—Bowler being here, I showed him your letter, in order to learn his opinion of its proposal before he knew mine. When we both spoke, we agreed—

1st. That the proposed guarantee would not be less onerous on those who gave it, than one for insuring the sale of 33,000 acres by the end of April.

2nd, That, with the sale of 33,000 acres so insured, the Association has nothing to ask of the Company.

3rd. That leaving matters as they are (the 33,000 acres being sold by the 30th of April) the Company will only be entitled to its sixth of £100,000, and not to immediate repayment of its present advance.

4th. Consequently, that whilst the Company makes no concession to the Association, but in fact demands full compliance with the 30th April condition, it asks for a concession from the Association; viz. immediate repayment of most of the present advance.

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Instead of granting something, you ask for more.

But suppose we say nothing about immediate repayment of the advance, still, in asking for this private guarantee, you really ask Godley's friends to do that which the Association begs you not to insist upon. You really concede nothing; and Godley's friends might as well take what they want without giving it the form of a concession by the Company to the Association.

Being unable to see the proposal in any other light, I abstain from even showing it to Godley's friends: because as it can do no good, it might do harm.

I must, however, write to the three men whom it was proposed that the three on your side should meet, to say that the private conference is off.