into the Oriental Bank.
This was reported to Your Lordship in Sir Richard Macdonnell's Dispatch No. 783 of the 11th September 1869, but I do not find that the exact agreement with the Bank was explained, although it was mentioned that the Bank was to allow interest on the current account at the rate of 2 per centum per annum.
Inclosure No. 1. 21 August 1869.
I now inclose copy of the Letter of the Manager of the Oriental Bank which details the terms on which that Bank took charge of the Government account, and Your Lordship will observe that it was agreed that the balance to the credit of the Colony should never be less than £35,000.
This Condition has occasionally proved very inconvenient, as for instance when claims of an extensive nature were made on the Treasury, it was found necessary to call in some of the deposits fixed at a far higher rate of interest than that allowed by the Oriental Bank, although this would not have been necessary, had the Government been enabled to make use of the whole of their current account. Besides, Your Lordship will not fail to observe that practically