Wellington Sept. 3rd. 1865 My dear McLean, The "Rangatira" will arrive before the Ashley leaves, so that I must send you word of how things are going on here. I suppose you will come down by the Ashley if things are so as to admit of your leaving. We are going to have a hot week and by the end of it we shall know probably how things are likely to go. On the orderpaper for Tuesday are some Resolutions put forward by the Auckland and Otago men proposing the division of the Colony. It was expected that Govt., who have proposed as an amendment "That the unity of the Colony be preserved", would have had a majority of three. Since then however old Fitzherbert has made his Financial statement - I hear now that the Resolutions are to be abandoned and that the fight will take place on the Finance question. You will see old Fitz's speech in the Independent, reported by himself. He took 3 1/2 hours delivering it, and undoubtedly it was an able lucid exposition of the finance policy. It would have been better and clearer if he had done it in one hour and a half instead of three and a half, but that was not to be expected from him of course. You will be amusded when you read the Speech, old Fitz. the extreme of the Prov. party is metamorphised into a thorough Centralist - as the old beggar proceeded in his Speech those who had known him in his former character rubbed their eyes doubting if it were the identical Fitzherbert who was there addressing them. I will now give you some information as to what effect of the Financial policy is likely to have - I have scarcely met any one who is satisfied. The two main points of objection are - the proposals with regard to dealing with the General Ordinary Revenue and the provision for the internal Defence of the Colony. The first of course is the point - Middle Island men and all the Provincial party take up most strongly and very wroth they are at the overthrow of Provincial interests. It is not very easy without explanation to follow or make out the results of the Speech briefly therefore I may say, that the proposal wd. reduce this year's Prov. share of the Customs Revenue from 3/8 to 2/8 this is as near as possible. But the objectionable feature is, that this is not to be permanent, each year for the future the House is to vote such share as it may think fit to the Provinces. It is needless to point out how difficult it will be for the Provinces to carry out their functions with such a state of uncertainty as to the means at their disposal to work on. This applies particularly to the Northern Island where the Territorial Revenue is nearly exhausted and where under the Native Lands Act there is no opportunity of recruiting it. I have individually not over strong feelings on this subject. I shd. like to see the Provinces swept away tomorrow but I confess I do not like this way of doing it. Take for instance Auckland, the Revenue of Auckland is of course Customs Revenue almost entirely, and yet for the future under Govt. proposals Auckland will have nothing certain at all on the contrary we were told that if the Colony needed it the whole of it wd. be taken, but if things get better that perhaps less wd. be wanted. In a word it destroys altogether the credit of the Provinces - they for the future wd. have nothing certain except their territorial Revenue. All Auckland all Otago and Wellington are up in arms at this proposal. Featherstone calls it the most monstrous injustice that ever was proposed. I should say at any rate a large majority of the House were opposed to the adoption of that part of the policy. The part I as a Northern Island man most strongly condemn is the utter insufficiency of the proposals for the Internal Defence of the Colony. Of course it is proposed to send the troops away, though I shant believe they are going, or at least a very few of them. But at any rate Ministers say they are. They propose then that Two sums of £20,000 and £60,000 shall cover the expenditure of the Colony for purpose of Defence up to June 30th. 1866. The first sum £20,000 is to be for the expenses on Militia and Volunteers. This amount will do little if any more than provide for the current expenditure during the training time, and keeping up the necessary Militia stafff so that for all practical purpose of Defence it may be left out of the calculation. The other sum of £60,000 is to pay for everything - Colonial troops - Native Allies - Transport and everything else connected with the Defence of the country. In a word it will provide 800 men for six months calculating the cost of each man at what I believe on good authority is about the average viz. £150. What use 800 men would be to preserve the peace of the country I need not tell you. To my mind a more reckless proposal it would have been impossible to make. It means in my opinion an abandonment of everything we have gained by the war. I would have supported Weld in almost anything rather than have risked the calamity of leaving the country at a time like this without a policy defined and in action. But I cannot go the length of voting confidence in a policy I look on as fraught with such certain ruin as this wd. be - I have voted for Govt. in every division up to this time but I shall be obliged to go against them now, unless they will do that which I fear is out of the question. I mean come to some compromise. It is proposed that they shall be asked to meet their would-be supporters, with a view to seeing if it he not possible to arrange matters. I do not myself hope much from this meeting. It is impossible they can reconsider and entirely reform their Finance policy, and nothing less than that would satisfy the House. I shall be very much mistaken indeed if this next week does not bring about a dissolution certainly either that, or Ministers must give way on each point I have named to you. What will they think at Home of the colony when they hear that Ministers propose a paltry vote of £60,000 a year to keep the peace of the Country. They can think but one thing and that is that in the proposal to send away the Troops we are endeavouring to humbug them. Certainly I shd. think the Governor will tell the Home Govt. and fairly too, that he does not feel justified in sending away the roops with such a provision as this only provided to preserve the Colony. At the same time that we named £60,000 for internal Defence we put down sms like £45,000 for Telegraphs - £42,000 for Postal etc. etc. The fact is the Govt. depends entirely on Middle Island votes and the policy is entirely a Middle Island policy. Really I for the first time begin to look to separation of the Islands as something that will come. I dont say I adopt the opinion but for the first time I do entertain it. Since I write the above I have been at dinner at Bellamys I hear nothing but dissolution dissolution - on all sides - many already seem to realize it as a reality. I do not - there are many and great ups and downs and very sudden ups and downs too in politics. The political horizon may clear itself again and suddenly but it certainly is very overcast at present nor can I see how it can be reasonable expected to be cleared up - we shall see. Wood will be able to work material out of this letter for some matter for his people. I should like a good article to come out on the Defence policy. All the northern journals will take it up and it is a good and just subject for every journalist to make the most of. I have not time to write to Rhodes send him on this letter when you have read it. The Opotiki expedition is not yet arrived. It will probably leave the day after it gets here and I may say it is now expected hourly - the delay has arisen from the time the 57th. have taken to get up the river to relieve Pipiriki. Did you write Grey about the paragraph he was so wild about, I have not seen him since. If it would be advisable to have a post on the Ngaroros where the Military settlers were - it cd. be got by asking Grey for it. Colenso told me of some secret information he had from a Te Aute Native of intended mischief in that neighbourhood. He seemed very much excited about it and has written you particulars. If he had recd. as many reports of the same kind during the last year or two as we have he wd. be better used to them. I shall keep this open in case of having anything to add to it in the morning. Always sincerely Yours, J.D. Ormond. I hear this morning that the Separation Resolution are to go on. The Opotiki expedition has arrived - there is some row about pay with the Bushrangers. It will no doubt be settled and the expedition start almost immediately. Col. Harington will give you all the latest news.