. Richardson,
Superintendent of Otago.

Sir,—In reply to your Honor’s communication of this date, enquiring as to the rate of interest charged at this Bank on overdrawn accounts on 25th January and on 25th March last, I have the honour